Despite Nahar Poly Films' Pullback, Insiders Still Gained ₹1.5m

Insiders who purchased Nahar Poly Films Limited (NSE:NAHARPOLY) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. Even after accounting for the recent loss, the ₹7.25m worth of stock purchased by them is now worth ₹8.77m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Nahar Poly Films

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Dinesh Oswal for ₹5.9m worth of shares, at about ₹212 per share. We do like to see buying, but this purchase was made at well below the current price of ₹270. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Nahar Poly Films insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Nahar Poly Films

Nahar Poly Films 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 Of Nahar Poly Films

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Nahar Poly Films insiders own 4.6% of the company, worth about ₹302m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Nahar Poly Films Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Nahar Poly Films insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nahar Poly Films. Our analysis shows 3 warning signs for Nahar Poly Films (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.

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.

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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.