Stock Analysis

Trade Alert: The Founder Of Bajaj HealthCare Limited (NSE:BAJAJHCARE), Sajankumar Bajaj, Has Just Spent ₹4.0m Buying A Few More Shares

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Even if it's not a huge purchase, we think it was good to see that Sajankumar Bajaj, the Founder of Bajaj HealthCare Limited (NSE:BAJAJHCARE) recently shelled out ₹4.0m to buy stock, at ₹289 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Bajaj HealthCare

The Last 12 Months Of Insider Transactions At Bajaj HealthCare

Notably, that recent purchase by Founder Sajankumar Bajaj was not the only time they bought Bajaj HealthCare shares this year. Earlier in the year, they paid ₹390 per share in a ₹6.7m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹307). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Bajaj HealthCare insiders may have bought shares in the last year, but they didn't sell any. They paid about ₹342 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

NSEI:BAJAJHCARE Insider Trading Volume April 1st 2023

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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Bajaj HealthCare insiders own 68% of the company, worth about ₹5.7b. 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 Do The Bajaj HealthCare Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Bajaj HealthCare. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bajaj HealthCare. For example, Bajaj HealthCare has 3 warning signs (and 1 which can't be ignored) we think you should know about.

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, but not derivative transactions.

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