Over the last 7 days, the Indian market has remained flat, yet it has surged by 40% over the past year with earnings forecasted to grow by 17% annually. In this context, identifying growth companies with high insider ownership can be a compelling strategy as it often signals strong confidence in future performance and alignment of interests between management and shareholders.
Top 10 Growth Companies With High Insider Ownership In India
Overview: AU Small Finance Bank Limited provides a range of banking and financial services in India, with a market capitalization of ?5.08 billion.
Operations: The company's revenue is primarily derived from Retail Banking at ?103.26 billion, followed by Treasury operations contributing ?18.63 billion, and Wholesale Banking generating ?12.74 billion.
Insider Ownership: 24.3%
Earnings Growth Forecast: 24.5% p.a.
AU Small Finance Bank is poised for significant growth, with earnings projected to rise over 24% annually, outpacing the Indian market. Despite past shareholder dilution, the bank maintains a favorable price-to-earnings ratio below the market average. Recent strategic partnerships with Niva Bupa and United India Insurance enhance its product offerings and customer reach. However, regulatory penalties related to GST issues could impact financials slightly. The bank's universal banking license application indicates ambitious expansion plans.
Overview: Five-Star Business Finance Limited is a non-banking financial company in India with a market cap of ?260.17 billion.
Operations: The company generates revenue from MSME Loans, Housing Loans, and Property Loans amounting to ?17.79 billion.
Insider Ownership: 18.7%
Earnings Growth Forecast: 20.5% p.a.
Five-Star Business Finance is set for substantial growth, with earnings and revenue projected to increase significantly above the Indian market rates. Its price-to-earnings ratio remains attractive compared to the market average. Recent strategic initiatives include a proposed amendment to company bylaws and approval of INR 25 billion in non-convertible debentures, indicating robust financing plans. The company's solid insider ownership is underscored by recent warrant issuances to key executives, reflecting confidence in its growth trajectory.
Overview: VA Tech Wabag Limited, with a market cap of ?116.37 billion, operates in the design, supply, installation, construction, operation, and maintenance of drinking water, waste and industrial water treatment, and desalination plants both in India and internationally.
Operations: The company's revenue segment primarily comprises ?29.30 billion from the construction and maintenance of water treatment plants.
Insider Ownership: 28.3%
Earnings Growth Forecast: 27.3% p.a.
VA Tech Wabag is poised for significant growth, with earnings forecasted to rise 27.3% annually, outpacing the Indian market. The company has secured major contracts, including a ?10 billion order from Indosol Solar and a USD 317 million project with Saudi Water Authority, enhancing its desalination leadership. Despite some insider selling, recent orders suggest strong operational momentum. However, an arbitration award against it could pose financial challenges if not successfully appealed.
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:AUBANK NSEI:FIVESTAR and NSEI:WABAG.
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