Zee Entertainment Enterprises Limited (NSE:ZEEL) is favored by institutional owners who hold 74% of the company

Key Insights

• The substantial holdings of institutions in Zee Entertainment Enterprises imply that they have significant influence over the company’s share price.
• 50% of the business is held by the 14 largest shareholders
• Proprietary research, coupled with analyst forecast data, helps provide a good understanding of the opportunities in a stock.

A look at the shareholders of Zee Entertainment Enterprises Limited (NSE:ZEEL) can tell us which group is more powerful. We can see that institutions hold the majority of the company with 74% ownership. In other words, the group faces maximum upside potential (or downside risk).

Given the vast amount of money and research capabilities at its disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a significant amount of institutional money invested in a company is generally viewed as a positive attribute.

Let’s take a closer look at what the different types of shareholders can tell us about Zee Entertainment Enterprises.

See our latest analysis for Zee Entertainment Enterprises

What does institutional ownership tell us about Zee Entertainment Enterprises?

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

Zee Entertainment Enterprises already has institutions on the share registry. In fact, they have a respectable stake in the company. This implies that the analysts working for these institutions have looked at the stock and like it. But just like anyone else, they can be wrong. It is not uncommon to see a big drop in the share price if two large institutional investors try to sell a stock at the same time. Therefore, it is worth checking the past earnings trajectory of Zee Entertainment Enterprises (below). Of course, keep in mind that there are other factors to consider as well.

Institutional investors hold over 50% of the company, so together they can likely have a significant influence on board decisions. We note that hedge funds do not have a significant investment in Zee Entertainment Enterprises. HDFC Asset Management Company Limited is currently the largest shareholder in the company, with 6.3% of the outstanding shares. Sprucegrove Investment Management Ltd is the second largest shareholder, holding 5.0% of the common shares, and Life Insurance Corporation of India, Asset Management Arm holds about 4.6% of the company’s shares.

After doing some more research, we found that the top 14 shareholders hold a combined 50% stake in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiment to see which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are predicting as well.

Internal property of Zee Entertainment Enterprises

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management runs the business, but the CEO will answer to the board, even if he or she is a member of it.

Most people view insider ownership as a positive thing because it can indicate that the board is well aligned with other shareholders. However, sometimes too much power is concentrated within this group.

Our latest data indicates that insiders own less than 1% of Zee Entertainment Enterprises Limited. But they may have an indirect interest through a corporate structure that we haven’t identified. Keep in mind that it’s a large company and insiders own ₹47k worth of shares. Absolute value may be more important than proportional holding. It’s always good to see at least some insider ownership, but it might be worth checking if these insiders have been selling.

General Public Property

With a 22% ownership, the general public, mostly consisting of individual investors, has some degree of influence over Zee Entertainment Enterprises. This size of ownership, though considerable, may not be enough to change the company’s policy if the decision is not in sync with other large shareholders.

Private company ownership

Our data indicates that Private Companies hold 4.0% 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 is worth noting as an area for future research.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to understand Zee Entertainment Enterprises better, we need to consider many other factors. For example, we found 2 Warning Signs for Zee Entertainment Enterprises that you should know before investing here.

But ultimately is the futureIt’s not the past that will determine how well the owners of this business will do. So we thought it would be wise to take a look at this free report that shows whether analysts are predicting a brighter future.

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

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our aim is to bring you long-term focused analysis, driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Contact us directly. Alternatively, email editorial-team@simplywallst.com