Jagdish Arora Spends ₹11m On Som Distilleries & Breweries Stock

Investors who take an interest in Som Distilleries & Breweries Limited (NSE:SDBL) should definitely note that the Chairman & MD, Jagdish Arora, recently paid ₹287 per share to buy ₹11m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Som Distilleries & Breweries

Som Distilleries & Breweries Insider Transactions Over The Last Year

In fact, the recent purchase by Jagdish Arora was the biggest purchase of Som Distilleries & Breweries 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 ₹292. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the Som Distilleries & Breweries insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid ₹93m for 416.40k shares. But they sold 35.87k shares for ₹11m. In the last twelve months there was more buying than selling by Som Distilleries & Breweries insiders. The average buy price was around ₹223. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.

Does Som Distilleries & Breweries Boast High 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. We usually like to see fairly high levels of insider ownership. Som Distilleries & Breweries insiders own about ₹12b worth of shares (which is 51% of the company). 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 Does This Data Suggest About Som Distilleries & Breweries Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Som Distilleries & Breweries. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Som Distilleries & Breweries (1 is concerning) you should be aware of.

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.