Insider Buying: Borosil Renewables Non-Executive Vice-Chairman of the Board Bought ₹54m Of Shares

Those following along with Borosil Renewables Limited (NSE:BORORENEW) will no doubt be intrigued by the recent purchase of shares by Shreevar Kheruka, Non-Executive Vice-Chairman of the Board of the company, who spent a stonking ₹54m on stock at an average price of ₹561. While that only increased their holding size by 0.3%, it is still a big swing by our standards.

View our latest analysis for Borosil Renewables

Borosil Renewables Insider Transactions Over The Last Year

Notably, that recent purchase by Shreevar Kheruka is the biggest insider purchase of Borosil Renewables shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of ₹574. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Borosil Renewables share holders is that an insider was buying at near the current price. Shreevar Kheruka was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Borosil Renewables is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Borosil Renewables insiders own about ₹22b worth of shares (which is 29% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Borosil Renewables Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Borosil Renewables. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Borosil Renewables and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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