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Trade Alert: The Executive Chairman Of Indian Terrain Fashions Limited (NSE:INDTERRAIN), Venkatesh Rajagopal, Has Just Spent ₹5.2m Buying 3.7% More Shares

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Even if it’s not a huge purchase, we think it was good to see that Venkatesh Rajagopal, the Executive Chairman of Indian Terrain Fashions Limited (NSE:INDTERRAIN) recently shelled out ₹5.2m to buy stock, at ₹29.76 per share. Although the purchase is not a big one, increasing their shareholding by only 3.7%, it can be interpreted as a good sign.

View our latest analysis for Indian Terrain Fashions

The Last 12 Months Of Insider Transactions At Indian Terrain Fashions

In fact, the recent purchase by Venkatesh Rajagopal was the biggest purchase of Indian Terrain Fashions shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, at around the current price, which is ₹31.75. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. Happily, the Indian Terrain Fashions insiders decided to buy shares at close to current prices.

In the last twelve months Indian Terrain Fashions insiders were buying shares, but not selling. 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:INDTERRAIN Insider Trading Volume April 5th 2021

Indian Terrain Fashions 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 of Indian Terrain Fashions

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Indian Terrain Fashions insiders own 31% of the company, worth about ₹404m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Indian Terrain Fashions Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Indian Terrain Fashions insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing 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. Case in point: We’ve spotted 4 warning signs for Indian Terrain Fashions you should be aware of, and 1 of them is potentially serious.

But note: Indian Terrain Fashions may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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This article by Simply Wall St is general in nature. 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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