The Utilities sector gained 3.5% while the market remained flat over the last week, and overall, the market is up 44% over the past year with earnings forecast to grow by 17% annually. In such a robust environment, stocks with high insider ownership and strong growth prospects can be particularly appealing to investors looking for potential opportunities.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Intellect Design Arena Limited develops software and provides related services for banking, insurance, and financial sectors globally, with a market cap of ₹137.87 billion.
Operations: The company's revenue primarily comes from software product licenses and related services, generating ₹24.73 billion.
Insider Ownership: 14.5%
Revenue Growth Forecast: 11.1% p.a.
Intellect Design Arena, a growth company with high insider ownership, has recently launched its AI-driven WealthForce.AI platform in the Middle East and formed strategic alliances with HCLTech and Wipro to drive digital transformation in financial institutions. Despite an unstable dividend track record, Intellect's revenue is expected to grow at 11.1% annually, outpacing the Indian market. Earnings are forecasted to grow significantly at 22.38% per year over the next three years, highlighting strong profit potential.
Overview: JNK India Limited is a heating equipment company involved in the design, engineering, manufacturing, supply, installation, and commissioning of process fired heaters, reformers, and cracking furnaces both domestically and internationally with a market cap of ₹37.57 billion.
Operations: The company's revenue primarily comes from Fired Heaters and Related Products, amounting to ₹5.32 billion.
Insider Ownership: 21%
Revenue Growth Forecast: 32% p.a.
JNK India, with substantial insider ownership, is forecasted to achieve significant earnings growth of 33.71% annually over the next three years, outpacing the Indian market. Recent achievements include being added to the S&P Global BMI Index and securing major orders from Mundra Petrochem and JNK Global Co. Ltd., enhancing its market footprint in India and the USA. Despite some insider selling, overall sentiment remains positive with more shares bought than sold recently.
Overview: S H Kelkar and Company Limited, with a market cap of ₹41.58 billion, manufactures and supplies fragrances, flavors, and aroma ingredients in India through its subsidiaries.
Operations: The company's revenue segments include ₹2.59 billion from flavors and ₹22.08 billion from fragrances.
Insider Ownership: 38%
Revenue Growth Forecast: 11.1% p.a.
S H Kelkar, with significant insider ownership, is expanding its fragrance and flavor formulation facility at Vanawate, Raigad, to replace leased factories in Mulund. This INR 800 million capex aims to enhance operational stability. Despite a recent net loss of INR 865.8 million for Q1 2024 due to large one-off items and lower profit margins (0.6% vs. 3.9% last year), the company forecasts robust earnings growth of 44.88% annually over the next three years.
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:INTELLECT NSEI:JNKINDIA and NSEI:SHK.
