The Indian market has been flat over the last week but has risen 44% in the past 12 months, with earnings expected to grow by 17% per annum over the next few years. In this robust environment, stocks with high insider ownership and strong growth potential, such as DLF and two others discussed here, can be particularly appealing to investors.
Top 10 Growth Companies With High Insider Ownership In India
Overview: DLF Limited, along with its subsidiaries, operates in the colonization and real estate development sector in India, with a market cap of ₹2.10 trillion.
Operations: DLF's revenue primarily comes from real estate development and related activities, amounting to ₹63.66 billion.
Insider Ownership: 26.4%
Earnings Growth Forecast: 22.9% p.a.
DLF's earnings and revenue are forecast to grow significantly, with earnings expected to rise 22.9% annually, outpacing the Indian market. Revenue is projected to increase by 21.5% per year, also exceeding market growth rates. Despite substantial insider ownership, recent months have seen minimal insider buying or selling activity. Recent news includes the cessation of Lt. Gen. Aditya Singh (Retd.) as an Independent Director and positive Q1 financial results with increased net income and EPS compared to last year.
Overview: MedPlus Health Services Limited operates in the retail trading of medicines and general items in India, with a market cap of ₹83.53 billion.
Operations: MedPlus Health Services Limited generates revenue primarily from its retail segment at ₹57.43 billion and diagnostics segment at ₹852.29 million.
Insider Ownership: 14.0%
Earnings Growth Forecast: 40.9% p.a.
MedPlus Health Services has demonstrated robust growth with Q1 2024 earnings showing a net income of ₹143.63 million, up from ₹37.86 million the previous year, and EPS rising to ₹1.2 from ₹0.32. Despite a forecasted return on equity of 11%, which is below benchmark expectations, its revenue and earnings are projected to grow faster than the Indian market at 16.6% and 40.9% per year respectively, indicating strong future prospects for this high insider ownership company.
Overview: Solara Active Pharma Sciences Limited is engaged in the manufacturing, production, processing, formulation, and distribution of active pharmaceutical ingredients (API) across India and various international markets with a market cap of ₹35.42 billion.
Operations: The company's revenue from active pharmaceutical ingredients (API) amounts to ₹13.00 billion.
Insider Ownership: 10.4%
Earnings Growth Forecast: 107.1% p.a.
Solara Active Pharma Sciences is forecast to become profitable within three years, with revenue expected to grow at 12.6% annually, outpacing the Indian market. Despite recent shareholder dilution and a low future return on equity of 8.5%, Q1 2024 results showed improved net loss figures and reaffirmed FY2025 revenue guidance between ₹14 billion and ₹15 billion. The company has high insider ownership but recently saw the resignation of a non-executive director.
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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:DLF NSEI:MEDPLUS and NSEI:SOLARA.
