In the last week, the Indian market has stayed flat, though it has risen 41% over the past 12 months with earnings forecasted to grow by 17% annually. In this context, identifying growth companies with high insider ownership can be particularly appealing as it often signals confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Godrej Consumer Products Limited, a fast-moving consumer goods company with a market cap of ₹1.55 trillion, manufactures and markets personal care and home care products across India, Africa, Indonesia, the Middle East, the United States of America, and internationally.
Operations: The company's revenue segments include the manufacturing of personal, household, and hair care products, generating ₹139.79 billion.
Insider Ownership: 13.8%
Earnings Growth Forecast: 58.3% p.a.
Godrej Consumer Products exhibits strong insider ownership and is expanding into the high-growth pet care sector, investing ₹5 billion over five years. Recent management changes include strategic appointments like Swati Bhattacharya as Global Head - Lightbox Creative Lab. Despite a slight dip in Q1 revenue to ₹34.09 billion, net income rose to ₹4.51 billion from ₹3.19 billion year-over-year, indicating robust earnings growth potential of 58% annually over the next three years.
Overview: Info Edge (India) Limited operates as an online classifieds company in recruitment, matrimony, real estate, and education services both in India and internationally, with a market cap of ₹1.01 trillion.
Operations: Info Edge (India) Limited generates revenue from recruitment solutions (₹19.05 billion), real estate services through 99acres (₹3.67 billion), and matrimony and education-related services.
Insider Ownership: 37.7%
Earnings Growth Forecast: 23.6% p.a.
Info Edge (India) shows substantial insider ownership and has been actively making strategic management appointments, such as Mr. Hoonar Janu as Senior Vice President and Head of Public Policy. The company reported a strong Q1 performance with net income rising to ₹2.33 billion from ₹1.59 billion year-over-year, driven by revenue growth to ₹8.28 billion from ₹6.90 billion. However, it faces regulatory challenges with a recent GST demand order for fiscal year 2019-20 under appeal.
Overview: Varun Beverages Limited, with a market cap of ₹2.10 trillion, operates as the franchisee for PepsiCo's carbonated soft drinks and non-carbonated beverages.
Operations: The company generates ₹180.52 billion from manufacturing and selling beverages under PepsiCo's trademarks.
Insider Ownership: 14.5%
Earnings Growth Forecast: 22.3% p.a.
Varun Beverages shows strong insider ownership and robust growth prospects, with earnings forecasted to grow 22.3% annually, outpacing the Indian market. Recent financials highlight significant revenue and net income increases, with Q2 2024 sales at ₹71.97 billion and net income at ₹12.53 billion. The company announced a stock split and interim dividend of ₹1.25 per share. However, it carries a high level of debt which investors should monitor closely.
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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:GODREJCP NSEI:NAUKRI and NSEI:VBL.
