In the last week, the Indian market has stayed flat while the Communication Services sector gained 4.7%, contributing to an impressive 45% rise over the past year with earnings forecasted to grow by 17% annually. In such a robust market environment, growth companies with high insider ownership can be particularly attractive as they often signal strong confidence from those who know the business best and may offer significant revenue growth potential.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Godrej Consumer Products Limited, a fast-moving consumer goods company with a market cap of ₹1.51 trillion, manufactures and markets personal care and home care products in India, Africa, Indonesia, the Middle East, the United States of America, and internationally.
Operations: The company's revenue from the manufacturing of personal, household, and hair care products is ₹139.79 billion.
Insider Ownership: 13.8%
Revenue Growth Forecast: 10.1% p.a.
Godrej Consumer Products, with significant insider ownership, is poised for growth despite some challenges. The company recently announced a strategic expansion into the pet care market, investing ₹5 billion over five years. Recent management changes aim to drive innovation and creativity. While revenue is expected to grow at 10.1% annually, earnings are forecasted to increase by 58.76% per year, although the return on equity remains modest at 19.6%.
Overview: Info Edge (India) Limited is an online classifieds company operating 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 its 99acres real estate platform.
Insider Ownership: 37.8%
Revenue Growth Forecast: 13% p.a.
Info Edge (India) Limited, characterized by high insider ownership, demonstrates solid growth potential. The company recently reported a significant increase in quarterly revenue to ₹8.28 billion and net income of ₹2.33 billion. Despite some insider selling over the past three months, earnings are forecasted to grow at 23.62% annually, outpacing the Indian market's average growth rate. Recent strategic appointments and a reconstituted audit committee underscore its commitment to sustained revenue growth and operational excellence.
Overview: Titagarh Rail Systems Limited manufactures and sells freight and passenger rail systems in India and internationally, with a market cap of ₹190.66 billion.
Operations: Revenue from passenger rail systems is ₹3.32 billion, and revenue from freight rail systems (including shipbuilding, bridges, and defense) is ₹35.14 billion.
Insider Ownership: 22.3%
Revenue Growth Forecast: 25.7% p.a.
Titagarh Rail Systems, with substantial insider ownership, shows promising growth potential. Recently, it reported first-quarter revenue of ₹9.15 billion and net income of ₹670.1 million. Despite some shareholder dilution over the past year, earnings are projected to grow at 30.1% annually, outpacing the Indian market's average growth rate. The company's involvement in significant infrastructure projects like Bangalore Metro's Yellow Line and its new engineering center in Bangalore highlight its commitment to innovation and national infrastructure development.
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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:GODREJCP NSEI:NAUKRI and NSEI:TITAGARH.
