The Indian market has shown robust performance, rising 1.1% in the last week and an impressive 45% over the past year, with earnings expected to grow by 16% annually. In such a thriving 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: Dollar Industries Limited specializes in manufacturing and selling a range of hosiery products including knitted inner wears, casual wears, and thermal wears, operating both in India and internationally, with a market capitalization of ₹29.45 billion.
Operations: The company generates revenue primarily from garments, hosiery goods, and rainwear products totaling ₹15.72 billion.
Insider Ownership: 10.1%
Dollar Industries has demonstrated robust earnings growth, with a 71.7% increase over the past year and expectations to outpace the broader Indian market's annual profit growth. Despite slower revenue growth forecasts, its earnings are projected to expand significantly in the coming years. However, challenges include a low forecasted return on equity and dividends that are not well-covered by free cash flows. Recent financial results showed substantial year-over-year increases in sales, revenue, and net income for both quarterly and annual figures.
Overview: Krsnaa Diagnostics Limited operates in the healthcare sector by offering diagnostic services, with a market capitalization of approximately ₹21.42 billion.
Operations: The company generates revenue primarily from radiology and pathology services, totaling approximately ₹6.20 billion.
Insider Ownership: 27.4%
Krsnaa Diagnostics, a growth-oriented company with significant insider ownership, is expected to see its earnings grow by 37.8% annually. Despite a low forecasted return on equity of 14.2% in three years, revenue is projected to increase by 26.2% per year, outpacing the Indian market's average. Recently, Krsnaa secured a major contract from Bhabha Atomic Research Centre for Tele Reporting Services and announced leadership changes with Mitesh Dave appointed as CEO, promising strategic leadership aimed at further growth and innovation.
Overview: Varun Beverages Limited operates as a franchisee of PepsiCo, producing and distributing carbonated soft drinks and non-carbonated beverages, with a market capitalization of approximately ₹2.12 billion.
Operations: The company generates revenue primarily from the manufacturing and sale of beverages, totaling approximately ₹164.67 billion.
Insider Ownership: 36.4%
Varun Beverages, with high insider ownership, is poised for substantial growth in India. Its revenue and earnings are forecasted to outpace the Indian market's average, with a 16.5% and 24.4% increase respectively per year. Recent strategic expansions include entering the Zimbabwe market and appointing experienced leaders like Rajeshwar Tripathi as CHRO and Rajesh Chawla as CFO, enhancing its leadership team. However, it carries a high level of debt which could impact financial flexibility.
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.
