Dhanuka Agritech's Market Cap Up ₹6.4b Following Year Of Insider Stock Buying

Insiders who bought Dhanuka Agritech Limited (NSE:DHANUKA) stock in the last 12 months were richly rewarded last week. The company's market value increased by ₹6.4b as a result of the stock's 12% gain over the same period. As a result, their original purchase of ₹9.76m worth of stock is now worth ₹13.4m.

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 Dhanuka Agritech

Dhanuka Agritech Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Group Executive Chairman Ram Agarwal bought ₹9.8m worth of shares at a price of ₹967 per share. Even though the purchase was made at a significantly lower price than the recent price (₹1,324), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Dhanuka Agritech

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Dhanuka Agritech insiders own about ₹1.4b worth of shares. That equates to 2.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Dhanuka Agritech Insiders?

It doesn't really mean much that no insider has traded Dhanuka Agritech shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Dhanuka Agritech insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dhanuka Agritech. In terms of investment risks, we've identified 1 warning sign with Dhanuka Agritech and understanding this should be part of your investment process.

But note: Dhanuka Agritech may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.