Insider Buying: The Khadim India Limited (NSE:KHADIM) Executive Chairman & MD Just Bought ₹132k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Siddhartha Burman, the Executive Chairman & MD of Khadim India Limited (NSE:KHADIM) recently shelled out ₹132k to buy stock, at ₹132 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 Khadim India

Khadim India Insider Transactions Over The Last Year

Executive Chairman & MD Siddhartha Burman previously made an even bigger purchase of ₹1.5m worth of shares at a price of ₹150 per share. That means that an insider was happy to buy shares at above the current price of ₹115. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay 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.

Khadim India insiders may have bought shares in the last year, but they didn't sell any. Their average price was about ₹130. I'd consider this a positive as it suggests insiders see value at around the current price, which is ₹115. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Khadim India

For a common shareholder, it is worth checking how many shares are held by company 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 ₹207m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Khadim India Insiders?

It is good to see recent purchasing. 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. When combined with notable insider ownership, these factors suggest Khadim India insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Khadim India (1 can't be ignored) you should be aware of.

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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