Over the last 7 days, the Indian market has risen 1.1%, driven by gains in the Financials and Consumer Discretionary sectors of 0.9% and 1.6%, respectively. As for the past 12 months, the market is up 41%, with earnings forecast to grow by 17% annually. In this thriving environment, identifying growth companies with significant insider ownership can be a strategic move, as it often indicates confidence from those closest to the business operations.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dixon Technologies (India) Limited provides electronic manufacturing services both domestically and internationally, with a market cap of ₹841.36 billion.
Operations: The company's revenue segments consist of Home Appliances at ₹12.51 billion, Lighting Products at ₹7.92 billion, Mobile & EMS Division at ₹143.16 billion, and Consumer Electronics & Appliances at ₹41.21 billion.
Insider Ownership: 24.6%
Earnings Growth Forecast: 31% p.a.
Dixon Technologies (India) showcases strong growth potential with revenue forecasted to grow at 24% annually, outpacing the Indian market's 10.1%. Earnings are expected to increase by 31% per year, significantly above the market average of 17.1%. Recent earnings reports indicate robust performance with net income doubling from INR 688.2 million to INR 1,336.8 million year-over-year. The company's high insider ownership aligns management interests with shareholders, enhancing its appeal as a growth-oriented investment in India.
Overview: Dodla Dairy Limited, along with its subsidiaries, produces and sells milk and milk products in India and internationally, with a market cap of ₹72.83 billion.
Operations: Revenue from milk and milk products amounts to ₹32.14 billion.
Insider Ownership: 27.7%
Earnings Growth Forecast: 22.2% p.a.
Dodla Dairy has demonstrated significant growth with earnings rising by 48.7% over the past year and net income increasing to INR 650.24 million from INR 349.71 million year-over-year. Revenue is forecasted to grow at 13.4% annually, outpacing the Indian market's average of 10.1%. Earnings are expected to increase by 22.2% per year, higher than the market average of 17.1%. Despite no substantial insider buying recently, high insider ownership aligns management interests with shareholders.
Overview: Happy Forgings Limited manufactures and sells forgings and related components in India and internationally, with a market cap of ₹113.77 billion.
Operations: Happy Forgings generates revenue primarily from its Forged and Machined Products segment, amounting to ₹13.70 billion.
Insider Ownership: 26.8%
Earnings Growth Forecast: 22.2% p.a.
Happy Forgings' earnings are forecast to grow significantly at 22.2% per year, outpacing the Indian market's 17.1%. Revenue growth is expected at 17.6% annually, higher than the market average of 10.1%. Despite a low dividend yield of 0.33%, high insider ownership aligns management interests with shareholders. Recent Q1 results show steady performance with sales reaching INR 3,414.66 million and net income slightly decreasing to INR 638 million from INR 640.38 million year-over-year.
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:DODLA and NSEI:HAPPYFORGE.
