Garden Reach Shipbuilders & Engineers Limited (NSE:GRSE) share price fell 11% last week; the state or the government would not be happy

A look at the shareholders of Garden Reach Shipbuilders & Engineers Limited (NSE:GRSE) can tell us which group is more powerful. With a 75% stake, the state or government owns the most shares in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

As the market capitalization fell to ₹32 billion last week, the state or government would have suffered the highest losses than any other group of shareholders in the company.

Let’s dive deeper into each owner type in Garden Reach Shipbuilders & Engineers, starting with the table below.

Check out our latest analysis for Garden Reach Shipbuilders & Engineers

NSEI: Distribution of GRSE ownership as of April 30, 2022

What does institutional ownership tell us about the shipbuilders and engineers of Garden Reach?

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.

We can see that Garden Reach Shipbuilders & Engineers has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking out the Garden Reach Shipbuilders & Engineers revenue history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NSEI:GRSE Earnings and Revenue Growth April 30, 2022

Garden Reach Shipbuilders & Engineers is not owned by hedge funds. India is currently the company’s largest shareholder with 75% of the outstanding shares. This essentially means that they have considerable influence, if not absolute control, over the future of the company. For context, the second shareholder owns approximately 8.5% of the outstanding shares, followed by a 1.8% stake by the third shareholder.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.

Insider owned by Garden Reach shipbuilders and engineers

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

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.

We can see insiders holding shares in Garden Reach Shipbuilders & Engineers Limited. As individuals, Insiders collectively own ₹355 million of the ₹32 billion society. This shows at least some alignment. You can click here to see if these insiders have been buying or selling.

General public property

The general public, including retail investors, owns 13% of the company’s capital and therefore cannot be easily ignored. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Take risks for example – Garden Reach Shipbuilders & Engineers has 2 warning signs we think you should know.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of interesting companies, supported by solid financial data.

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 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.

Karen J. Nelson