Every investor in Escorts Limited (NSE: ESCORTS) should know the most powerful groups of shareholders. Institutions often own shares in more established companies, while it is not uncommon for insiders to own quite a bit of smaller companies. Warren Buffett said he likes “a company that has an enduring competitive advantage and is run by capable, owner-centric people.” So it’s nice to see inside ownership as it may suggest the management is owner-focused.
With a market cap of £ 182 billion, Escorts is a decent size, so it’s likely on institutional investor radar. A look at our data on the owner groups (see below) shows that institutions are recognizable in the share register. Let’s take a closer look at what the different types of shareholders can say about escorts.
Check out our latest analysis for escorts
NSEI: ESCORTS Ownership Breakdown February 19, 2021
What does institutional ownership tell us about escorts?
Institutional investors typically compare their own returns to the returns of a widely tracked index. As a result, they generally consider buying larger companies that are in the relevant benchmark index.
As you can see, institutional investors have a reasonable amount of exposure to escorts. This implies that the analysts who work for these institutions have looked at the stock and like it. But just like everyone else, they could be wrong. It is not uncommon for a large stock price to fall when two large institutional investors are trying to sell a stock at the same time. It is therefore worthwhile to check the earnings trend of escorts so far (see below). Of course, keep in mind that there are other factors to consider as well.
NSEI: ESCORTS earnings and sales growth February 19, 2021
Hedge funds don’t have many shares in escorts. Escorts Benefit and Welfare Trust is currently the largest shareholder with 26% of the shares issued. In this context, the second largest shareholder holds around 9.3% of the shares issued, followed by the third largest shareholder of 8.1%. Additionally, we found that Nikhil Nanda, the CEO, attributed 0.9% of the shares to her name.
Our research has also shown that around 51% of the company is controlled by the top 5 shareholders, suggesting that these owners have a significant impact on the business.
While it makes sense to examine institutional ownership data for a company, it is also useful to examine analysts’ views to determine which direction the wind is blowing. Quite a few analysts cover the stock, so it’s easy to see forecast growth.
Inside ownership of escorts
While the exact definition of an insider can be subjective, almost every board member considers an insider. Management ultimately replies to the board. However, it’s not uncommon for managers to be board members, especially if they’re founders or CEOs.
I generally think insider ownership is a good thing. In some cases, however, it is more difficult for other shareholders to hold the board of directors accountable for decisions.
Shareholders would probably be interested to know that Insiders own shares in Escorts Limited. The Insiders have a significant stake worth £ 11 billion. Most would consider this a really positive one. If you’d like to investigate the Insider Targeting issue, you can click here to see if Insiders bought or sold.
General public property
The general public, with a 17% stake in the company, is not easily ignored. While this size of property may not be sufficient to sway a political decision in their favor, they can still have a collective influence on company policies.
It appears that private companies own 12% of the escort stocks. Private companies can be affiliated companies. Sometimes insiders have an interest in a public company through an interest in a private company rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it is worth noting that this is an area for further research.
It seems to us that public companies own 9.3% of the escorts. It’s hard to say, but this suggests that they have intertwined business interests. This could be a strategic matter so it is worth investigating this area for changes in ownership.
It is always worth thinking about the different groups that own shares in a company. But in order to better understand escorts, we need to consider many other factors. Be aware that escorts will appear 2 warning signs in our investment analysis , you should know about …
Ultimately The future is most important. You can access it free Report on analyst forecast for the company.
NB: The figures in this article are calculated using data from the last twelve months, which refers to the twelve month period ending on the last date of the month in which the financial statements are dated. This may not match the figures in the annual report for the full year.
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