The Sensex and the Nifty 50, key indices of the Indian stock market, hit fresh record highs in intraday trade on Friday, August 30. Amidst this bullish sentiment driven by expectations of a rate cut and solid economic growth prospects, identifying growth companies with high insider ownership can be particularly rewarding for investors.
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 ₹789.96 billion.
Operations: The company's 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%
Dixon Technologies (India) is poised for robust growth, with revenue expected to grow at 23.6% annually and earnings at 36.6%, both outpacing the Indian market averages. The company reported strong Q1 results with net income of ₹1.34 billion and sales nearly doubling from the previous year to ₹65.80 billion. Recent management changes include appointing Mr. Sunil Ranjhan as Chief Human Resource Officer, bringing over 37 years of HR experience across major industries in APAC regions.
Overview: Godrej Consumer Products Limited, with a market cap of ₹1.51 trillion, manufactures and markets personal care and home care products across India, Africa, Indonesia, the Middle East, the United States of America, and internationally.
Operations: The company's revenue is primarily derived from the manufacturing of personal, household, and hair care products, totaling ₹139.79 billion.
Insider Ownership: 13.8%
Godrej Consumer Products is expected to see annual revenue growth of 10.1% and earnings growth of 58.76%, becoming profitable within three years. Recent management changes include appointing Swati Bhattacharya as Global Head - Lightbox Creative Lab and Ashwin Moorthy as Global Head of Category Direction and Innovation. The company has also announced a new venture into the Pet Care business, investing ₹5 billion over five years, diversifying its revenue streams.
Overview: Info Edge (India) Limited operates as an online classifieds company in recruitment, matrimony, real estate, and education services both in India and internationally, with a market cap of ₹992.07 billion.
Operations: The company's revenue segments include ₹19.05 billion from recruitment solutions and ₹3.67 billion from 99acres for real estate.
Insider Ownership: 37.8%
Info Edge (India) is experiencing robust growth, with Q1 2024 revenue at ₹8.28 billion and net income of ₹2.33 billion, marking significant year-on-year increases. Insider ownership remains high, evidenced by more shares being bought than sold recently. The company has appointed Aayush Rathi as Senior Vice President for Revenue Growth Strategy and reconstituted its Audit Committee to enhance governance. Despite an unstable dividend track record, earnings are forecasted to grow significantly above the market average at 23.62% annually.
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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.
Companies discussed in this article include NSEI:DIXON NSEI:GODREJCP and NSEI:NAUKRI.
