If you want to know who really controls Tata Metaliks Limited (NSE: TATAMETALI), then you will need to look at the makeup of its share register. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Companies that were previously state-owned tend to have fewer insiders.

With a market capitalization of 34 billion yen, Tata Metaliks is a small cap stock, so it may not be well known to many institutional investors. In the graph below, we can see that institutional investors have bought into the company. Let’s take a closer look at what different types of shareholders can tell us about Tata Metaliks.

See our latest review for Tata Metaliks

Distribution of the NSEI property: TATAMETALI June 4, 2021

What does institutional ownership tell us about Tata Metaliks?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that Tata Metaliks has institutional investors; and they own a good portion of the company’s stock. This suggests some credibility among professional investors. But we cannot trust this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see Tata Metaliks revenue and historical income below, but keep in mind that there is always more to tell.

profit and revenue growth
NSEI: TATAMETALI Profits and Revenue Growth June 4, 2021

Tata Metaliks is not owned by hedge funds. The company’s largest shareholder is Tata Steel Limited, with a 60% stake. Essentially, this means that they have considerable influence, if not absolute control, over the future of the business. HDFC Asset Management Company Limited is the second largest shareholder holding 8.1% of the ordinary shares, and SBI Funds Management Private Limited owns approximately 2.0% of the shares of the company.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Insider property of Tata Metaliks

The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

We note that our data does not show any member of the board of directors holding shares, personally. Since we do not track insider ownership, we may have missing data. It would therefore be interesting to assess here the remuneration and seniority of the CEO.

General public property

The general public holds 21% of the capital of Tata Metaliks. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Public enterprise ownership

It seems to us that state-owned companies own 60% of Tata Metaliks. It’s hard to say for sure, but it suggests that they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Tata Metaliks, there are many other factors that we need to take into account. Know that Tata Metaliks shows 2 warning signs in our investment analysis , you must know…

Of course this might not be the best stock to buy. So take a look at this free free list of interesting companies.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

If you decide to trade Tata Metaliks, use the cheapest platform * which is ranked # 1 overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, currencies, bonds and funds in 135 markets, all from one integrated account.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

Leave a Reply

Your email address will not be published.