Insiders of KCP Getting Good Value On Their ₹74.4m Investment

The KCP Limited (NSE:KCP) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10%, resulting in a ₹2.6b rise in the company's market capitalisation, translating to a gain of 14% on their initial investment. As a result, the stock they originally bought for ₹74.4m is now worth ₹84.9m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At KCP

The insider Subbarao Vallabhaneni made the biggest insider purchase in the last 12 months. That single transaction was for ₹37m worth of shares at a price of ₹193 each. We do like to see buying, but this purchase was made at well below the current price of ₹217. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

KCP insiders may have bought shares in the last year, but they didn't sell any. 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!

See our latest analysis for KCP

KCP 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 Of KCP

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. Insiders own 18% of KCP shares, worth about ₹5.0b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At KCP Tell Us?

The fact that there have been no KCP insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, KCP insiders feel good about the company's future. Along with insider transactions, I recommend checking if KCP is growing revenue. This free chart of historic revenue and earnings should make that easy.

Of course KCP 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.

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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.