Sanjay Agarwal Sirca Paints India Limited's (NSE:SIRCA) CEO is the most bullish insider, and their stock value gained 14%last week

Key Insights

• Insiders appear to have a vested interest in Sirca Paints India's growth, as seen by their sizeable ownership
• The top 2 shareholders own 51% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

We've discovered 1 warning sign about Sirca Paints India. View them for free.

If you want to know who really controls Sirca Paints India Limited (NSE:SIRCA), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 14% gain.

Let's delve deeper into each type of owner of Sirca Paints India, beginning with the chart below.

Check out our latest analysis for Sirca Paints India

What Does The Lack Of Institutional Ownership Tell Us About Sirca Paints India?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Sirca Paints India might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Sirca Paints India is not owned by hedge funds. With a 33% stake, CEO Sanjay Agarwal is the largest shareholder. BGB Italia SRL is the second largest shareholder owning 19% of common stock, and Gurjit Bains holds about 14% of the company stock. Interestingly, the third-largest shareholder, Gurjit Bains is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Sirca Paints India

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own the majority of Sirca Paints India Limited. This means they can collectively make decisions for the company. That means they own ₹9.4b worth of shares in the ₹16b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 19% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 23%, 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Sirca Paints India better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Sirca Paints India .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.