Over the last 7 days, the Indian market has dropped 1.1%. As for the longer term, the market has risen by 40% in the last year, with earnings forecast to grow by 17% annually. In this context, identifying growth companies with high insider ownership can be particularly rewarding as these stocks often benefit from strong internal confidence and potential for robust performance.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Krsnaa Diagnostics Limited, with a market cap of ?24.55 billion, provides diagnostic services in India.
Operations: The company's revenue primarily comes from Radiology and Pathology Services, amounting to ?6.50 billion.
Insider Ownership: 28.0%
Revenue Growth Forecast: 24.8% p.a.
Krsnaa Diagnostics, with significant insider ownership, is poised for robust growth. Earnings are forecast to grow at 36.85% annually, outpacing the Indian market's 17.1%. Recent developments include a Q1 revenue increase to ?1.77 billion and net income rise to ?179.21 million. Despite past shareholder dilution and a low future ROE forecast of 14.1%, the stock trades at good value compared to peers and industry estimates, bolstered by new contracts in Madhya Pradesh and Mumbai.
Overview: Lumax Auto Technologies Limited, with a market cap of ?35.23 billion, manufactures and sells automotive components in India through its subsidiaries.
Operations: The company's revenue segment primarily comprises the manufacturing and trading of automotive components, generating ?29.46 billion.
Insider Ownership: 39.1%
Revenue Growth Forecast: 14.0% p.a.
Lumax Auto Technologies, with substantial insider ownership, is positioned for significant growth. Earnings are expected to grow at 30.88% annually, surpassing the Indian market's 17.1%. Recent Q1 results show a revenue increase to ?7.73 billion and net income rise to ?316.98 million. Despite facing a tax demand of ?35.22 million and changes in board composition, the company’s earnings and revenue forecasts remain strong, trading slightly below its fair value estimate.
Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India with a market cap of ?424.32 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, a growth company with high insider ownership, is forecast to become profitable within three years and expects annual revenue growth of 11.1%. Recent events include the sale of its entertainment ticketing business to Zomato for ?20.48 billion and a strategic partnership with FlixBus to enhance travel services. Despite regulatory penalties totaling ?4.71 million for past stamp duty issues, Paytm continues to focus on core financial services and expanding its merchant support initiatives like 'Paytm Health Saathi'.
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:KRSNAA NSEI:LUMAXTECH and NSEI:PAYTM.
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