Stock Analysis

Insiders who bought stock earlier this year lose -₹6.6m as Piramal Enterprises Limited (NSE:PEL) drops to ₹209b

  •  Updated
NSEI:PEL
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Insiders who bought ₹10m worth of Piramal Enterprises Limited's (NSE:PEL) stock at an average buy price of ₹2,556 over the last year may be disappointed by the recent 9.6% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth ₹3.4m which is not ideal.

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.

If you're not interested in researching PEL's insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!

Piramal Enterprises Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Jairam Sridharan for ₹10m worth of shares, at about ₹2,582 per share. That means that an insider was happy to buy shares at above the current price of ₹877. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Jairam Sridharan was the only individual insider to buy during the last year.

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!

insider-trading-volume
NSEI:PEL Insider Trading Volume September 28th 2022

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

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. From our data, it seems that Piramal Enterprises insiders own 0.4% of the company, worth about ₹794m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Piramal Enterprises Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Piramal Enterprises shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Piramal Enterprises insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Piramal Enterprises. For instance, we've identified 3 warning signs for Piramal Enterprises (2 are concerning) 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, but not derivative transactions.

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

Find out whether Piramal Enterprises 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.

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About NSEI:PEL

Piramal Enterprises

Piramal Enterprises Limited operates in financial services and pharmaceuticals businesses in India, North America, Europe, Japan, and internationally.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth0
Past Performance3
Financial Health2
Dividends5

Read more about these checks in the individual report sections or in our analysis model.

Established dividend payer and fair value.