Ambani Orgochem Insider Buyers See Boost After Market Cap Rose ₹77m

Ambani Orgochem Limited (NSE:AMBANIORGO) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10%, resulting in a ₹77m rise in the company's market capitalisation, translating to a gain of 62% on their initial investment. As a result, the stock they originally bought for ₹48.0m is now worth ₹77.9m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Ambani Orgochem

The Last 12 Months Of Insider Transactions At Ambani Orgochem

In the last twelve months, the biggest single purchase by an insider was when MD & Director Rakesh Shah bought ₹48m worth of shares at a price of ₹80.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹130. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Ambani Orgochem is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 Ambani Orgochem insiders own 73% of the company, worth about ₹609m. 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 Do The Ambani Orgochem 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Ambani Orgochem. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ambani Orgochem. Be aware that Ambani Orgochem is showing 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

Of course Ambani Orgochem 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 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.