Cement News

Prem Bhajanka Is The MD & Director of Star Cement Limited (NSE:STARCEMENT) And Just Spent ₹1.1m On Shares


Even if it’s not a huge purchase, we think it was good to see that Prem Bhajanka, the MD & Director of Star Cement Limited (NSE:STARCEMENT) recently shelled out ₹1.1m to buy stock, at ₹93.83 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn’t a massive purchase by absolute value, either.

However if you’d rather see where the opportunities and risks are within STARCEMENT’s industry, you can check out our analysis on the IN Basic Materials industry.

Star Cement Insider Transactions Over The Last Year

The CEO, MD & Chairman Sajjan Bhajanka made the biggest insider purchase in the last 12 months. That single transaction was for ₹21m worth of shares at a price of ₹91.29 each. Even though the purchase was made at a significantly lower price than the recent price (₹102), 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.

In the last twelve months insiders purchased 1.51m shares for ₹137m. But they sold 194.40k shares for ₹19m. In total, Star Cement insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NSEI:STARCEMENT Insider Trading Volume September 11th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Star Cement

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Star Cement insiders own 65% of the company, currently worth about ₹27b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Star Cement Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Star Cement. One for the watchlist, at least! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.



Source link