Tara Chand Infralogistic Solutions Insiders May Regret Not Buying More, Market Cap Hits ₹6.6b

Insiders who bought Tara Chand Infralogistic Solutions Limited (NSE:TARACHAND) stock in the last 12 months were richly rewarded last week. The company's market value increased by ₹1.2b as a result of the stock's 22% gain over the same period. As a result, their original purchase of ₹37.6m worth of stock is now worth ₹58.0m.

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.

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The Last 12 Months Of Insider Transactions At Tara Chand Infralogistic Solutions

Over the last year, we can see that the biggest insider purchase was by Chief Engineering Arnav Aggarwal for ₹8.7m worth of shares, at about ₹53.65 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹83.85. 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.

In the last twelve months Tara Chand Infralogistic Solutions insiders were buying shares, but not selling. 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!

See our latest analysis for Tara Chand Infralogistic Solutions

Tara Chand Infralogistic Solutions 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tara Chand Infralogistic Solutions insiders own 66% of the company, currently worth about ₹4.4b based on the recent share price. 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 Tara Chand Infralogistic Solutions Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. 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 Tara Chand Infralogistic Solutions insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Tara Chand Infralogistic Solutions has 4 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.