The Indian market has shown impressive performance, rising 2.5% in the last 7 days and 45% over the past year, with all sectors gaining ground. In this thriving environment, stocks with high insider ownership and robust earnings growth stand out as promising opportunities for investors seeking to capitalize on the market's upward trajectory.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dixon Technologies (India) Limited offers electronic manufacturing services in India and has a market cap of ?716.67 billion.
Operations: Dixon Technologies (India) Limited generates revenue from various segments, including ?12.05 billion from Home Appliances, ?6.33 billion from Security Systems, ?7.87 billion from Lighting Products, ?109.19 billion from the Mobile & EMS Division, and ?41.48 billion from Consumer Electronics & Appliances.
Insider Ownership: 24.6%
Earnings Growth Forecast: 34.4% p.a.
Dixon Technologies (India) has demonstrated strong growth with recent quarterly earnings showing sales of ?65.80 billion and net income of ?1.34 billion, nearly doubling from the previous year. The company's revenue is forecast to grow at 23.8% annually, outpacing the Indian market's average growth rate. Additionally, Dixon's earnings are expected to rise by 34.4% per year with a high return on equity projected at 30.7%, indicating robust future profitability and efficiency in operations.
Overview: Happiest Minds Technologies Limited offers IT solutions and services across various countries including India, the United States, Canada, and others, with a market cap of ?126.44 billion.
Operations: The company's revenue segments are comprised of Digital Business Services (?4.76 billion), Product Engineering Services (?8.51 billion), and Infrastructure Management & Security Services (?2.97 billion).
Insider Ownership: 31.9%
Earnings Growth Forecast: 20.7% p.a.
Happiest Minds Technologies, a growth company with significant insider ownership, recently launched Watch360, an AI-driven IT managed service aimed at enhancing operational efficiency and cost savings. Despite a decrease in dividends to INR 3.25 per share for FY2024, the company reported solid financials with annual revenue of INR 17.10 billion and net income of INR 2.48 billion. Forecasts show revenue and earnings growth rates exceeding 20% annually, suggesting strong future prospects in the Indian market.
Overview: Varun Beverages Limited, with a market cap of ?2.05 trillion, operates as the franchisee for PepsiCo's carbonated soft drinks and non-carbonated beverages.
Operations: The company's revenue segment primarily comprises the manufacturing and sale of beverages, generating ?164.67 billion.
Insider Ownership: 36.3%
Earnings Growth Forecast: 24.7% p.a.
Varun Beverages, with substantial insider ownership, has shown solid financial performance and growth prospects. The company reported Q2 2024 revenue of INR 73.78 billion, up from INR 57.41 billion a year ago, and net income of INR 12.53 billion compared to INR 9.94 billion last year. Recent amendments to its capital structure and an interim dividend of INR 1.25 per share indicate strategic financial management aimed at supporting its growth trajectory in the Indian market.
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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:HAPPSTMNDS and NSEI:VBL.
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