Non-Independent Executive Chairman & MD Kamleshkumar Patel Just Bought 8.8% More Shares In Asian Granito India Limited (NSE:ASIANTILES)

Whilst it may not be a huge deal, we thought it was good to see that the Asian Granito India Limited (NSE:ASIANTILES) Non-Independent Executive Chairman & MD, Kamleshkumar Patel, recently bought ₹6.4m worth of stock, for ₹257 per share. Although the purchase is not a big one, increasing their shareholding by only 8.8%, it can be interpreted as a good sign.

See our latest analysis for Asian Granito India

Asian Granito India Insider Transactions Over The Last Year

In fact, the recent purchase by Non-Independent Executive Chairman & MD Kamleshkumar Patel was not their only acquisition of Asian Granito India shares this year. They previously made an even bigger purchase of ₹40m worth of shares at a price of ₹301 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹245). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid ₹118m for 399.50k shares. But insiders sold 478.05k shares worth ₹141m. In total, Asian Granito India insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Asian Granito India insiders own 47% of the company, currently worth about ₹3.7b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Asian Granito India Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Asian Granito India insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for Asian Granito India (1 is a bit concerning!) that we believe deserve your full attention.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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