Is Monte Carlo Fashions Limited (NSE: MONTECARLO) popular among insiders?
A look at the shareholders of Monte Carlo Fashions Limited (NSE: MONTECARLO) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Warren Buffett said he enjoys “a business with sustainable competitive advantages, led by skilled people and owner-centered.” So it’s nice to see some insider ownership as it may suggest that the management is owner-driven.
Monte Carlo Fashions is not a big company by global standards. It has a market cap of 7.8 billion yen, which means it wouldn’t get the attention of many institutional investors. In the graph below, we can see that the institutions hold shares in the company. Let’s take a closer look at what different types of shareholders can tell us about Monte Carlo Fashions.
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What does institutional ownership tell us about Monte Carlo fashion?
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.
Monte Carlo Fashions already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. 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 stocks quickly. This risk is higher in a company without a history of growth. You can see Monte Carlo Fashions historical income and earnings below, but keep in mind that there is always more to tell.
Monte Carlo Fashions is not owned by hedge funds. Looking at our data we can see that the largest shareholder is Girnar Investment Ltd with 32% of the shares outstanding. Nagdevi Trading & Investment Co Ltd, Asset Management Arm is the second largest shareholder holding 24% of the common stock, and Nahar Capital and Financial Services Limited owns around 8.0% of the shares of the company. Additionally, CEO Jawahar Oswal owns 0.6% of the company’s shares.
A more detailed study of the register of shareholders showed us that 2 of the major shareholders hold a considerable share of the ownership of the company, through their 56% 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. We are not seeing any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider property of Monte Carlo Fashions
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.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
I can report that insiders own shares of Monte Carlo Fashions Limited. In their own name, the insiders own shares worth 499 million yen in the company 7.8 billion yen. Some would say this shows the alignment of interests between shareholders and the board, although I generally prefer to see larger insider holdings. But it might be worth checking out if these insiders have sold.
General public property
The general public, with a 21% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
Our data indicates that private companies own 35% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
Public enterprise ownership
State-owned companies currently own 8.0% of the shares of Monte Carlo Fashions. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. For example, we have identified 1 warning sign for Monte Carlo Fashions that you need to be aware of.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this 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 shares 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 the mentioned stocks.
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