Could the ownership structure of Navin Fluorine International Limited (NSE: NAVINFLUOR) tell us anything useful?

If you want to know who actually controls Navin Fluorine International Limited (NSE: NAVINFLUOR), you will need to look at the composition of its share register. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. We also tend to see a decline in insider participation in companies that were previously public.

With a market cap of ₹195 billion, Navin Fluorine International is a decent size, so it’s probably on the radar of institutional investors. In the graph below, we can see that the institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Navin Fluorine International.

Discover our latest analyzes for Navin Fluorine International

NSEI: NAVINFLUOR Ownership Breakdown April 17, 2022

What does institutional ownership tell us about Navin Fluorine International?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Navin Fluorine International already has establishments on the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Navin Fluorine International’s earnings history below. Of course, the future is what really matters.

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NSEI: NAVINFLUOR Earnings and Revenue Growth April 17, 2022

Hedge funds don’t have a lot of shares in Navin Fluorine International. Mafatlal Impex Pvt Ltd is currently the largest shareholder of the company with 23% of the outstanding shares. In comparison, the second and third shareholders hold approximately 7.2% and 5.0% of the shares.

We also observed that the top 10 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.

Insider Ownership Of Navin Fluorine International

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

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders hold shares of Navin Fluorine International Limited. Insiders have a significant stake worth ₹7.5 billion. Most would see this as a real positive. It’s good to see this level of investment by insiders. You can check here if these insiders have bought recently.

General public property

The general public, generally individual investors, holds 34% of the capital of Navin Fluorine International. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

It seems that the Private Companies hold 27% of the capital of Navin Fluorine International. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Take risks for example – Navin Fluorine International has 2 warning signs we think you should know.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.