The Indian market has shown robust performance, climbing 1.0% over the last week and an impressive 39% over the past year, with earnings projected to grow by 17% annually in the coming years. In this thriving environment, companies that combine high insider ownership with strong earnings growth potential can offer compelling opportunities for investors seeking to align their interests with those of company insiders.
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 ₹921.75 billion.
Operations: The company's revenue segments include 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: 30.8% p.a.
Dixon Technologies (India) demonstrates strong growth potential, with earnings expected to grow significantly at 30.8% annually, outpacing the Indian market. Revenue is also forecast to rise rapidly at 23.7% per year. The company's recent financial performance reflects this trajectory, with net income nearly doubling from the previous year in Q1 2024. Despite no substantial insider trading activity recently, high insider ownership aligns management interests with shareholders', supporting long-term growth prospects.
Overview: Five-Star Business Finance Limited is a non-banking financial company in India with a market cap of ₹263.35 billion.
Operations: The company generates revenue from MSME Loans, Housing Loans, and Property Loans amounting to ₹17.79 billion.
Insider Ownership: 18.7%
Earnings Growth Forecast: 20.5% p.a.
Five-Star Business Finance shows robust growth prospects, with earnings expected to grow significantly at 20.5% annually, surpassing the Indian market. Revenue is forecasted to increase by 21.9% per year, outpacing market averages. Recent financial results indicate strong performance with substantial revenue and net income growth in Q1 2024. High insider ownership aligns management interests with shareholders'. The company recently approved INR 25 billion in non-convertible debentures issuance for further expansion initiatives.
Overview: Varun Beverages Limited, along with its subsidiaries, operates as a franchisee for carbonated soft drinks and non-carbonated beverages under PepsiCo trademarks, with a market cap of ₹1.98 trillion.
Operations: The company's revenue primarily stems from the manufacturing and sale of beverages, amounting to ₹180.52 billion.
Insider Ownership: 36.2%
Earnings Growth Forecast: 22.4% p.a.
Varun Beverages demonstrates strong growth potential, with earnings forecasted to grow 22.4% annually, outpacing the Indian market. Revenue is expected to increase by 15.4% per year. Recent initiatives include plans to raise ₹75 billion through Qualified Institutional Placement for expansion and debt repayment, alongside a $50 million investment in a new Pepsi facility in the DRC's Special Economic Zone. High insider ownership aligns management interests with shareholders', supporting strategic growth objectives.
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:FIVESTAR and NSEI:VBL.
