Public companies own 24% of Godrej Consumer Products Limited (NSE: GODREJCP ) and private companies control 38% of the company. | Jobs Recent


If you want to know who really controls Godrej Consumer Products Limited (NSE:GODREJCP), then you’ll have to look at the composition of its share register. And the group that has the biggest piece of the pie is private companies with 38% ownership. This means that the group benefits the most if the stock goes up (or loses the most if it falls).

Meanwhile, public companies represent 24% of the company’s shareholders.

We have zoomed in on the various ownership groups of Godrej Consumer Products in the chart below.

Take a look opportunities and risks within the personal products industry AND.

ownership-distribution
NSEI: GODREJCP Ownership Breakdown October 19, 2022

What does institutional ownership tell us about Godrej consumer products?

Many institutions measure their performance using an index that approximates the local market. Therefore, they usually pay more attention to companies that are included in the main indexes.

As you can see, institutional investors have a significant stake in Godrej Consumer Products. This can mean that the company has a certain level of credibility in the investment community. However, it is best to be careful about relying on the supposed confirmation you get with institutional investors. Even they make mistakes sometimes. When stocks are held by multiple institutions, there is always the risk that they are in a “crowded trade”. When such a trade goes wrong, multiple parties can compete to sell the shares quickly. This risk is greater in a company without a history of growth. You can view Godrej Consumer Products historical earnings and revenue below, but remember there’s always more to the story.

earnings and revenue growth
NSEI: GODREJCP Earnings and Revenue Growth Oct 19, 2022

Godrej Consumer Products is not owned by hedge funds. The largest shareholder of the company is Godrej Seeds and Genetics Limited with 27% ownership. Godrej Industries Limited is the second largest shareholder owning 24% of the ordinary shares, while Godrej & Boyce Manufacturing Company Limited holds approximately 7.3% of the company’s shares.

To make our study more interesting, we found that the top two shareholders have majority ownership in the company, which means they are powerful enough to influence the company’s decisions.

While it makes sense to examine a company’s institutional ownership data, it also makes sense to examine analyst sentiment to know which way the wind is blowing. Quite a few analysts cover the stock, so it would be fairly easy to review the predicted growth.

Internal ownership of Godrej consumer products

The definition of company insiders can be subjective and varies between jurisdictions. Our data reflects individual insiders and includes at least board members. The company’s management is responsible to the board, which should represent the interests of the shareholders. In particular, sometimes top-level managers are themselves on the board.

Most consider insider ownership to be positive because it can mean that the board is well aligned with other shareholders. However, in some cases too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders hold shares in Godrej Consumer Products Limited. Insiders own shares worth ₹16b (at current prices). Good to see this level of investment. You can check here to see if these connoisseurs have purchased recently.

General public ownership

With a 17% ownership, the general public, mostly consisting of individual investors, has a degree of influence over Godrej Consumer Products. Although this size of ownership may not be enough to sway a policy decision in their favor, they can still collectively influence company policies.

Private ownership of the company

Private companies appear to hold 38% of Godrej Consumer Products. It might be worth looking into this further. If related persons, such as insiders, have a stake in one of these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Public company ownership

Public companies currently own 24% of Godrej Consumer Products. This may be a strategic interest and the two companies may have related business interests. It could be that they broke up. This holding is probably worth further investigation.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. In order to better understand Godrej consumer products, we need to consider many other factors. For this purpose, you need to be aware 1 warning sign we noticed at Godrej Consumer Products.

If you’re like me, you might want to consider whether this business will grow or shrink. Fortunately, you can check out this free report that shows analysts’ predictions for its future.

Note: The figures in this article are calculated on the basis of data from the last twelve months, which relate to the 12-month period ending on the last day of the month in which the financial statement is dated. This may not be consistent with the annual report figures for the full year.

Valuation is complex, but we help simplify it.

Find out if Godrej consumer products is potentially overrated or underrated if you check out our comprehensive analysis that includes fair value estimates, risks and caveats, dividends, insider trading and financial health.

Check out our free analysis

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 as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or financial situation. Our goal is to provide long-term oriented analysis based on fundamental data. Please note that our analysis may not take into account recent price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.



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