Insiders of Sigachi Industries Getting Good Value On Their ₹388.9m Investment

Sigachi Industries Limited (NSE:SIGACHI) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a ₹1.4b rise in the company's market capitalisation, translating to a gain of 160% on their initial investment. As a result, their original purchase of ₹388.9m worth of stock is now worth ₹1.01b.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

We check all companies for important risks. See what we found for Sigachi Industries in our free report.

Sigachi Industries Insider Transactions Over The Last Year

The CEO, MD & Director Amit Sinha made the biggest insider purchase in the last 12 months. That single transaction was for ₹389m worth of shares at a price of ₹26.10 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹44.03. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Sigachi Industries

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. We usually like to see fairly high levels of insider ownership. Sigachi Industries insiders own 44% of the company, currently worth about ₹6.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Sigachi Industries Tell Us?

The fact that there have been no Sigachi Industries insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Sigachi Industries insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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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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.