Stock Analysis

With eMudhra Limited's (NSE:EMUDHRA)) price down 12% this week, insiders might find some solace having sold ₹238m worth of shares earlier this year.

Source: Shutterstock

Insiders at eMudhra Limited (NSE:EMUDHRA) sold ₹238m worth of stock at an average price of ₹361 a share over the past year, making the most of their investment. The company’s market cap plunged by ₹2.3b after price dropped by 12% last week but insiders were able to limit their loss to an extent.

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.

See our latest analysis for eMudhra

eMudhra Insider Transactions Over The Last Year

The Senior VP & Head of Channel Sales, Ashwin Jansale, made the biggest insider sale in the last 12 months. That single transaction was for ₹29m worth of shares at a price of ₹369 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹225. So it is hard to draw any strong conclusion from it.

Insiders in eMudhra didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NSEI:EMUDHRA Insider Trading Volume March 17th 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of eMudhra

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that eMudhra insiders own 53% of the company, worth about ₹9.3b. 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 eMudhra Insiders?

It doesn't really mean much that no insider has traded eMudhra shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the eMudhra insiders selling. 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. You'd be interested to know, that we found 1 warning sign for eMudhra and we suggest you have a look.

Of course eMudhra 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, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether eMudhra is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis