The Indian market has shown robust growth, climbing 1.6% in the last 7 days and an impressive 44% over the past year, with earnings expected to grow by 16% annually. In such a flourishing environment, stocks like Astral that combine high insider ownership with substantial growth potential are particularly compelling for investors looking for aligned interests and strong corporate governance.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Astral Limited, along with its subsidiaries, specializes in the production and distribution of pipes, water tanks, and adhesives and sealants across both domestic and international markets, boasting a market capitalization of approximately ₹577.19 billion.
Operations: The company generates revenue primarily from two segments: plumbing (₹41.42 billion) and paints and adhesives (₹14.99 billion).
Insider Ownership: 39.4%
Earnings Growth Forecast: 22.8% p.a.
Astral Limited, a growth company with significant insider ownership in India, has demonstrated robust financial performance with a notable increase in annual sales from INR 51.59 billion to INR 56.41 billion and an uplift in net income from INR 4.57 billion to INR 5.46 billion as of March 2024. Despite a slight dip in quarterly earnings per share from INR 7.66 to INR 6.76, Astral's forecasted earnings growth is substantial at approximately 22.85% annually over the next three years, outpacing the Indian market's average. However, recent months have not seen substantial insider buying or selling activity.
Overview: AU Small Finance Bank Limited, operating in India, offers a range of banking and financial services with a market capitalization of approximately ₹472.64 billion.
Operations: The bank's revenue is primarily derived from treasury operations at ₹17.04 billion, retail banking at ₹91.18 billion, and wholesale banking at ₹11.61 billion.
Insider Ownership: 24.3%
Earnings Growth Forecast: 23.9% p.a.
AU Small Finance Bank has shown consistent growth with earnings increasing by 21.9% annually over the past five years and is expected to continue at a rate of about 23.94% per year. Revenue forecasts also indicate robust growth, outpacing the Indian market significantly at an estimated 24.8% annually. However, recent regulatory penalties and a lack of substantial insider buying raise concerns about governance and insider confidence, despite no significant dilution in shareholder value over the past year.
Overview: Persistent Systems Limited operates globally, offering software products, services, and technology solutions across India and North America with a market capitalization of approximately ₹54.22 billion.
Operations: The company's revenue is primarily generated from three segments: Healthcare & Life Sciences (₹20.88 billion), Software, Hi-Tech and Emerging Industries (₹45.95 billion), and Banking, Financial Services and Insurance (BFSI) at ₹31.39 billion.
Insider Ownership: 34.3%
Earnings Growth Forecast: 17.9% p.a.
Persistent Systems, a growth-oriented company with substantial insider ownership, is expected to see its Return on Equity reach 26.2% in three years. While its revenue growth of 13.2% per year lags behind the 20% benchmark for high-growth companies, it outpaces the Indian market's average of 9.4%. Earnings have expanded by 27% annually over the past five years and are projected to increase by 17.9% annually, slightly above market expectations of 16%. Despite these positive trends, there is no recent substantial insider buying or selling activity to report.
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.
