The Indian stock market has shown robust performance, with a 44% increase over the last 12 months and a steady rise of 1.0% in just the past week. In this context, companies with high insider ownership and strong earnings growth are particularly compelling, as they often signal confidence from those closest to the company's operations.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Kalpataru Projects International Limited specializes in engineering, procurement, and construction (EPC) services for various sectors such as buildings, factories, power infrastructure, and transportation both in India and globally, with a market capitalization of approximately ₹186.61 billion.
Operations: The company's revenue is primarily generated from its Engineering, Procurement, and Construction (EPC) segment, which brought in ₹191.48 billion, and Development Projects contributing ₹2.80 billion.
Insider Ownership: 13.4%
Earnings Growth Forecast: 25.5% p.a.
Kalpataru Projects International Limited (KPIL) is poised for substantial growth with earnings expected to increase by 25.52% annually over the next three years, outpacing the broader Indian market's forecasted growth. This growth is supported by a robust revenue increase of 13.1% per year, also surpassing market averages. However, KPIL faces challenges as its interest payments are not well covered by earnings and its return on equity is projected to remain low at 19.6%. Additionally, despite a significant proposed final dividend of INR 8 per share for FY 2023-24, the company has an unstable dividend track record which might concern investors looking for consistent returns.
Overview: S.J.S. Enterprises Limited specializes in designing, developing, manufacturing, selling, and exporting decorative aesthetics for the automotive and consumer appliance industries, both domestically and internationally, with a market capitalization of ₹24.17 billion.
Operations: The company generates ₹6.28 billion from the manufacturing and selling of self-adhesive labels.
Insider Ownership: 24.8%
Earnings Growth Forecast: 21.7% p.a.
S.J.S. Enterprises exhibits promising growth with earnings forecasted to rise by 21.7% annually, outperforming the broader Indian market's expectation of 16% yearly growth. This is complemented by a revenue increase forecast at 17.3% annually, also above the Indian market average of 9.6%. Insider activities have been positive, with more shares bought than sold recently, indicating confidence from within. However, its projected return on equity remains modest at 18.5%, suggesting some challenges in efficiency or profitability might persist.
Overview: Varun Beverages Limited operates as a franchisee of PepsiCo, producing and distributing carbonated soft drinks and non-carbonated beverages, with a market capitalization of approximately ₹2.11 billion.
Operations: The company generates revenue primarily through the manufacturing and sale of beverages, totaling ₹164.67 billion.
Insider Ownership: 36.4%
Earnings Growth Forecast: 24.7% p.a.
Varun Beverages, a growth-focused company with high insider ownership in India, is set to expand its operations, evidenced by the recent approval to establish a subsidiary in Zimbabwe. The firm's revenue and earnings have shown robust growth, with revenues increasing to INR 44.06 billion this quarter from INR 39.63 billion last year and net income rising to INR 5.37 billion from INR 4.29 billion. Expected annual earnings growth at 24.7% surpasses the Indian market forecast of 16%. Despite these positives, the company carries a high level of debt which could pose financial management challenges.
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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.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.
