Could Multi Commodity Exchange of India Limited’s (NSE:MCX) Investor Composition Influence The Stock Price?

Source: finance.yahoo.com

If you want to know who really controls Multi Commodity Exchange of India Limited (NSE:MCX), then you’ll have to look at the makeup of its share registry. 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.

Multi Commodity Exchange of India is not a large company by global standards. It has a market capitalization of ₹40b, 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 own shares in the company. Let’s delve deeper into each type of owner, to discover more about MCX.

What Does The Institutional Ownership Tell Us About Multi Commodity Exchange of India?

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 major indices.

We can see that Multi Commodity Exchange of India does have institutional investors; and they hold 46% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Multi Commodity Exchange of India, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don’t have many shares in Multi Commodity Exchange of India. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Multi Commodity Exchange of India

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.