The Indian stock market has shown robust growth, rising 2.3% in the last week and an impressive 45% over the past year, with earnings expected to grow by 16% annually. In this buoyant environment, stocks with high insider ownership can be particularly appealing as they often indicate confidence from those who know the company best.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Astral Limited operates in the manufacturing and marketing of pipes, water tanks, and adhesives and sealants both in India and internationally, with a market capitalization of approximately ₹595.16 billion.
Operations: The company generates revenue primarily from two segments: plumbing, which contributes ₹41.42 billion, and paints and adhesives, accounting for ₹14.99 billion.
Insider Ownership: 39.4%
Earnings Growth Forecast: 23% p.a.
Astral has demonstrated consistent financial growth with a 19.1% increase in earnings over the past five years, and forecasts suggest a continued upward trajectory with earnings expected to grow by 23% annually. This growth outpaces the broader Indian market's average. Despite this robust performance, insider transactions have been mixed, with more shares sold than bought in recent months. Additionally, Astral's revenue growth forecast of 17.6% yearly is strong but falls short of the high-growth benchmark of 20%.
Overview: Intellect Design Arena Limited specializes in developing software and providing services for the banking, insurance, and financial sectors across both domestic and international markets, with a market capitalization of approximately ₹137.88 billion.
Operations: The company generates ₹24.73 billion from its software product license and related services segment.
Insider Ownership: 14.7%
Earnings Growth Forecast: 22.9% p.a.
Intellect Design Arena has shown a robust earnings growth of 26.4% annually over the past five years, with future earnings expected to grow by 22.91% per year. Despite this strong performance, its revenue growth forecast at 10.8% yearly is modest compared to high-growth benchmarks. Recent insider activities show more buying than selling, albeit not in substantial volumes, indicating cautious optimism among insiders about the company's prospects. Additionally, Intellect's recent launch of iGPX and partnerships like with Vancity highlight its innovative strides and market expansion efforts.
Overview: JNK India Limited operates in the heating equipment sector, focusing on the design, engineering, manufacturing, supply, installation, and commissioning of process fired heaters, reformers, and cracking furnaces both in India and internationally with a market cap of ₹41.95 billion.
Operations: The company generates ₹4.80 billion in revenue from its fired heaters and related products segment.
Insider Ownership: 20.9%
Earnings Growth Forecast: 31.8% p.a.
JNK India is poised for substantial growth with earnings and revenue forecast to increase by 31.78% and 31.7% annually, outpacing the Indian market's average. The company recently secured significant orders, including from Reliance Industries for a project in Gujarat and JNK Global for a refinery project in the USA, enhancing its international presence. Despite its highly volatile share price recently, JNK India maintains a high Return on Equity forecast at 21.1%, signaling efficient management and profitability potential.
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:ASTRAL NSEI:INTELLECT and NSEI:JNKINDIA.
