Over the last 7 days, the Indian market has experienced a 2.7% decline, yet it has shown impressive resilience with a 40% increase over the past year and earnings projected to grow by 17% annually. In such fluctuating conditions, identifying growth companies with strong insider ownership can provide valuable insights into potential stability and long-term commitment from those who know the business best.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Archean Chemical Industries Limited manufactures and sells specialty marine chemicals both in India and internationally, with a market cap of ?83.91 billion.
Operations: The company's revenue is primarily derived from its Marine Chemicals segment, totaling ?11.99 billion.
Insider Ownership: 22.9%
Archean Chemical Industries is poised for significant growth, with revenue and earnings expected to grow substantially above the Indian market average. Despite trading below its estimated fair value, recent financial results show a decline in sales and income compared to the previous year. The company faces regulatory penalties related to GST issues, impacting its financials. Key management changes include appointing experienced executives, potentially strengthening leadership amid challenges in maintaining a stable dividend track record.
Overview: Dixon Technologies (India) Limited provides electronic manufacturing services both in India and internationally, with a market cap of ?885.89 billion.
Operations: The company's revenue is primarily derived from its Mobile & EMS Division at ?143.16 billion, followed by Consumer Electronics & Appliances at ?41.21 billion, Home Appliances at ?12.51 billion, and Lighting Products at ?7.92 billion.
Insider Ownership: 24.6%
Dixon Technologies (India) is positioned for robust growth, with earnings projected to increase at 31.3% annually, outpacing the broader Indian market. Revenue is also set to rise significantly above market rates at 23.8% per year. Recent financials highlight strong performance with sales reaching ?65.80 billion for Q1 2024, doubling from a year ago, and net income nearly doubling as well. The company maintains high insider ownership without recent insider trading activity, supporting strategic alignment with shareholder interests.
Overview: Pricol Limited, along with its subsidiaries, produces and distributes instrument clusters and related automobile components to original equipment manufacturers and replacement markets both in India and globally, with a market cap of ?55.82 billion.
Operations: The company's revenue is primarily generated from its Automotive Components segment, which amounts to ?23.55 billion.
Insider Ownership: 25.5%
Pricol is poised for growth, with earnings projected to increase by 24% annually, surpassing the Indian market's average. Revenue is expected to grow at 16.5% per year, driven by strong performance in its Driver Information and Connected Vehicle Solutions segment. Recent financials show a revenue increase to ?6.22 billion for Q1 2024 from ?5.40 billion a year ago, with net income rising to ?455.61 million. High insider ownership aligns management interests with shareholders'.
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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:ACI NSEI:DIXON and NSEI:PRICOLLTD.
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