Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial

Insiders Buying The Big Dip


Corporate India is betting on itself. The level of insider buying has reached dizzying heights in the last two months, with more than 20 announcements a day. Insider trading regulations require that promoters tell the exchange when they buy or sell shares, even if they buy 1 more share. Prominent insider buying noted in:

KS Oils: Ramesh Chand Garg, a promoter and chairman of the oil manufacturer, has bought nearly 4% of the company since Jan 2008, spending nearly 80 cr. according to my calculations. The price is at Rs. 62 or such, P/E around 15.

IndiaBulls: The brokerage and financial service provider has been hit hard, falling to Rs. 388 from 1,000 in Jan. Saurabh Mittal, Sameer Gehlaut and Rajiv Rattan, the three founders, have bought a HUGE number of shares since Jan, and my conservative calculations show they have put in nearly 300 cr. altogether in buying shares from the Market, since Jan. The P/E is around 14-16 on a trailing basis.

Man Industries: Ramesh Mansukhani has bought shares little by little, bit by bit. I haven’t calculated how much – this is probably not more than 20 crores – but it’s good to see. The share is at Rs. 108, P/E around 7.5.

Apart from these, REL is buying back shares (price of 1600 max), lots of small company directors are buying (but very small amounts). At Moneyoga we’re trying to get this all together so we can see significant purchases over a period of time.

Some information may be misleading – for instance Deepak Parekh of HDFC sold about 15 crore worth shares recently, but it looks like that is just an FBT offsetting transaction (he got shares worth nearly 50 cr. as ESOPs, for which he would be liable for FBT). But it’s interesting all the same.


Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial