Insider Buying: The Nilkamal Limited (NSE:NILKAMAL) MD & Executive Director Just Bought ₹2.7m Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Nilkamal Limited (NSE:NILKAMAL) MD & Executive Director, Hiten Parekh, recently bought ₹2.7m worth of stock, for ₹1,829 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Nilkamal

Nilkamal Insider Transactions Over The Last Year

The Chairman Emeritus Vamanrai Parekh made the biggest insider purchase in the last 12 months. That single transaction was for ₹17m worth of shares at a price of ₹988 each. We do like to see buying, but this purchase was made at well below the current price of ₹1,862. 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.

While Nilkamal insiders bought shares during the last year, they didn't sell. 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 Nilkamal

Many investors like to check how much of a company is owned by 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. It's great to see that Nilkamal insiders own 56% of the company, worth about ₹16b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Nilkamal Tell Us?

It's certainly positive to see the recent insider purchase. 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 Nilkamal. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for Nilkamal you should know about.

But note: Nilkamal 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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