The Indian market has experienced notable fluctuations recently, with a 1.5% drop over the last week, yet it has impressively risen by 44% over the past year. In this context, stocks with high insider ownership can be particularly appealing as they often indicate that company leaders have a vested interest in the company's success, aligning well with the forecasted annual earnings growth of 16%.
Top 10 Growth Companies With High Insider Ownership In India
Overview: AU Small Finance Bank Limited, based in India, provides a range of banking and financial services with a market capitalization of approximately ₹487.07 billion.
Operations: The bank's revenue is primarily generated from three segments: Treasury (₹17.04 billion), Retail Banking (₹91.18 billion), and Wholesale Banking (₹11.61 billion).
Insider Ownership: 24.3%
Earnings Growth Forecast: 24.2% p.a.
AU Small Finance Bank, notable for its high insider ownership, is poised for robust growth with revenue and earnings forecasted to outpace the Indian market significantly. Recent strategic moves include plans to raise INR 110 billion through equity and debt, positioning it well for expansion. Despite some regulatory penalties, the bank maintains a strong financial outlook with expected substantial growth in profits. However, shareholder dilution over the past year could be a concern for potential investors.
Overview: Dodla Dairy Limited operates in the production and sale of milk and dairy products both domestically in India and internationally, with a market capitalization of approximately ₹74.09 billion.
Operations: The company generates revenue primarily from the sale of milk and dairy products, amounting to ₹31.25 billion.
Insider Ownership: 26.7%
Earnings Growth Forecast: 23.9% p.a.
Dodla Dairy, with high insider ownership, reported a strong financial performance with substantial year-over-year growth in net income and earnings per share as of June 2024. Forecasted revenue and earnings growth are expected to surpass the Indian market average, indicating potential for sustained expansion. Despite this positive outlook, there has been significant insider selling over the past three months, which could raise concerns among investors about future confidence in the company's growth trajectory.
Overview: Info Edge (India) Limited is an online classifieds company operating in recruitment, matrimony, real estate, and education sectors both in India and internationally, with a market cap of approximately ₹894.01 billion.
Operations: The company generates revenue primarily through recruitment solutions and real estate classifieds, amounting to ₹18.80 billion and ₹3.51 billion respectively.
Insider Ownership: 37.9%
Earnings Growth Forecast: 24.1% p.a.
Info Edge (India) recently turned profitable, with a significant year-over-year increase in earnings and revenue. Despite this, its Return on Equity is projected to remain low at 5.6% over the next three years. The company's revenue growth at 12.1% annually is set to outpace the Indian market average of 9.4%, but it falls short of the high-growth benchmark of 20%. Insider activity has shown more selling than buying in recent months, which might concern potential investors about long-term confidence in the company’s growth prospects.
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:AUBANK NSEI:DODLA and NSEI:NAUKRI.
