Private companies are TAJGVK Hotels & Resorts Limited’s (NSE:TAJGVK) biggest owners and

Key Insights

If you want to know who really controls TAJGVK Hotels & Resorts Limited (NSE:TAJGVK), then you’ll have to look at the makeup of its share registry. With 43% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week’s 16% decline in share price, private companies suffered the most losses.

Let’s take a closer look to see what the different types of shareholders can tell us about TAJGVK Hotels & Resorts.

See our latest analysis for TAJGVK Hotels & Resorts

What Does The Institutional Ownership Tell Us About TAJGVK Hotels & Resorts?

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

We can see that TAJGVK Hotels & Resorts does have institutional investors; and they hold a good portion of the company’s stock. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at TAJGVK Hotels & Resorts’ earnings history below. Of course, the future is what really matters.

Hedge funds don’t have many shares in TAJGVK Hotels & Resorts. Our data shows that The Indian Hotels Company Limited is the largest shareholder with 26% of shares outstanding. For context, the second largest shareholder holds about 24% of the shares outstanding, followed by an ownership of 19% by the third-largest shareholder.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of TAJGVK Hotels & Resorts

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data suggests that insiders own under 1% of TAJGVK Hotels & Resorts Limited in their own names. But they may have an indirect interest through a corporate structure that we haven’t picked up on. It seems the board members have no more than ₹182m worth of shares in the ₹20b company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over TAJGVK Hotels & Resorts. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 43%, of the company’s shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it’s hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

Public companies currently own 26% of TAJGVK Hotels & Resorts stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand TAJGVK Hotels & Resorts better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we’ve spotted 1 warning sign for TAJGVK Hotels & Resorts you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.