Yogesh Laddha Bought 4.4% More Shares In Manomay Tex India

Whilst it may not be a huge deal, we thought it was good to see that the Manomay Tex India Limited (NSE:MANOMAY) Promoter, Yogesh Laddha, recently bought ₹5.7m worth of stock, for ₹170 per share. Although the purchase is not a big one, increasing their shareholding by only 4.4%, it can be interpreted as a good sign.

Check out our latest analysis for Manomay Tex India

Manomay Tex India Insider Transactions Over The Last Year

In fact, the recent purchase by Yogesh Laddha was the biggest purchase of Manomay Tex India shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is ₹170. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Manomay Tex India share holders is that insiders were buying at near the current price.

While Manomay Tex India insiders bought shares during the last year, they didn't sell. The average buy price was around ₹142. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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 Manomay Tex India insiders own 55% of the company, worth about ₹1.7b. 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 Do The Manomay Tex India Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Manomay Tex India insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Manomay Tex India. Every company has risks, and we've spotted 3 warning signs for Manomay Tex India (of which 1 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.