Insider Spends ₹37m Buying More Shares In NCL Industries

Investors who take an interest in NCL Industries Limited (NSE:NCLIND) should definitely note that the Executive Vice Chairman, Ravi Kalidindi, recently paid ₹213 per share to buy ₹37m worth of the stock. Although the purchase only increased their holding by 6.6%, it is still a solid purchase in our view.

See our latest analysis for NCL Industries

NCL Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the MD, Executive Director of Corporate Affairs & Executive Director, Gautam Kalidindi, sold ₹72m worth of shares at a price of ₹184 per share. That means that even when the share price was below the current price of ₹214, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 14% of Gautam Kalidindi's holding.

Over the last year, we can see that insiders have bought 726.49k shares worth ₹144m. But they sold 617.00k shares for ₹119m. In total, NCL Industries insiders bought more than they sold over the last year. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does NCL Industries 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. NCL Industries insiders own about ₹3.7b worth of shares. That equates to 38% 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 Do The NCL Industries Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. 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 NCL Industries. Looks promising! 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. While conducting our analysis, we found that NCL Industries has 1 warning sign and it would be unwise to ignore it.

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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