The Indian stock market has shown robust growth, rising by 1.2% over the past week and an impressive 45% over the last year, with earnings expected to grow by 16% annually. In this thriving environment, companies with high insider ownership can be particularly intriguing, as such stakes often align leadership's interests with those of shareholders, potentially enhancing long-term value.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Info Edge (India) Limited, with a market cap of approximately ₹894.35 billion, operates as an online classifieds company in India and internationally, focusing on recruitment, matrimony, real estate, and education sectors.
Operations: The company generates revenue primarily through recruitment solutions (₹18.80 billion) and real estate classifieds (₹3.51 billion).
Insider Ownership: 37.9%
Revenue Growth Forecast: 12.1% p.a.
Info Edge (India) Limited, a company with substantial insider transactions recently, has shown mixed financial dynamics. While its revenue growth at 12.1% per year is expected to outpace the Indian market's 9.6%, it remains below the high-growth benchmark of 20%. However, earnings are projected to increase significantly by 24.1% annually, surpassing the market average of 15.9%. Despite this promising profit outlook and a recent dividend announcement, concerns include a low forecasted return on equity at 5.6% and unstable dividend records alongside significant insider selling over the past three months.
Overview: Persistent Systems Limited operates globally, offering software products, services, and technology solutions with a market capitalization of approximately ₹71.92 billion.
Operations: The company generates revenue from three primary segments: Healthcare & Life Sciences (₹20.88 billion), Software, Hi-Tech and Emerging Industries (₹45.95 billion), and Banking, Financial Services and Insurance (BFSI) at ₹31.39 billion.
Insider Ownership: 34.3%
Revenue Growth Forecast: 13.5% p.a.
Persistent Systems, a key entity in India's tech sector, reported robust earnings growth of 18.7% last year with forecasts suggesting a continued 18.1% annual increase, outpacing the Indian market's average. Despite its promising profit trajectory and reliable dividends (0.53%), its revenue growth forecast at 13.5% annually lags behind the high-growth benchmark of 20%, though it still exceeds the market expectation of 9.6%. The firm recently announced quarterly sales of INR 27.37 billion and net income of INR 3.06 billion, reflecting strong operational performance but no substantial insider buying was reported over the past three months.
Overview: S.J.S. Enterprises Limited specializes in designing, developing, manufacturing, selling, and exporting decorative aesthetics for the automotive and consumer appliance sectors globally, with a market capitalization of ₹24.92 billion.
Operations: The primary revenue stream is generated from the manufacturing and selling of self-adhesive labels, totaling ₹6.28 billion.
Insider Ownership: 24.8%
Revenue Growth Forecast: 17.3% p.a.
S.J.S. Enterprises has demonstrated strong financial performance with significant year-over-year earnings growth and robust revenue increases, notably outpacing the Indian market averages. The company's price-to-earnings ratio stands below the market average, indicating potential value at its current price. Noteworthy is the high insider buying over recent months, reflecting confidence from those closest to the company's operations. However, its forecasted Return on Equity is relatively low, suggesting some challenges in efficiency or profitability ahead.
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:PERSISTENT and NSEI:SJS.
