Thebloom county calvin and hobbes big shareholder groups in Speciality Restaurants Limited (

NSE:SPECIALITY

) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’

With a market capitalization of ₹3.7b, Speciality Restaurants is a small cap stock, so it might not be well known by many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about SPECIALITY.

View our latest analysis for Speciality Restaurants

NSEI:SPECIALITY Ownership Summary January 2nd 19

What Does The Institutional Ownership Tell Us About Speciality Restaurants?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Speciality Restaurants already has institutions on the share registry. Indeed, they own 16% of the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Speciality Restaurants, (below). Of course, keep in mind that there are other factors to consider, too.

NSEI:SPECIALITY Income Statement Export January 2nd 19

We note that hedge funds don’t have a meaningful investment in Speciality Restaurants. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Speciality Restaurants

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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

It seems that insiders own more than half the Speciality Restaurants Limited stock. This gives them a lot of power. That means they own ₹2.5b worth of shares in the ₹3.7b company. That’s quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to

discover

(for free)

if they have been buying or selling.

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General Public Ownership

With a 15% ownership, the general public have some degree of sway over SPECIALITY. 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.

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.

Many find it useful

to take an in depth look at how a company has performed in the past. You can access

this

detailed graph

of past earnings, revenue and cash flow

.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

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