Founder Balusamy Darmini Just Bought A Handful Of Shares In Thangamayil Jewellery Limited (NSE:THANGAMAYL)

Whilst it may not be a huge deal, we thought it was good to see that the Thangamayil Jewellery Limited (NSE:THANGAMAYL) Founder, Balusamy Darmini, recently bought ₹4.0m worth of stock, for ₹443 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Thangamayil Jewellery

The Last 12 Months Of Insider Transactions At Thangamayil Jewellery

The Joint MD & Whole-Time Director N. Kumar made the biggest insider purchase in the last 12 months. That single transaction was for ₹11m worth of shares at a price of ₹339 each. We do like to see buying, but this purchase was made at well below the current price of ₹467. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Thangamayil Jewellery insiders were buying shares, but not selling. 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!

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Thangamayil Jewellery insiders own about ₹2.7b worth of shares (which is 44% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Thangamayil Jewellery Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Thangamayil Jewellery insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 example, Thangamayil Jewellery has 5 warning signs (and 2 which are significant) we think you should know about.

But note: Thangamayil Jewellery may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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