In the last week, the Indian market has been flat, but it has seen a remarkable 45% rise over the past 12 months with earnings forecasted to grow by 17% annually. In this context of robust growth, stocks with strong insider ownership can be particularly appealing as they often signal confidence from those closest to the company’s operations and future prospects.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Info Edge (India) Limited is an online classifieds company focusing on recruitment, matrimony, real estate, and education services both in India and internationally, with a market cap of ₹1.05 trillion.
Operations: The company's revenue primarily comes from its Recruitment Solutions segment, generating ₹19.05 billion, followed by the 99acres Real Estate platform with ₹3.67 billion.
Insider Ownership: 37.7%
Revenue Growth Forecast: 13% p.a.
Info Edge (India) demonstrates strong growth potential with earnings forecasted to outpace the Indian market at 23.6% annually, despite a relatively low projected return on equity of 4.6%. Recent insider activity indicates more shares have been sold than bought in the past three months, suggesting caution. The company recently approved a final dividend of INR 12 per share and plans to invest INR 4.2 Crores in Nexstem India Private Limited, indicating ongoing strategic expansion efforts.
Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India with a market cap of ₹4.63 billion.
Operations: The company generates revenue primarily from data processing, amounting to ₹91.38 billion.
Insider Ownership: 20.7%
Revenue Growth Forecast: 12.1% p.a.
One97 Communications is focusing on core payments and financial services, highlighted by the sale of its entertainment ticketing business to Zomato for ₹20.48 billion. Despite recent penalties related to stamp duty issues, these have minimal operational impact. The company's revenue is expected to grow at 12.1% annually, surpassing the Indian market's average growth rate of 10.1%. However, profitability remains a challenge with forecasts indicating continued losses over the next three years amidst volatile share prices.
Overview: Tega Industries Limited designs, manufactures, and installs process equipment and accessories for the mineral processing, mining, and material handling industries with a market cap of ₹129.23 billion.
Operations: The company's revenue is derived from Equipments, contributing ₹1.98 billion, and Consumables, accounting for ₹13.71 billion.
Insider Ownership: 19%
Revenue Growth Forecast: 17% p.a.
Tega Industries is poised for growth with revenue projected to increase by 17% annually, outpacing the Indian market's 10.1%. Earnings are expected to grow significantly at 24.7% per year, indicating robust financial health. Recent earnings reports show strong performance with net income rising from ₹213.91 million to ₹367.44 million year-over-year. Despite changes in auditors, insider ownership remains stable without significant recent trading activity, supporting confidence in long-term prospects amidst high return on equity forecasts of 21.6%.
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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:NAUKRI NSEI:PAYTM and NSEI:TEGA.
