The Indian stock market has shown robust performance, with a 1.9% gain recently and an impressive 45% increase over the past year, alongside forecasts of annual earnings growth of 16%. In such a thriving market, stocks with high insider ownership can be particularly appealing as they often indicate strong confidence from those who know the company best.
Top 10 Growth Companies With High Insider Ownership In India
Overview: AU Small Finance Bank Limited offers a range of banking and financial services across India, with a market capitalization of approximately ₹500.48 billion.
Operations: The bank's revenue is primarily derived from retail banking (₹91.18 billion), followed by treasury operations (₹17.04 billion) and wholesale banking (₹11.61 billion).
Insider Ownership: 24.3%
Earnings Growth Forecast: 23.9% p.a.
AU Small Finance Bank, a growth-oriented company with substantial insider ownership in India, has demonstrated robust financial performance with earnings growing by 21.9% annually over the past five years. Despite some shareholder dilution last year, both revenue and earnings are expected to grow significantly above market rates at 24.8% and 23.9% per year respectively. Recently, the bank's board approved plans to raise up to INR 110 billion through equity and debt to fuel further expansion, underscoring its aggressive growth strategy amidst a challenging economic environment marked by regulatory fines for minor infractions.
Overview: Heritage Foods Limited operates in India, focusing on the procurement and processing of milk and milk products, with a market capitalization of approximately ₹51.44 billion.
Operations: The company's revenue is primarily generated from its Dairy segment at ₹37.33 billion, with smaller contributions from Feed and Renewable Energy segments amounting to ₹1.60 billion and ₹0.09 billion respectively.
Insider Ownership: 37.2%
Earnings Growth Forecast: 25.3% p.a.
Heritage Foods, with significant insider ownership, shows promise as a growth company in India despite some challenges. Recently launching new products like laddus and ice creams to bolster domestic market presence, the company reported a substantial 83.8% earnings increase last year. However, its share price has been highly volatile recently. While dividends have been unstable, earnings are expected to grow by 25.34% annually over the next three years, outpacing the Indian market's forecasted growth.
Overview: Persistent Systems Limited operates in India, North America, and internationally, offering software products, services, and technology solutions with a market capitalization of approximately ₹69.79 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%
Earnings Growth Forecast: 17.9% p.a.
Persistent Systems, a key player in the Indian tech sector with significant insider ownership, is experiencing steady growth. Its earnings have increased by 18.7% over the past year, with forecasts predicting further annual growth of 17.92%. Although its revenue growth rate of 13.4% per year is below some market expectations, it still surpasses the Indian market average of 9.7%. Additionally, Persistent Systems maintains a reliable dividend yield of 0.55%, underpinning its appeal to investors seeking consistent returns amidst moderate growth projections.
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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:AUBANK NSEI:HERITGFOOD and NSEI:PERSISTENT.
