Tirupati Forge Reaches ₹9.3b Market Cap Benefiting Insider Stock Buying
Tirupati Forge Limited (NSE:TIRUPATIFL) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 16%, resulting in a ₹1.3b rise in the company's market capitalisation, translating to a gain of 226% on their initial investment. As a result, the stock they originally bought for ₹30.0m is now worth ₹97.9m.
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.
Tirupati Forge Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman & MD Hiteshkumar Thummar bought ₹30m worth of shares at a price of ₹24.00 per share. We do like to see buying, but this purchase was made at well below the current price of ₹78.28. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Tirupati Forge
Tirupati Forge is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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's great to see that Tirupati Forge insiders own 54% of the company, worth about ₹5.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Tirupati Forge Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Tirupati Forge insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tirupati Forge. To help with this, we've discovered 3 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Tirupati Forge.
But note: Tirupati Forge 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 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.