Enviro Infra Engineers Insiders May Regret Not Buying More, Market Cap Hits ₹43b

Last week, Enviro Infra Engineers Limited (NSE:EIEL) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 14% last week, resulting in a ₹5.5b increase in the company's market worth, implying a 26% gain on their initial purchase. In other words, the original ₹23.3m purchase is now worth ₹29.4m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Enviro Infra Engineers Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chairman & Whole-Time Director Sanjay Jain for ₹23m worth of shares, at about ₹200 per share. Even though the purchase was made at a significantly lower price than the recent price (₹247), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Enviro Infra Engineers

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Enviro Infra Engineers

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Enviro Infra Engineers insiders own 72% of the company, worth about ₹31b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Enviro Infra Engineers Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Enviro Infra Engineers shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Enviro Infra Engineers insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Enviro Infra Engineers. In terms of investment risks, we've identified 1 warning sign with Enviro Infra Engineers and understanding this should be part of your investment process.

Of course Enviro Infra Engineers 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.