The market has climbed by 3.4% over the past week, with every sector up and the Financials sector leading the way. In the last year, the market has climbed 44%, and earnings are expected to grow by 17% per annum over the next few years. In this thriving environment, growth companies with high insider ownership can often signal strong confidence from those closest to the business and potential for robust performance. Here are three Indian growth stocks that exemplify these traits.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Apollo Hospitals Enterprise Limited, along with its subsidiaries, provides healthcare services in India and internationally with a market cap of approximately ₹970.90 billion.
Operations: Apollo Hospitals Enterprise Limited's revenue is derived from Healthcare Services (₹102.83 billion), Retail Health & Diagnostics (₹14.12 billion), and Digital Health & Pharmacy Distribution (₹81.04 billion).
Insider Ownership: 10.4%
Earnings Growth Forecast: 32.7% p.a.
Apollo Hospitals Enterprise has shown strong growth, with earnings rising 55.2% over the past year and forecasted to grow at 32.67% annually, outpacing the Indian market's expected growth. Recent Q1 2024 results highlight a significant increase in net income to ₹3.05 billion from ₹1.67 billion a year ago, driven by higher revenue of ₹51.23 billion compared to ₹44.46 billion previously. Despite high debt levels, substantial insider ownership aligns management's interests with shareholders'.
Overview: Dixon Technologies (India) Limited provides electronic manufacturing services in India and has a market cap of ₹762.09 billion.
Operations: The company's revenue segments are as follows: Home Appliances: ₹12.51 billion, Lighting Products: ₹7.92 billion, Mobile & EMS Division: ₹143.16 billion, and Consumer Electronics & Appliances: ₹41.21 billion.
Insider Ownership: 24.6%
Earnings Growth Forecast: 36.6% p.a.
Dixon Technologies (India) has demonstrated robust growth, with earnings rising 55.3% over the past year and forecasted to grow at 36.6% annually, surpassing the Indian market's expected growth. Recent Q1 2024 results show net income of ₹1.34 billion on revenue of ₹65.88 billion, doubling from a year ago. The appointment of experienced HR leader Sunil Ranjhan strengthens management as substantial insider ownership continues to align interests with shareholders'.
Overview: Varun Beverages Limited, with a market cap of ₹2.01 trillion, operates as the franchisee for PepsiCo's carbonated soft drinks and non-carbonated beverages through its subsidiaries.
Operations: The company's revenue from the manufacturing and sale of beverages amounts to ₹180.52 billion.
Insider Ownership: 36.3%
Earnings Growth Forecast: 22.3% p.a.
Varun Beverages has shown strong earnings growth, with net income rising to ₹12.53 billion for Q2 2024 from ₹9.94 billion a year ago. Revenue also increased to ₹73.78 billion from ₹57.41 billion in the same period. The company's earnings are forecasted to grow at 22.3% annually, outpacing the Indian market's expected growth of 16.9%. High insider ownership aligns management interests with shareholders, although the company carries significant debt levels.
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:APOLLOHOSP NSEI:DIXON and NSEI:VBL.
