The Indian market has experienced a 2.7% decline over the last week, yet it remains robust with a 40% increase over the past year and earnings projected to grow by 17% annually. In this context, growth companies with high insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the business, aligning well with current market optimism and future growth expectations.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dollar Industries Limited manufactures and sells hosiery products, including knitted innerwear, casual wear, and thermal wear in India and internationally, with a market cap of ₹30.47 billion.
Operations: The company's revenue primarily comes from garments, hosiery goods, rainwear products, and related services, amounting to ₹15.78 billion.
Insider Ownership: 14.2%
Earnings Growth Forecast: 30.6% p.a.
Dollar Industries demonstrates strong growth potential with earnings forecasted to grow significantly at 30.6% annually, outpacing the Indian market's 17.3%. Recent earnings showed an increase in net income to ₹153.03 million for Q1 2024 from ₹145.26 million a year ago, reflecting solid financial progress despite slower revenue growth of 12.5% per year compared to peers. Insider ownership remains high, though recent insider trading activity is minimal, indicating stable internal confidence in the company's trajectory.
Overview: Krsnaa Diagnostics Limited offers diagnostic services in India and has a market cap of ₹27.76 billion.
Operations: The company's revenue is primarily derived from Radiology and Pathology Services, amounting to ₹6.50 billion.
Insider Ownership: 28.0%
Earnings Growth Forecast: 36.9% p.a.
Krsnaa Diagnostics is poised for substantial growth, with revenue expected to rise by 24.8% annually, surpassing the Indian market's 10.1%. Recent contracts in Jharkhand and Madhya Pradesh enhance its operational footprint in public-private partnerships. Despite a low dividend yield of ₹2.50 per share, earnings are forecasted to grow significantly at 36.9% annually over the next three years, outpacing market averages. Insider ownership remains stable without significant recent trading activity, indicating internal confidence amidst strategic expansions.
Overview: Lumax Auto Technologies Limited, along with its subsidiaries, manufactures and sells automotive components in India and has a market cap of ₹38.26 billion.
Operations: The company generates revenue of ₹29.46 billion from its manufacturing and trading of automotive components segment in India.
Insider Ownership: 39.1%
Earnings Growth Forecast: 23.7% p.a.
Lumax Auto Technologies anticipates revenue growth of 14.7% annually, surpassing the Indian market's average. Earnings are projected to grow significantly at 23.7% per year over the next three years, indicating robust potential despite a high debt level and unstable dividend history. The recent acquisition of Greenfuel Energy Solutions could enhance its strategic positioning. Insider ownership remains strong with no substantial trading activity reported recently, suggesting confidence in the company's future prospects amidst ongoing expansions and auditor changes.
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:DOLLAR NSEI:KRSNAA and NSEI:LUMAXTECH.
