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Trade Alert: The Chairman of the Board & MD Of United Polyfab Gujarat Limited (NSE:UNITEDPOLY), Gagan Nirmal Mittal, Has Just Spent ₹5.6m Buying 1.9% More Shares


Whilst it may not be a huge deal, we thought it was good to see that the United Polyfab Gujarat Limited (NSE:UNITEDPOLY) Chairman of the Board & MD, Gagan Nirmal Mittal, recently bought ₹5.6m worth of stock, for ₹42.13 per share. Although the purchase is not a big one, increasing their shareholding by only 1.9%, it can be interpreted as a good sign.

View our latest analysis for United Polyfab Gujarat

The Last 12 Months Of Insider Transactions At United Polyfab Gujarat

Notably, that recent purchase by Chairman of the Board & MD Gagan Nirmal Mittal was not the only time they bought United Polyfab Gujarat shares this year. Earlier in the year, they paid ₹8.60 per share in a ₹7.7m purchase. We do like to see buying, but this purchase was made at well below the current price of ₹50.25. 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.

Gagan Nirmal Mittal bought 1.03m shares over the last 12 months at an average price of ₹12.92. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NSEI:UNITEDPOLY Insider Trading Volume June 24th 2022

United Polyfab Gujarat is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. It appears that United Polyfab Gujarat insiders own 38% of the company, worth about ₹403m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About United Polyfab Gujarat Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about United Polyfab Gujarat. One for the watchlist, at least! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing United Polyfab Gujarat. For instance, we’ve identified 3 warning signs for United Polyfab Gujarat (1 is potentially serious) you should be aware of.

Of course United Polyfab Gujarat may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.



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