Nse: Gtlinfra Infraestructura GTL Ltda. is dedicated to providing telecommunications towers on a shared basis to multiple telecommunications operators. Its services include shared infrastructure and energy management services. The company was founded on February 4, 2004, in Mumbai, India.
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Institutional owners may consider drastic measures as GTL Infrastructure Limited’s (NSE: GTLINFRA) recent ₹1.9b drop adds to long-term losses.
- Significantly high institutional ownership means GTL Infrastructure’s stock prices are sensitive to its trading actions.
- The top 10 shareholders hold 52% of the company.
- Proprietary research, combined with past performance data, can help fully understand a stock’s opportunities.
A look at the shareholders of GTL Infrastructure Limited (NSE: GTLINFRA) can tell us which group is the most powerful. With 53% of the capital, the institutions own the maximum company shares. The group will benefit more if the stock rises (or lose more if there is a fall).
As a result, institutional investors suffered enormous losses last week after the market capitalization fell by Rs 1,900 crore. The recent loss on top of the annual loss of 31% of shareholders may not sit well, especially with this class of shareholders. Often referred to as “market makers,” institutions wield significant power to influence the price dynamics of any stock. Therefore, if the slide continues, institutional investors may be forced to sell GTL infrastructure, which could hurt individual investors.
GTL Infrastructure (NSE: GTLINFRA) Third Quarter 2023 Results
Key Financial Results
- Revenue: ₹3.6 billion (down 3.0% from Q3 2022).
- Net loss: ₹4.64 billion (loss magnified by 135% from Q3 2022).
- Loss of ₹0.36 per share (deteriorated further from loss of ₹0.15 in Q3 2022).
What Does The Organized Ownership Tell Us About GTL Infrastructure?
Institutional investors often compare their returns with the returns of a standard tracking index. Therefore, they generally consider buying larger companies included in the relevant benchmark.
GTL Infraestructura already has establishments registered in the share registry. They have a good stake in the company. This may indicate that the company has some credibility in the investment community. However, it is better to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they will find themselves in a “crowded trade.” Various parties may compete to sell shares quickly when such a transaction goes wrong. This risk is more significant in a company with no history of growth. You can see the historical earnings and revenue for GTL Infrastructure below, but remember, there is always more to tell.
With institutional investors holding more than half of the issued shares, the board will likely need to pay attention to their preferences. Hedge funds don’t have a lot of claims in GTL Infrastructure. Our data shows that the major shareholder is Union Asset Management Company Private Limited, with 12% outstanding shares. The asset management arm of the Central Bank of India is the second largest shareholder, holding 7.4% of the common shares, and the asset management arm of Bank of Baroda owns about 5.7% of the shares ordinary of the company.
We also note that the top 10 shareholders account for more than half of the share register, with some small shareholders balancing the interests of the larger ones to some extent.
Institutional ownership research is an excellent way to gauge and filter the expected return of a stock. The same can be obtained by studying the sentiments of analysts. We don’t see any analyst coverage of the store now, so it’s unlikely the company is widely controlled.
Insider Ownership Of nse: gtlinfra Infrastructure
The meaning of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual inside information, capturing at least board members. The company’s administration answers to the board of directors, and it must represent the interests of the shareholders. In particular, sometimes the top executives themselves sit on the board of directors.
In general, I think internal ownership is a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that members of GTL Infrastructure Limited own less than 1% of the company. But they may have an indirect interest through a corporate structure that we have not pointed out. It has a market capitalization of just Rs 16 billion, and the board owns just Rs 11 crore of shares in its name. Many tend to prefer to see a board with more enormous stakes.
General Public Ownership
The general public, including retail investors, owns 41% of the company’s share capital and, therefore, cannot be easily ignored. While this group may not necessarily call the shots, they can certainly influence how the business is run.
Private Company Ownership
It seems that private companies own 5.3% of the capital of GTL Infraestructura. It is difficult to conclude from this fact alone, so it is worth investigating who owns these private companies. Sometimes insiders or other linked parties have an interest in the shares of a public company through a separate private company.
I find it very interesting to see who exactly is the owner of a company. But to get an idea, we must also consider other information. Take risks. For example, GTL infrastructure has three warning signs (and two we don’t like too much) that we think you should be aware of.
Of course, it may not be the best stock to buy. Then take a look at this free list of interesting companies.
NB: The figures in this article are calculated using data from the last twelve months, which refers to the 12 months ending on the previous daytime of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the entire year.
This Smart Diet Health article is general. We provide feedback based on historical data and analyst forecasts using only unbiased methodology, and our reports are not intended to be financial advice. It does not reference buying or selling shares and does not consider your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our study may not view the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St does not have a position in the mentioned stocks.