Bullish Capacit'e Infraprojects Insiders Rewarded As Their Investment Rises To ₹1.35b

Capacit'e Infraprojects Limited (NSE:CAPACITE) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a ₹3.7b rise in the company's market capitalisation, translating to a gain of 172% on their initial investment. In other words, the original ₹496.0m purchase is now worth ₹1.35b.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Capacit'e Infraprojects

The Last 12 Months Of Insider Transactions At Capacit'e Infraprojects

Over the last year, we can see that the biggest insider purchase was by Chairman Rohit Katyal for ₹248m worth of shares, at about ₹160 per share. Even though the purchase was made at a significantly lower price than the recent price (₹436), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Capacit'e Infraprojects insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Capacit'e Infraprojects is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Capacit'e Infraprojects insiders own 31% of the company, worth about ₹11b. 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 Does This Data Suggest About Capacit'e Infraprojects Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Capacit'e Infraprojects insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of 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. For example - Capacit'e Infraprojects has 1 warning sign we think you should be aware of.

Of course Capacit'e Infraprojects may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using 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 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.