In the last week, the Indian market has been flat, but it has seen an impressive 44% increase over the past year with earnings forecasted to grow by 17% annually. In such a robust environment, growth companies with high insider ownership can be particularly appealing as they often signal confidence in future performance and alignment of interests between shareholders and management.
Top 10 Growth Companies With High Insider Ownership In India
Overview: AU Small Finance Bank Limited provides a range of banking and financial services in India and has a market cap of ₹506.12 billion.
Operations: AU Small Finance Bank Limited generates revenue from Treasury (₹18.63 billion), Retail Banking (₹103.26 billion), Wholesale Banking (₹12.74 billion), and Other Banking Operations (₹3.78 billion).
Insider Ownership: 24.3%
Revenue Growth Forecast: 24.2% p.a.
AU Small Finance Bank, with significant insider ownership, is poised for strong growth. The bank's revenue and earnings are forecasted to grow at 24.2% annually, outpacing the Indian market. Recent earnings showed a net income of ₹5.03 billion for Q1 2024, up from ₹3.87 billion a year ago. Despite facing minor regulatory penalties and management changes, the bank's price-to-earnings ratio of 30.7x remains attractive compared to the broader market at 34.3x.
Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India, with a market cap of ₹3.87 billion.
Operations: The company's revenue segments include Data Processing, which generated ₹91.38 billion.
Insider Ownership: 20.7%
Revenue Growth Forecast: 11.1% p.a.
One97 Communications, with substantial insider ownership, is focusing on core payments and financial services after selling its entertainment ticketing business to Zomato for ₹20.48 billion. Despite regulatory penalties related to stamp duty issues, the company remains committed to compliance. Recent earnings reported a net loss of ₹8.39 billion for Q1 2024, but strategic partnerships like the one with FlixBus and new product launches such as 'Paytm Health Saathi' highlight its growth potential in diverse sectors.
Overview: Persistent Systems Limited offers software products, services, and technology solutions across India, North America, and internationally with a market cap of ₹764.88 billion.
Operations: The company's revenue segments include Healthcare & Life Sciences (₹23.88 billion), Software, Hi-Tech and Emerging Industries (₹46.41 billion), and Banking, Financial Services and Insurance (BFSI) (₹32.08 billion).
Insider Ownership: 34.3%
Revenue Growth Forecast: 13.6% p.a.
Persistent Systems, a growth company with high insider ownership, reported strong Q1 2024 earnings with revenue of ₹27.68 billion and net income of ₹3.06 billion. The recent partnership with Mage Data™ enhances its data security services portfolio, aiding digital transformation for clients. Despite the resignation of key executives and moderate dividend payments, Persistent's focus on innovative solutions like the GenAI Hub underscores its commitment to leveraging AI for business growth across industries.
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:AUBANK NSEI:PAYTM and NSEI:PERSISTENT.
