Are the institutions heavily invested in shares of Orient Green Power Company Limited (NSE: GREENPOWER)?

The large shareholder groups of Orient Green Power Company Limited (NSE: GREENPOWER) have power over the company. Insiders often own a large portion of younger and smaller firms, while larger firms tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.

With a market cap of 8.7 billion yen, Orient Green Power is a small cap stock, so it may not be well known to many institutional investors. Our analysis of company ownership, below, shows that institutional investors bought the company. Let’s dig deeper into each type of owner, to learn more about Orient Green Power.

Discover our latest analysis for Orient Green Power

Distribution of NSEI property: GREENPOWER December 15, 2021

What does institutional ownership tell us about Orient Green Power?

Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.

We can see that Orient Green Power has institutional investors; and they own a good portion of the company’s stock. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell shares quickly. This risk is higher in a company without a history of growth. You can see Orient Green Power’s historical earnings and earnings below, but keep in mind that there is always more to tell.

profit and revenue growth
NSEI: GREENPOWER Profits and Revenue Growth December 15, 2021

Orient Green Power is not owned by hedge funds. Shriram Group Pvt. Co. is currently the largest shareholder, with 49% of the shares outstanding. In comparison, the second and third shareholders hold around 7.9% and 2.7% of the capital.

A more detailed study of the register of shareholders showed us that 2 of the main shareholders hold a considerable share of the ownership of the company, through their 57% stake.

While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Orient Green Power insider ownership

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders of Orient Green Power Company Limited own less than 1% of the company. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. It has a market capitalization of just 8.7 billion yen and the board of directors has only 2.9 million yen of shares to its name. Many tend to prefer to see a board with larger holdings. A good next step might be to take a look at this free insider buying and selling summary.

General public property

The general public, including retail investors, own a 26% stake in the company and therefore cannot be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.

Private shareholders

With a 7.9% stake, private equity firms could influence the board of directors of Orient Green Power. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.

Owned by a private company

Our data indicates that private companies own 59% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Orient Green Power, there are many other factors that we need to take into account. Concrete example: we have spotted 3 warning signs for Orient Green Power you should be aware of it, and one of them doesn’t suit us very well.

Sure this might not be the best stock to buy. So take a look at this free free list of interesting companies.

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

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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