Could Kingfa Science & Technology (India) Limited’s (NSE:KINGFA) Investor Composition Influence The Stock Price? – Simply Wall St News

Posted on


A look at the shareholders of Kingfa Science & Technology (India) Limited (NSE:KINGFA) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

Kingfa Science & Technology (India) is not a large company by global standards. It has a market capitalization of ₹7.5b, which means it wouldn’t have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it’s seems that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about KINGFA.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

See our latest analysis for Kingfa Science & Technology (India)

NSEI:KINGFA Ownership Summary, May 21st 2019
NSEI:KINGFA Ownership Summary, May 21st 2019

What Does The Institutional Ownership Tell Us About Kingfa Science & Technology (India)?

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 Kingfa Science & Technology (India) does have institutional investors; and they hold 6.6% of the stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Kingfa Science & Technology (India)’s historic earnings and revenue, below, but keep in mind there’s always more to the story.

ALSO READ :  Scouting the ACC 2019: Georgia Tech Yellow Jackets | College
NSEI:KINGFA Income Statement, May 21st 2019
NSEI:KINGFA Income Statement, May 21st 2019

Hedge funds don’t have many shares in Kingfa Science & Technology (India). Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Kingfa Science & Technology (India)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own some shares in Kingfa Science & Technology (India) Limited. As individuals, the insiders collectively own ₹252m worth of the ₹7.5b company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, with a 15% stake in the company, will not easily be ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

ALSO READ :  The SEC wants disgraced VC Mike Rothenberg to cough up more than $30 million – TechCrunch

Public Company Ownership

Public companies currently own 75% of KINGFA 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

ALSO READ :  Twitter will hide rule-breaking politicians' tweets

These great dividend stocks are beating your savings account

Not only have these stocks been reliable dividend payers for the last 10 years but with the yield over 3% they are also easily beating your savings account (let alone the possible capital gains). Click here to see them for FREE on Simply Wall St.



Source link

Recommended for you