The Indian market has shown robust performance, with a 3.4% increase in the last week and an impressive 44% rise over the past twelve months, alongside forecasts predicting annual earnings growth of 17%. In such a thriving environment, stocks with high insider ownership can be particularly appealing, as they often indicate that company leaders have a vested interest in their organization's success and future growth.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Capacit'e Infraprojects Limited operates in India, focusing on engineering, procurement, and construction services with a market capitalization of approximately ₹24.76 billion.
Operations: The company generates ₹17.79 billion in revenue from its engineering, procurement, and construction contracts.
Insider Ownership: 31.4%
Revenue Growth Forecast: 22.2% p.a.
Capacit'e Infraprojects, with its high insider ownership, is positioned for robust growth in the Indian construction sector. The company recently secured significant contracts totaling INR 5.49 billion, enhancing its project portfolio with prominent developers like Macrotech and Raymond Realty. Despite the recent CEO resignation, Capacit'e's revenue and earnings are expected to grow substantially at 22.2% and 34.1% per year respectively, outpacing the broader market. However, shareholder dilution over the past year and a forecasted low Return on Equity of 10.4% temper its growth prospects slightly.
Overview: Dollar Industries Limited, with a market cap of ₹33.35 billion, operates in the manufacturing and sale of hosiery products including knitted inner wears, casual wears, and thermal wears both in India and internationally.
Operations: The company generates ₹14.79 billion in revenue from its segments including garments, hosiery goods, and rainwear products along with related services.
Insider Ownership: 10.1%
Revenue Growth Forecast: 13.3% p.a.
Dollar Industries, despite a modest return on equity forecast at 17.4%, is expected to see its earnings grow by 39.2% annually, outperforming the broader Indian market's growth rate. Revenue growth is also projected to surpass market averages at 13.3% per year. However, the company faces challenges with declining profit margins, down from last year’s 6.5% to this year's 3.9%, and an unstable dividend track record could concern investors looking for consistent returns.
Overview: Lumax Auto Technologies Limited specializes in manufacturing and selling automotive components in India, with a market capitalization of approximately ₹32.48 billion.
Operations: The company generates its revenue primarily from the manufacturing and trading of automotive components, totaling approximately ₹25.58 billion.
Insider Ownership: 39%
Revenue Growth Forecast: 16.4% p.a.
Lumax Auto Technologies, with a price-to-earnings ratio of ₹31, is positioned below the broader Indian market average. The company's revenue and earnings are expected to grow at 16.4% and 36% per year respectively, outpacing the market projections significantly. Despite its high level of debt, Lumax Auto recently expanded by incorporating Lumax Resources Private Limited as a wholly owned subsidiary to capitalize on automotive sector opportunities. However, it has an unstable dividend track record which might be a concern for yield-focused investors.
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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.
