Over the last 7 days, the Indian market has dropped 3.1%, but it has risen by an impressive 42% over the past year, with earnings forecast to grow by 17% annually. In this context, identifying growth companies with high insider ownership can be crucial as insiders' confidence in their own companies often signals strong potential for future performance.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Apollo Hospitals Enterprise Limited, along with its subsidiaries, provides healthcare services both in India and internationally, with a market cap of ₹966.28 billion.
Operations: Apollo Hospitals Enterprise Limited generates revenue from three main segments: Healthcare Services (₹99.39 billion), Retail Health & Diagnostics (₹13.64 billion), and Digital Health & Pharmacy Distribution (₹78.27 billion).
Insider Ownership: 10.4%
Earnings Growth Forecast: 33% p.a.
Apollo Hospitals Enterprise demonstrates strong growth potential with earnings forecast to grow 33% annually, outpacing the Indian market's 16.7%. Recent earnings reports show significant revenue and profit increases, with annual sales reaching ₹191.66 billion and net income at ₹8.99 billion. Insider ownership remains high, indicating confidence in the company's future prospects. Additionally, Apollo's interest in acquiring Jaypee Healthcare aligns with its expansion strategy amidst board changes and dividend increases.
Overview: Godrej Consumer Products Limited is a fast-moving consumer goods company that manufactures and markets personal care and home care products across India, Africa, Indonesia, the Middle East, the United States of America, and other international markets with a market cap of ₹1.54 trillion.
Operations: The company's revenue primarily comes from the manufacturing of personal, household, and hair care products, amounting to ₹140.96 billion.
Insider Ownership: 13.8%
Earnings Growth Forecast: 59.6% p.a.
Godrej Consumer Products is expanding into the pet care market, aiming to diversify revenue streams with a ₹5 billion investment over five years. Despite a slight dip in quarterly revenue to ₹34.09 billion, net income rose significantly to ₹4.51 billion. Recent board changes include appointing Tejal Jariwala as Company Secretary and Compliance Officer. Insider ownership remains high, reflecting confidence in forecasted annual profit growth of 59.64% and strong return on equity projections at 20.5%.
Overview: One97 Communications Limited, with a market cap of ₹310.62 billion, offers payment, commerce and cloud, and financial services to consumers and merchants in India.
Operations: The company's revenue segments include data processing, which generated ₹91.38 billion.
Insider Ownership: 20.7%
Earnings Growth Forecast: 65.5% p.a.
One97 Communications, the parent company of Paytm, is forecast to achieve profitability within three years and has a high insider ownership. Despite recent volatility in its share price and slower-than-expected revenue growth at 11.4% per year, the company remains a strong player in the Indian market with strategic partnerships like FlixBus. Recent earnings showed a net loss of ₹8.39 billion for Q1 2024, but ongoing initiatives such as 'Paytm Health Saathi' aim to bolster future growth and resilience among merchant partners.
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:GODREJCP and NSEI:PAYTM.
