Executive Chairman & MD Siddhartha Burman Just Bought A Handful Of Shares In Khadim India Limited (NSE:KHADIM)

Whilst it may not be a huge deal, we thought it was good to see that the Khadim India Limited (NSE:KHADIM) Executive Chairman & MD, Siddhartha Burman, recently bought ₹1.2m worth of stock, for ₹120 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.

See our latest analysis for Khadim India

The Last 12 Months Of Insider Transactions At Khadim India

In fact, the recent purchase by Executive Chairman & MD Siddhartha Burman was not their only acquisition of Khadim India shares this year. Earlier in the year, they paid ₹150 per share in a ₹1.5m purchase. That means that even when the share price was higher than ₹125 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Khadim India insiders bought shares during the last year, they didn't sell. They paid about ₹126 on average. This is nice to see since it implies that insiders might see value around current prices (around ₹125). You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Khadim India is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Khadim India

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 10% of Khadim India shares, worth about ₹227m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Do The Khadim India Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Khadim India. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Khadim India (including 1 which is significant).

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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