Over the last 7 days, the Indian market has dropped 1.2%. In contrast to this recent dip, the market is up 38% over the past year with earnings forecasted to grow by 17% annually. In such a fluctuating environment, growth companies with significant insider ownership can offer a compelling investment opportunity due to their potential for strong performance and alignment of interests between management and shareholders.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Greenlam Industries Limited manufactures and sells laminates, decorative veneers, and their allied products in India and internationally, with a market cap of ₹70.04 billion.
Operations: The company's revenue segments are comprised of ₹0.85 billion from Plywood & Allied Products, ₹2.09 billion from Veneers & Allied Products, and ₹21.02 billion from Laminate & Allied Products.
Insider Ownership: 24.6%
Greenlam Industries showcases strong growth potential, with earnings forecast to grow 33.67% annually and revenue expected to increase by 19.1% per year, outpacing the Indian market's growth rate. Despite a recent dip in net income for Q1 2024 (INR 202.7 million vs INR 331 million a year ago), analysts agree on a stock price rise of 20.1%. However, the dividend yield of 0.3% is not well covered by free cash flows, and debt coverage remains an area of concern.
Overview: HPL Electric & Power Limited manufactures and sells electric equipment under the HPL brand in India, with a market cap of ₹37.84 billion.
Operations: HPL Electric & Power's revenue segments include Metering, Systems & Services generating ₹9.15 billion and Consumer, Industrial & Services contributing ₹6.18 billion.
Insider Ownership: 22.7%
HPL Electric & Power demonstrates robust growth prospects with earnings forecast to grow 44.78% annually and revenue expected to rise by 23.5% per year, significantly outpacing the Indian market. Recent Q1 2024 financials show a strong performance with net income increasing to INR 170.23 million from INR 69.25 million a year ago, despite high volatility in share price and interest payments not being well covered by earnings.
Overview: Sansera Engineering Limited manufactures and sells precision engineered components for automotive and non-automotive sectors in India, Europe, the United States, and internationally, with a market cap of ₹75.64 billion.
Operations: Sansera Engineering Limited's revenue primarily stems from the manufacture of precision-engineered components, amounting to ₹28.95 billion.
Insider Ownership: 34.9%
Sansera Engineering's robust growth prospects are underscored by a forecasted 29.2% annual earnings increase, outpacing the Indian market's 17%. Recent developments include a strategic partnership with Dynamatic Technologies to supply Airbus A220 components and plans to raise up to ₹12 billion through qualified institutions placements. Despite high debt levels, Sansera’s revenue is expected to grow at 15.6% annually, faster than the market average of 10.1%, driven by significant expansion initiatives in Karnataka.
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:GREENLAM NSEI:HPL and NSEI:SANSERA.
