Over the past week, the Indian market has remained flat, yet it has experienced a remarkable 45% rise over the last year with earnings projected to grow by 17% annually. In this context, identifying growth stocks with high insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the business in its future potential.
Top 10 Growth Companies With High Insider Ownership In India
Overview: MedPlus Health Services Limited operates in India as a retail trader of medicines and general items, with a market cap of ₹79.49 billion.
Operations: The company's revenue is primarily derived from its retail segment, which accounts for ₹57.43 billion, supplemented by its diagnostics segment contributing ₹852.29 million.
Insider Ownership: 13.5%
Earnings Growth Forecast: 41.8% p.a.
MedPlus Health Services shows promising growth potential with earnings forecast to grow significantly at 41.8% annually, outpacing the Indian market's average. Despite recent executive changes, including the resignation of a director linked to an investor divestment, insider ownership remains influential. The company's revenue is expected to increase by 16.7% per year, surpassing the broader market's growth rate. However, interest payments are not well covered by earnings and return on equity is projected to be modest at 11%.
Overview: Info Edge (India) Limited is an online classifieds company operating in recruitment, matrimony, real estate, and education sectors both in India and internationally, with a market cap of ₹1.06 trillion.
Operations: The company's revenue is primarily derived from its Recruitment Solutions segment, which generated ₹19.05 billion, followed by the 99acres Real Estate platform with ₹3.67 billion.
Insider Ownership: 37.7%
Earnings Growth Forecast: 23.6% p.a.
Info Edge (India) is poised for substantial earnings growth at 23.6% annually, exceeding the Indian market average. Despite a recent tax demand order and significant insider selling, the company's revenue is forecast to grow by 13% per year, surpassing the broader market's rate. Recent strategic appointments aim to bolster its public policy and revenue growth strategies. The company approved a final dividend of INR 12 per share but maintains an unstable dividend track record.
Overview: Solara Active Pharma Sciences Limited is engaged in the manufacturing, processing, formulation, and distribution of active pharmaceutical ingredients (API) across India and various international markets, with a market capitalization of ₹37.90 billion.
Operations: The company's revenue from active pharmaceutical ingredients (API) is ₹13 billion.
Insider Ownership: 10.4%
Earnings Growth Forecast: 107.1% p.a.
Solara Active Pharma Sciences is projected to achieve profitability within three years, with revenue growth forecasted at 12.6% annually, outpacing the Indian market's 10.1%. Despite past shareholder dilution, recent insider activity shows more buying than selling, albeit in modest amounts. The company's earnings are expected to grow significantly by over 100% per year. Solara reaffirmed its revenue guidance for fiscal 2025 between INR 14 billion and INR 15 billion amidst board changes and strategic initiatives like the employee stock option plan expansion.
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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:MEDPLUS NSEI:NAUKRI and NSEI:SOLARA.
