Over the last 7 days, the Indian market has remained flat, yet it is up 43% over the past year with earnings expected to grow by 17% per annum over the next few years. In this context, identifying growth companies with high insider ownership can be particularly appealing as it often signals confidence in future performance and alignment of interests between shareholders and management.
Top 10 Growth Companies With High Insider Ownership In India
Overview: AU Small Finance Bank Limited provides a range of banking and financial services in India, with a market cap of ?501.25 billion.
Operations: AU Small Finance Bank 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%
AU Small Finance Bank is a growth company with high insider ownership, showing robust earnings growth of 24.2% annually, outpacing the Indian market's 16.9%. Recent Q1 results reported net income of ?5.03 billion, up from ?3.87 billion a year ago. However, shareholders have faced dilution recently and the bank received minor penalties related to GST and ATM cash-outs. Despite these issues, its revenue and earnings forecasts remain strong with significant expected annual growth over the next 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 ?379.03 billion.
Operations: The company's revenue segments include Data Processing, which generated ?91.38 billion.
Insider Ownership: 20.7%
One97 Communications, known for its Paytm brand, is expected to achieve profitability within three years with forecasted earnings growth of 63.5% annually. Recent strategic moves include selling its entertainment ticketing business to Zomato for ?20.48 billion and launching 'Paytm Health Saathi' for merchant partners. Despite a recent penalty related to stamp duty non-payment, the company remains focused on core financial services and expanding travel offerings through partnerships like FlixBus.
Overview: Persistent Systems Limited provides software products, services, and technology solutions in India, North America, and internationally with a market cap of ?777.20 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%
Persistent Systems is forecast to grow earnings at 19.22% annually, outpacing the Indian market's 16.9%. Recent developments include a partnership with Mage Data? to enhance its data security services and the launch of GenAI Hub for AI application development. Despite some executive changes, Persistent reported strong Q1 results with revenue of ?27.68 billion and net income of ?3.06 billion, reflecting solid financial performance and sustained growth potential in digital transformation services.
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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:AUBANK NSEI:PAYTM and NSEI:PERSISTENT.
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