This is what the shareholding structure of Great Eastern Shipping Company Limited (NSE: GESHIP) looks like


The large shareholder groups of the Great Eastern Shipping Company Limited (NSE: GESHIP) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

With a market cap of 47 billion yen, Great Eastern Shipping is a small-cap stock, so it may not be well known to many institutional investors. In the graphic below, we can see that the institutions are visible on the share register. We can zoom in on the different property groups to find out more about Great Eastern Shipping.

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Distribution of the NSEI property: GESHIP August 10, 2021

What does institutional ownership tell us about Great Eastern Shipping?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Great Eastern Shipping already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Great Eastern Shipping’s earnings history below. Of course, the future is what really matters.

profit and revenue growth
NSEI: GESHIP Earnings and Revenue Growth August 10, 2021

Great Eastern Shipping is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Ravi Sheth with 11% of the shares outstanding. With respectively 11% and 7.2% of the shares outstanding, Bharat Sheth and Nalanda Capital Pte Ltd are the second and third largest shareholders. Bharat Sheth, who is the second largest shareholder, also holds the title of CEO.

Upon closer inspection, we found that more than half of the company’s stock is owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are to some extent outweighed by the smaller ones.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. As far as I know, there is no analyst coverage of the company, so it probably goes unnoticed.

Insider property of Great Eastern Shipping

The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.

Our information suggests that insiders have a significant stake in The Great Eastern Shipping Company Limited. Insiders own 12 billion yen of shares in the company 47 billion yen. I would say this shows alignment with shareholders, but it should be noted that the company is still quite small; some insiders may have founded the company. You can click here to see if these insiders have bought or sold.

General public property

The general public has a 26% stake in Great Eastern Shipping. This size of ownership, while considerable, may not be enough to change company policy if the decision is not aligned with other large shareholders.

Private shareholders

Private equity firms hold a 7.2% stake in Great Eastern Shipping. This suggests that they can influence key policy decisions. Some might like this, as sometimes private capital is activists holding management to account. But other times, the private equity sells, after you have taken the company to the stock market.

Owned by a private company

We can see that the private companies own 4.5% of the issued shares. It might be worth pursuing the matter further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. To do this, you need to know the 4 warning signs we spotted with Great Eastern Shipping.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.

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

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