The Indian market has climbed 1.7% in the last 7 days and is up 46% over the last 12 months, with earnings forecasted to grow by 17% annually. In such a robust environment, growth companies with high insider ownership can be particularly attractive as they often signal strong confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dixon Technologies (India) Limited provides electronic manufacturing services in India and has a market cap of ₹801.42 billion.
Operations: Dixon Technologies (India) Limited generates revenue from several segments including 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%
Dixon Technologies (India) has demonstrated strong growth, with earnings increasing by 55.3% over the past year and revenue doubling to ₹65.88 billion for Q1 2024. Forecasts indicate annual earnings growth of 36.6%, outpacing the Indian market, and revenue growth of 23.6% per year. The recent appointment of Mr. Sunil Ranjhan as Chief Human Resource Officer is expected to bolster their HR strategy, enhancing overall operational efficiency amidst this expansion phase.
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 generates ₹139.79 billion from the manufacturing of personal, household, and hair care products.
Insider Ownership: 13.8%
Godrej Consumer Products shows strong insider ownership and is expanding into the high-growth Pet Care market with a ₹5 billion investment over five years. Recent management changes include Swati Bhattacharya as Global Head of Lightbox Creative Lab and Ashwin Moorthy as Global Head of Category Direction and Innovation. Despite a slight dip in revenue to ₹34.09 billion for Q1 2024, net income rose significantly to ₹4.51 billion, indicating robust profit growth potential.
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 through its subsidiaries.
Operations: The company's revenue from the manufacturing and sale of beverages is ₹180.52 billion.
Insider Ownership: 36.3%
Varun Beverages, with substantial insider ownership, recently amended its Memorandum of Association to split equity shares, increasing liquidity. The company reported robust earnings for Q2 2024 with net income rising to ₹12.53 billion from ₹9.94 billion a year ago and revenue growing to ₹73.78 billion from ₹57.41 billion. Forecasts indicate annual profit growth of 22.3%, outpacing the Indian market average of 17%. However, the company carries a high level of debt.
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.
