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Insiders saw their ₹50m investment bump up to ₹115m after United Polyfab Gujarat Limited (NSE:UNITEDPOLY) soared 28% last week


United Polyfab Gujarat Limited (NSE:UNITEDPOLY) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 28%, resulting in a ₹496m rise in the company’s market capitalisation. As a result, the stock they originally bought for ₹50m is now worth ₹115m.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for United Polyfab Gujarat

United Polyfab Gujarat Insider Transactions Over The Last Year

The Chairman of the Board & MD Gagan Nirmal Mittal made the biggest insider purchase in the last 12 months. That single transaction was for ₹32m worth of shares at a price of ₹47.62 each. Even though the purchase was made at a significantly lower price than the recent price (₹110), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.

Gagan Nirmal Mittal bought a total of 1.05m shares over the year at an average price of ₹47.81. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NSEI:UNITEDPOLY Insider Trading Volume December 11th 2022

United Polyfab Gujarat 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 United Polyfab Gujarat

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It’s great to see that United Polyfab Gujarat insiders own 43% of the company, worth about ₹994m. 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 Does This Data Suggest About United Polyfab Gujarat Insiders?

There haven’t been any insider transactions in the last three months — that doesn’t mean much. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like United Polyfab Gujarat insiders think the business has merit. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For example, United Polyfab Gujarat has 4 warning signs (and 2 which make us uncomfortable) we think you should know about.

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, but not derivative transactions.

Valuation is complex, but we’re helping make it simple.

Find out whether United Polyfab Gujarat is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.


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