Insider Stock Buying Reaches ₹1.05b On Borosil Renewables

Over the last year, a good number of insiders have significantly increased their holdings in Borosil Renewables Limited (NSE:BORORENEW). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Borosil Renewables Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Vice-Chairman of the Board Shreevar Kheruka for ₹750m worth of shares, at about ₹530 per share. That means that even when the share price was higher than ₹462 (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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 1.98m shares worth ₹1.1b. But insiders sold 12.00k shares worth ₹6.7m. In the last twelve months there was more buying than selling by Borosil Renewables insiders. 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!

View our latest analysis for Borosil Renewables

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Borosil Renewables Insiders Bought Stock Recently

It's good to see that Borosil Renewables insiders have made notable investments in the company's shares. In total, insiders bought ₹1.0b worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Borosil Renewables insiders own 29% of the company, currently worth about ₹18b based on the recent share price. 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 recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Borosil Renewables insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Borosil Renewables. While conducting our analysis, we found that Borosil Renewables has 2 warning signs and it would be unwise to ignore these.

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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.