The Indian market has experienced a remarkable 45% growth over the past year, although it remained flat in the last week, with earnings projected to grow by 17% annually. In such an environment, companies with significant insider ownership can be appealing as they often indicate confidence from those who know the business best and may align management interests with shareholder value.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Info Edge (India) Limited is an online classifieds company operating in recruitment, matrimony, real estate, and education sectors both in India and internationally with a market cap of ?1.06 trillion.
Operations: The company's revenue segments include ?19.05 billion from recruitment solutions and ?3.67 billion from its 99acres real estate platform.
Insider Ownership: 37.7%
Info Edge (India) demonstrates potential as a growth company, with forecasted earnings growth of 23.61% annually, outpacing the Indian market's expected 17.3%. Recent developments include a strategic INR 4.2 Crores investment in Nexstem India and new leadership appointments to drive public policy and revenue strategy. However, significant insider selling has been observed recently, and its return on equity is projected to remain low at 4.6% over three years.
Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India, with a market cap of ?465.61 billion.
Operations: The company's revenue is primarily generated from data processing services, amounting to ?91.38 billion.
Insider Ownership: 20.7%
One97 Communications is navigating significant growth prospects, with revenue expected to increase by 12.1% annually, outpacing the broader Indian market. Recent strategic moves include selling its entertainment ticketing business to Zomato for ?20.48 billion, bolstering its focus on core services and enhancing financial stability. However, despite these positive developments, the company faces challenges like high volatility in share price and ongoing unprofitability issues projected over the next three years.
Overview: Tega Industries Limited designs, manufactures, and installs process equipment and accessories for the mineral processing, mining, and material handling industries with a market cap of ?131.37 billion.
Operations: The company's revenue segments are comprised of ?1.98 billion from Equipments and ?13.71 billion from Consumables.
Insider Ownership: 19%
Tega Industries is experiencing robust growth, with earnings projected to rise significantly at 24.7% annually, surpassing the Indian market's growth rate. Revenue is also forecasted to grow faster than the market at 17% per year. Recent financial results show a notable increase in net income and sales compared to the previous year. Despite no substantial insider trading activity recently, high insider ownership aligns interests with shareholders, supporting long-term growth potential.
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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:NAUKRI NSEI:PAYTM and NSEI:TEGA.
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