Over the last 7 days, the Indian market has experienced a 3.2% decline, yet it has impressively risen by 40% over the past year, with earnings expected to grow by 17% annually. In such a fluctuating environment, stocks with high insider ownership can indicate strong confidence from those closest to the company's operations and strategy, making them particularly noteworthy for investors seeking growth opportunities.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dixon Technologies (India) Limited provides electronic manufacturing services both in India and internationally, with a market cap of ₹868.77 billion.
Operations: The company's revenue is primarily derived from its Mobile & EMS Division at ₹143.16 billion, Consumer Electronics & Appliances at ₹41.21 billion, Home Appliances at ₹12.51 billion, and Lighting Products at ₹7.92 billion.
Insider Ownership: 24.6%
Earnings Growth Forecast: 31.3% p.a.
Dixon Technologies (India) is positioned for significant growth, with earnings projected to grow by 31.3% annually and revenue expected to increase by 23.8% per year, outpacing the broader Indian market. Recent financial results show a substantial rise in net income to ₹1.34 billion for Q1 2024 from ₹688 million a year earlier, reflecting strong operational performance. High insider ownership aligns management interests with shareholders, though no recent insider trading activity was reported.
Overview: Sansera Engineering Limited manufactures and sells precision engineered components for automotive and non-automotive sectors globally, with a market cap of ₹85.91 billion.
Operations: The company generates revenue of ₹28.95 billion from its precision-engineered components segment.
Insider Ownership: 34.9%
Earnings Growth Forecast: 29.2% p.a.
Sansera Engineering is poised for growth, with earnings expected to rise 29.2% annually, surpassing the Indian market's forecasted 17.2%. Despite a high debt level, its revenue is set to grow at 15.6% per year, faster than the market average. Recent strategic moves include a significant contract with Dynamatic Technologies for Airbus A220 components and plans to raise up to ₹12 billion through various financial instruments, highlighting its expansion ambitions in aerospace and automotive sectors.
Overview: VA Tech Wabag Limited, with a market cap of ₹90.19 billion, specializes in the design, supply, installation, construction, operation, and maintenance of drinking water and waste and industrial water treatment and desalination plants both in India and internationally.
Operations: The company's revenue segment includes ₹29.30 billion from the construction and maintenance of water treatment plants.
Insider Ownership: 28.3%
Earnings Growth Forecast: 27.3% p.a.
VA Tech Wabag's earnings are forecast to grow significantly at 27.3% annually, outpacing the Indian market's 17.2%. The company recently secured a major US$317 million desalination project in Saudi Arabia, bolstering its Middle East presence. While insider buying has been minimal recently, the company faces legal challenges with an INR 126 million arbitration award against it. Despite this, Wabag continues to expand its operations with new contracts and projects globally.
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:DIXON NSEI:SANSERA and NSEI:WABAG.
