Company management and large investors tend to have unparalleled views into the operations of their own company compared to a typical individual investor. When these insiders buy, their stock tends to outperform the market afterwards (The MIT Press, 1998). This is because their access to information aids them in more informed decision-making. However, its certainly not enough to base your investment decision based on insider transactions, but these events do warrant a deeper dive into the stocks.
Mangalam Cement Limited (BSE:502157)
Mangalam Cement Limited manufactures and sells cement in India. Started in 1976, and currently run by , the company provides employment to 1,067 people and has a market cap of INR ₹7.88B, putting it in the mid-cap category.
Mangalam Cement Limited’s (BSE:502157) insiders have invested 15,000 shares in the large-cap stocks within the past three months. In total, individual insiders own over 3 million shares in the business, which makes up around 11.82% of total shares outstanding.
The entity that bought on the open market in the last three months was
Vidula Consultancy Service Ltd. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
Analysts anticipate an impressive double-digit top-line growth next year, which appears to flow through to a large earnings growth rate of 167.84%. If insiders believe these benefits are defensible, this could be a motivation for the net buying activity. More detail on Mangalam Cement here.
eClerx Services Limited (BSE:532927)
eClerx Services Limited provides data management, analytics, and process outsourcing services in the United States, the United Kingdom, Europe, and the Asia Pacific. Started in 2000, and now run by , the company now has 9,000 employees and has a market cap of INR ₹51.17B, putting it in the large-cap group.
eClerx Services Limited (BSE:532927) is one of India’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in 154,891 shares during this period. In total, individual insiders own over 20 million shares in the business, which makes up around 51.14% of total shares outstanding.
The entity that bought on the open market in the last three months was
eclerx Services Limited Employee Welfare Trust. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.