The Indian stock market has experienced a notable ascent, rising 39% over the past year despite a recent 1.5% dip in the last week. In this context, companies with high insider ownership can be particularly compelling, as they often signal strong confidence from those closest to the business amidst promising forecasts of 17% annual earnings growth.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Greenlam Industries Limited, with a market cap of ₹76.68 billion, operates in the manufacturing and sale of laminates, decorative veneers, and related products across both domestic and international markets.
Operations: The company generates revenue primarily from two segments: laminates and allied products, contributing ₹19.95 billion, and veneers and allied products, adding ₹1.90 billion.
Insider Ownership: 24.6%
Greenlam Industries is poised for notable growth, with earnings expected to increase by 26.39% annually over the next three years, outpacing the broader Indian market's 17.1% forecasted growth. Despite trading at a 5.5% discount to its estimated fair value, concerns linger as its debt is not well covered by operating cash flow. Moreover, while last year's earnings surged by 32.8%, the company’s projected Return on Equity of 18.1% remains modest.
Overview: Persistent Systems Limited operates in software products, services, and technology solutions across India, North America, and other global markets, with a market capitalization of approximately ₹502.99 billion.
Operations: The company's revenue is primarily derived 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%
Persistent Systems, a growth-oriented company with high insider ownership in India, has demonstrated robust financial performance with earnings growing at 27% annually over the past five years. The company's revenue and earnings are forecasted to grow faster than the market at 13.2% and 17.92% per year respectively. Additionally, its Return on Equity is expected to be strong at 26.2%. Recent initiatives like the launch of Persistent iAURA, an AI-powered data solution suite, underscore its commitment to leveraging advanced technology for business growth. However, it's noteworthy that while Persistent’s revenue growth is impressive, it does not exceed the high-growth threshold of 20% annually.
Overview: Tega Industries Limited specializes in designing, manufacturing, and installing process equipment and accessories for the mineral processing, mining, and material handling industries, with a market capitalization of approximately ₹101.95 billion.
Operations: The company generates ₹12.01 billion in revenue from consumables related to its core operations in process equipment and accessories for various industries.
Insider Ownership: 19%
Tega Industries, a key growth company in India with high insider ownership, has shown promising financial trends. Over the past five years, its earnings have increased by 24.2% annually. Looking ahead, earnings are expected to rise by 24.09% per year over the next three years, outpacing the Indian market's forecast of 17.1%. Revenue growth is also robust at an annual rate of 17.7%, exceeding the market average of 9.7%. However, its projected Return on Equity of 19.4% is considered low compared to 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:GREENLAMNSEI:PERSISTENT NSEI:TEGA and
