Over the last 7 days, the Indian market has risen 1.4%, driven by gains of 1.6% in the Financials sector, and it is up 46% over the last 12 months with earnings forecasted to grow by 17% annually. In this favorable environment, companies with high insider ownership and strong revenue growth stand out as potentially good investments due to their alignment of interests and proven performance.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dixon Technologies (India) Limited offers electronic manufacturing services in India and has a market cap of ₹791.49 billion.
Operations: Dixon Technologies' revenue segments include Home Appliances (₹12.51 billion), Lighting Products (₹7.92 billion), Mobile & EMS Division (₹143.16 billion), and Consumer Electronics & Appliances (₹41.21 billion).
Insider Ownership: 24.6%
Revenue Growth Forecast: 23.6% p.a.
Dixon Technologies (India) Limited, a growth company with high insider ownership, reported strong financial performance for Q1 2024, with revenue of ₹65.88 billion and net income of ₹1.34 billion—both nearly doubling from the previous year. The company's earnings are forecast to grow significantly at 36.57% annually over the next three years, outpacing the Indian market's average growth rate. Additionally, Dixon recently appointed Sunil Ranjhan as Chief Human Resource Officer to bolster its management team further.
Overview: Godrej Consumer Products Limited is a fast-moving consumer goods company that manufactures and markets personal care and home care products across India, Africa, Indonesia, the Middle East, the United States of America, and internationally with a market cap of ₹1.49 trillion.
Operations: The company's revenue primarily comes from manufacturing personal, household, and hair care products, totaling ₹139.79 billion.
Insider Ownership: 13.8%
Revenue Growth Forecast: 10.1% p.a.
Godrej Consumer Products is forecast to grow revenue at 10.1% annually, slightly above the Indian market average. Earnings are expected to increase by 58.76% per year, with profitability anticipated within three years. Recent management changes include the appointment of Swati Bhattacharya as Global Head - Lightbox Creative Lab and Ashwin Moorthy as Global Head of Category Direction and Innovation, enhancing leadership for future growth initiatives such as their new Pet Care business venture.
Overview: Varun Beverages Limited, with a market cap of ₹2.05 trillion, operates as the franchisee for PepsiCo's carbonated soft drinks and non-carbonated beverages.
Operations: The company generates revenue primarily from the manufacturing and sale of beverages, amounting to ₹180.52 billion.
Insider Ownership: 36.3%
Revenue Growth Forecast: 15.4% p.a.
Varun Beverages has demonstrated strong revenue growth, with recent quarterly sales reaching ₹73.34 billion compared to ₹57.41 billion a year ago. Earnings per share increased from ₹7.65 to ₹9.64 in the same period, reflecting robust profitability. Insider ownership remains significant, ensuring aligned interests between management and shareholders. Recent amendments to the company's Memorandum of Association and a proposed stock split indicate strategic financial restructuring aimed at enhancing liquidity and shareholder value further.
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.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.
Companies discussed in this article include NSEI:DIXON NSEI:GODREJCP and NSEI:VBL.
