Over the last 7 days, the Indian market has remained flat, but it is up 43% over the past year with earnings expected to grow by 17% per annum over the next few years. In this favorable environment, growth companies with high insider ownership often signal strong potential as insiders are likely confident in their firm's future prospects.
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 and has a market cap of ?511.29 billion.
Operations: AU Small Finance Bank Limited's revenue segments include Treasury (?18.63 billion), Retail Banking (?103.26 billion), Wholesale Banking (?12.74 billion), and Other Banking Operations (?3.78 billion).
Insider Ownership: 24.3%
Revenue Growth Forecast: 24.2% p.a.
AU Small Finance Bank's earnings have grown 19.9% annually over the past five years and are forecast to grow 24.16% per year, outpacing the Indian market's growth rate. The bank has a Price-to-Earnings ratio of 31x, below the Indian market average of 34.3x, indicating potential value. Despite recent shareholder dilution and a minor GST penalty, AU Small Finance Bank continues to demonstrate strong revenue and profit growth prospects with substantial insider ownership remaining stable over recent months.
Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India with a market cap of ?390.68 billion.
Operations: The company's revenue segments include data processing, which generated ?91.38 billion.
Insider Ownership: 20.7%
Revenue Growth Forecast: 11.1% p.a.
One97 Communications, known for its Paytm brand, is forecast to become profitable within three years with revenue growth expected to outpace the Indian market. The company recently sold its entertainment ticketing business to Zomato for INR 20.48 billion, focusing on core payments and financial services. Despite a penalty related to stamp duty non-payment, Paytm's strategic moves like partnering with FlixBus and launching 'Paytm Health Saathi' highlight its commitment to growth and innovation.
Overview: Senco Gold Limited manufactures and trades jewelry made of gold, silver, platinum, and other precious and semi-precious stones in India, with a market cap of ?91.99 billion.
Operations: The company generates ?53.40 billion in revenue from its jewelry business.
Insider Ownership: 24.1%
Revenue Growth Forecast: 17.5% p.a.
Senco Gold, expected to see significant earnings growth of 21.64% annually over the next three years, is trading at a good value with a P/E ratio below the industry average. Despite no substantial insider buying recently, insiders have bought more shares than sold in the past three months. Recent earnings reports show strong performance with net income rising to INR 512.72 million from INR 276.68 million year-on-year, indicating robust revenue and profit growth potential.
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:PAYTM and NSEI:SENCO.
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