Founder of Shivalic Power Control Amit Jindal Buys More Stock

Even if it's not a huge purchase, we think it was good to see that Amit Jindal, the Founder of Shivalic Power Control Limited (NSE:SPCL) recently shelled out ₹8.3m to buy stock, at ₹183 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Shivalic Power Control

Shivalic Power Control Insider Transactions Over The Last Year

Notably, that recent purchase by Founder Amit Jindal was not the only time they bought Shivalic Power Control shares this year. Earlier in the year, they paid ₹241 per share in a ₹8.7m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹184). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Amit Jindal was the only individual insider to buy shares in the last twelve months.

Amit Jindal purchased 86.40k shares over the year. The average price per share was ₹210. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Shivalic Power Control Boast High Insider Ownership?

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. Shivalic Power Control insiders own 71% of the company, currently worth about ₹3.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Shivalic Power Control Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Shivalic Power Control. One for the watchlist, at least! 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. Our analysis shows 2 warning signs for Shivalic Power Control (1 is potentially serious!) and we strongly recommend you look at these before investing.

Of course Shivalic Power Control 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.