In the last week, the Indian market has been flat, but it has seen an impressive 44% increase over the past year with earnings forecasted to grow by 17% annually. In such a robust environment, growth companies with high insider ownership can be particularly appealing as they often signal confidence in future performance and alignment of interests between shareholders and management.

Top 10 Growth Companies With High Insider Ownership In India

Click here to see the full list of 93 stocks from our Fast Growing Indian Companies With High Insider Ownership screener.

Let's explore several standout options from the results in the screener.

AU Small Finance Bank

Simply Wall St Growth Rating: ★★★★★☆

Overview: AU Small Finance Bank Limited provides a range of banking and financial services in India and has a market cap of ?506.12 billion.

Operations: AU Small Finance Bank Limited generates revenue from 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, with significant insider ownership, is poised for strong growth. The bank's revenue and earnings are forecasted to grow at 24.2% annually, outpacing the Indian market. Recent earnings showed a net income of ?5.03 billion for Q1 2024, up from ?3.87 billion a year ago. Despite facing minor regulatory penalties and management changes, the bank's price-to-earnings ratio of 30.7x remains attractive compared to the broader market at 34.3x.

• Get an in-depth perspective on AU Small Finance Bank's performance by reading our analyst estimates report here.

• According our valuation report, there's an indication that AU Small Finance Bank's share price might be on the expensive side.

One97 Communications

Simply Wall St Growth Rating: ★★★★☆☆

Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India, with a market cap of ?3.87 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, with substantial insider ownership, is focusing on core payments and financial services after selling its entertainment ticketing business to Zomato for ?20.48 billion. Despite regulatory penalties related to stamp duty issues, the company remains committed to compliance. Recent earnings reported a net loss of ?8.39 billion for Q1 2024, but strategic partnerships like the one with FlixBus and new product launches such as 'Paytm Health Saathi' highlight its growth potential in diverse sectors.

• Unlock comprehensive insights into our analysis of One97 Communications stock in this growth report.

• Our comprehensive valuation report raises the possibility that One97 Communications is priced higher than what may be justified by its financials.

Persistent Systems

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Persistent Systems Limited offers software products, services, and technology solutions across India, North America, and internationally with a market cap of ?764.88 billion.

Operations: The company's revenue segments include Healthcare & Life Sciences (?23.88 billion), Software, Hi-Tech and Emerging Industries (?46.41 billion), and Banking, Financial Services and Insurance (BFSI) (?32.08 billion).

Insider Ownership: 34.3%

Revenue Growth Forecast: 13.6% p.a.

Persistent Systems, a growth company with high insider ownership, reported strong Q1 2024 earnings with revenue of ?27.68 billion and net income of ?3.06 billion. The recent partnership with Mage Data? enhances its data security services portfolio, aiding digital transformation for clients. Despite the resignation of key executives and moderate dividend payments, Persistent's focus on innovative solutions like the GenAI Hub underscores its commitment to leveraging AI for business growth across industries.

• Click here to discover the nuances of Persistent Systems with our detailed analytical future growth report.

• The analysis detailed in our Persistent Systems valuation report hints at an inflated share price compared to its estimated value.

Turning Ideas Into Actions

• Explore the 93 names from our Fast Growing Indian Companies With High Insider Ownership screener here.

• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.

• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

• Find companies with promising cash flow potential yet trading below their fair value.

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:PERSISTENT.

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