Pradeep Mertia Spends ₹32m On Gretex Industries Stock

Investors who take an interest in Gretex Industries Limited (NSE:GRETEX) should definitely note that the Chief Financial Officer, Pradeep Mertia, recently paid ₹128 per share to buy ₹32m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Gretex Industries

Gretex Industries Insider Transactions Over The Last Year

In fact, the recent purchase by Pradeep Mertia was the biggest purchase of Gretex Industries shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of ₹138. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Pradeep Mertia was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Gretex Industries is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Gretex Industries

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. Gretex Industries insiders own about ₹175m worth of shares. That equates to 30% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Gretex Industries Insiders?

The recent insider purchase is 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 Gretex Industries. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gretex Industries. Be aware that Gretex Industries is showing 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

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.

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