Over the last 7 days, the Indian market has remained flat, but it is up 44% over the past year with earnings forecast to grow by 17% annually. In this environment, growth companies with high insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dixon Technologies (India) Limited provides electronic manufacturing services in India and has a market cap of ?764.71 billion.
Operations: Dixon Technologies (India) Limited generates revenue from various segments including Home Appliances (?12.51 billion), Lighting Products (?7.92 billion), Mobile & EMS Division (?143.16 billion), and Consumer Electronics & Appliances (?41.21 billion).
Insider Ownership: 24.6%
Earnings Growth Forecast: 36.1% p.a.
Dixon Technologies (India) has demonstrated robust growth, with earnings increasing by 55.3% over the past year and revenue nearly doubling to ?65.88 billion in Q1 2024. Analysts forecast significant annual earnings growth of 36.06% and revenue growth of 23.4%, both outpacing the broader Indian market. Insider ownership remains high, reflecting confidence in sustained performance, though no substantial insider trading activity has been reported in the past three months.
Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India, with a market cap of ?364.52 billion.
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 grow its revenue by 11.3% annually, slightly outpacing the Indian market. Despite expected profitability within three years, recent financials show a net loss of ?8.39 billion for Q1 2024. Insider ownership remains significant but no substantial insider trading has been reported recently. Regulatory penalties for past stamp duty non-payments have been addressed without impacting operations or growth initiatives like partnerships and new product launches.
Overview: Varun Beverages Limited, with a market cap of ?1.96 trillion, operates as the franchisee for PepsiCo's carbonated soft drinks and non-carbonated beverages.
Operations: The company's revenue segments include the manufacturing and sale of beverages, amounting to ?180.52 billion.
Insider Ownership: 36.3%
Earnings Growth Forecast: 22.3% p.a.
Varun Beverages, with high insider ownership, has shown strong financial performance. Recent earnings reported a net income increase to ?12.53 billion for Q2 2024 from ?9.94 billion a year ago. Revenue also grew significantly, reaching ?73.78 billion compared to ?57.41 billion last year. Although the company carries substantial debt, its earnings are forecasted to grow significantly at 22% annually over the next three years, outpacing the Indian market average of 16.9%.
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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:DIXON NSEI:PAYTM and NSEI:VBL.
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