Over the last 7 days, the Indian market has dropped 1.2%, driven by a pullback of 4.5% in the Energy sector, yet it remains up 38% over the past year with earnings forecast to grow by 17% annually. In this context, companies that exhibit strong growth potential and high insider ownership can be particularly appealing as they often signal confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Archean Chemical Industries Limited manufactures and sells specialty marine chemicals in India and internationally, with a market cap of ₹89.10 billion.
Operations: The company's revenue primarily comes from its Marine Chemicals segment, generating ₹11.99 billion.
Insider Ownership: 22.9%
Archean Chemical Industries, a growth company with high insider ownership in India, is trading at 9.3% below its estimated fair value and has strong revenue growth forecasts of 28.2% annually, outpacing the Indian market's 10.1%. Earnings are expected to grow significantly at 33.73% per year over the next three years with a high forecasted return on equity of 24.4%. Recent challenges include penalties related to GST issues and a decline in Q1 earnings compared to the previous year.
Overview: Aether Industries Limited produces and sells advanced intermediates and specialty chemicals in India and internationally, with a market cap of ₹140.42 billion.
Operations: The company's revenue segments include ₹1.54 billion from Contract Manufacturing, ₹3.73 billion from Large Scale Manufacturing, and ₹832.89 million from Contract Research and Manufacturing Services (CRAMS).
Insider Ownership: 31.1%
Aether Industries, with substantial insider ownership, is poised for significant growth. The company recently secured an exclusive manufacturing agreement with Chemoxy International and a strategic supply agreement with Baker Hughes, enhancing its revenue streams. Despite lower profit margins this year (13.4% vs 19.8%), Aether's revenue and earnings are forecast to grow at 34.6% and 45.9% annually, respectively, outpacing the Indian market's growth rates of 10.1% and 17%.
Overview: Arvind Fashions Limited engages in the wholesale and retail trading of garments and accessories in India and internationally, with a market cap of ₹77.26 billion.
Operations: The company's revenue primarily comes from its Branded Apparel segment, which generated ₹43.47 billion.
Insider Ownership: 13%
Arvind Fashions, with high insider ownership, is experiencing significant earnings growth, having reported a net income of INR 13.2 million for Q1 2024 compared to a net loss the previous year. Its revenue and earnings are forecast to grow at 12.2% and 46.91% annually, respectively, outpacing the Indian market averages. Despite trading slightly below its estimated fair value and facing challenges in covering interest payments with earnings, its strong growth prospects make it noteworthy.
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:ACI NSEI:AETHER and NSEI:ARVINDFASN.