Stock Analysis

Aarti Mhatre of S Chand and Company Limited (NSE:SCHAND) Just Spent ₹346k On Shares

NSEI:SCHAND
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Whilst it may not be a huge deal, we thought it was good to see that Aarti Mhatre, who is a company insider, recently bought ₹346k worth of stock, for ₹69.20 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 50%.

See our latest analysis for S Chand

The Last 12 Months Of Insider Transactions At S Chand

While no particular insider transaction stood out, we can still look at the overall trading.

In the last twelve months S Chand insiders were buying shares, but not selling. Their average price was about ₹55.13. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price of ₹74.30. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:SCHAND Insider Trading Volume February 23rd 2021

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).

Does S Chand Boast High Insider Ownership?

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. S Chand insiders own 58% of the company, currently worth about ₹1.6b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About S Chand Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about S Chand. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing S Chand. In terms of investment risks, we've identified 1 warning sign with S Chand and understanding it should be part of your investment process.

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, but not derivative transactions.

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