The Indian market has shown impressive performance, rising 1.6% in the last 7 days and climbing 43% over the past year, with earnings projected to grow by 17% annually in the coming years. In such a robust environment, identifying growth companies with high insider ownership can be particularly advantageous as it often signals strong confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Capacit'e Infraprojects Limited, along with its subsidiaries, operates in the engineering, procurement, and construction sector in India with a market cap of ₹28.39 billion.
Operations: The company's revenue is primarily derived from its Engineering, Procurement, and Construction (EPC) contracts, amounting to ₹19.32 billion.
Insider Ownership: 31.9%
Earnings Growth Forecast: 24.4% p.a.
Capacit'e Infraprojects, a growth company with high insider ownership in India, is forecasted to see significant annual earnings growth of 24.42%, outpacing the Indian market's average. Despite past shareholder dilution and a low return on equity forecast of 11.5% in three years, the company trades at a favorable price-to-earnings ratio of 23.6x compared to the market's 33.7x. Recent developments include appointing new directors and raising ₹1 billion through non-convertible debentures for expansion initiatives.
Overview: Krsnaa Diagnostics Limited provides diagnostic services and has a market cap of ₹21.48 billion.
Operations: The company generates ₹6.50 billion from its radiology and pathology services.
Insider Ownership: 27.4%
Earnings Growth Forecast: 36.9% p.a.
Krsnaa Diagnostics, with high insider ownership, is poised for robust growth. Recent earnings show a revenue increase to ₹1.77 billion and net income of ₹179.21 million for Q1 2024. The company secured significant contracts in Madhya Pradesh and Mumbai, enhancing its market presence. Despite past shareholder dilution and a low return on equity forecast of 14.1%, Krsnaa trades at 42.9% below its estimated fair value, with projected annual earnings growth of 36.9%.
Overview: PVR INOX Limited is a theatrical exhibition company involved in the exhibition, distribution, and production of movies in India and Sri Lanka, with a market cap of ₹142.60 billion.
Operations: The company's revenue segments include ₹59.48 billion from movie exhibition and ₹3.29 billion from segment adjustments.
Insider Ownership: 11.6%
Earnings Growth Forecast: 60.2% p.a.
PVR INOX, with substantial insider ownership, is expanding aggressively. Recent openings include a 9-screen multiplex in Ahmedabad and new cinemas in Hyderabad and Udaipur. Despite reporting a net loss of ₹1.79 billion for Q1 2024, revenue is forecast to grow at 12.3% annually, outpacing the Indian market's growth rate of 9.9%. The company is expected to become profitable within three years and trades at good value compared to peers and industry benchmarks.
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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:CAPACITE NSEI:KRSNAA and NSEI:PVRINOX.
