The Indian market remained flat over the last week but has surged 45% over the past year, with earnings expected to grow by 17% annually. In this favorable environment, growth companies with high insider ownership can be particularly attractive as they often signal strong internal confidence and alignment with shareholder interests.
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 ?697.35 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%
Revenue Growth Forecast: 23.4% p.a.
Dixon Technologies (India) has demonstrated significant growth, with earnings increasing by 55.3% over the past year and revenue doubling to ?65.88 billion for Q1 2024 compared to the previous year. Earnings are forecasted to grow at 35.54% annually, significantly outpacing market expectations. The company’s high insider ownership aligns management interests with shareholders, reinforcing its position as a promising growth company in India's expanding market for consumer electronics manufacturing.
Overview: Laurus Labs Limited, with a market cap of ?241.06 billion, manufactures and sells medicines and active pharmaceutical ingredients (APIs) in India and internationally.
Operations: The company's revenue from the manufacture of active pharmaceutical ingredients, intermediates, and formulations is ?50.54 billion.
Insider Ownership: 27.8%
Revenue Growth Forecast: 13.9% p.a.
Laurus Labs has seen a decline in profit margins from 9.9% to 2.9% over the past year, with recent Q1 earnings showing net income of ?125.1 million compared to ?248.5 million a year ago. However, its earnings are forecasted to grow significantly at 50.8% annually, outpacing the Indian market's average growth rate of 16.7%. The company also recently entered a strategic alliance with Willow Biosciences for sustainable API manufacturing, potentially enhancing long-term growth prospects despite current financial challenges.
Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India, with a market cap of ?335.32 billion.
Operations: The company's revenue segments include Data Processing, which generated ?91.38 billion.
Insider Ownership: 20.7%
Revenue Growth Forecast: 11.4% p.a.
One97 Communications, the parent company of Paytm, has seen substantial insider ownership and is poised for growth despite recent financial challenges. The company reported a significant net loss in Q1 2024 but is forecasted to become profitable within three years. Recent strategic moves include a partnership with FlixBus to enhance travel services and the launch of 'Paytm Health Saathi' for merchant partners. However, regulatory penalties and ongoing M&A discussions may impact short-term performance.
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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:LAURUSLABS and NSEI:PAYTM.
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