Gokul Refoils & Solvent Reaches ₹6.1b Market Cap Benefiting Insider Stock Buying

Gokul Refoils & Solvent Limited (NSE:GOKUL) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a ₹632m addition to the company’s market value. Put another way, the original ₹33.7m acquisition is now worth ₹46.0m.

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.

View our latest analysis for Gokul Refoils & Solvent

The Last 12 Months Of Insider Transactions At Gokul Refoils & Solvent

In the last twelve months, the biggest single purchase by an insider was when Chairman Balvantsinh Rajput bought ₹21m worth of shares at a price of ₹46.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹61.33. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Balvantsinh Rajput bought 750.43k shares over the last 12 months at an average price of ₹44.85. 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!

Gokul Refoils & Solvent is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

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. Gokul Refoils & Solvent insiders own 63% of the company, currently worth about ₹3.8b 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 Gokul Refoils & Solvent Insiders?

It doesn't really mean much that no insider has traded Gokul Refoils & Solvent shares in the last quarter. 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 Gokul Refoils & Solvent insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gokul Refoils & Solvent. Every company has risks, and we've spotted 4 warning signs for Gokul Refoils & Solvent (of which 3 are concerning!) you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.