Over the last 7 days, the Indian market has risen 1.3%, and it is up 45% over the last 12 months, with earnings expected to grow by 17% per annum. In this thriving environment, growth companies with high insider ownership can be particularly appealing as they often signal confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Five-Star Business Finance Limited, with a market cap of ?228.20 billion, operates as a non-banking financial company in India.
Operations: Five-Star Business Finance Limited generates its revenue primarily from MSME Loans, Housing Loans, and Property Loans amounting to ?17.79 billion.
Insider Ownership: 18.7%
Earnings Growth Forecast: 20.8% p.a.
Five-Star Business Finance boasts strong insider ownership and impressive growth metrics. The company's earnings are forecast to grow at 20.8% annually, outpacing the Indian market's 17.2%, while revenue is expected to increase by 22.2% per year, significantly higher than the market's 10.1%. Recent approval of INR 25 billion in Non-Convertible Debentures and strategic board appointments indicate robust financial positioning and governance, enhancing its growth prospects further.
Overview: One97 Communications Limited, with a market cap of ?438.20 billion, offers payment, commerce and cloud, and financial services to consumers and merchants in India.
Operations: The company's revenue segments include Data Processing, which generated ?91.38 billion.
Insider Ownership: 20.7%
Earnings Growth Forecast: 64.5% p.a.
One97 Communications, the parent company of Paytm, is expected to achieve profitability within three years, with earnings forecasted to grow 64.47% annually. However, its revenue growth of 12.1% per year lags behind the desired 20%. Recent strategic moves include selling its entertainment ticketing business for INR 20.48 billion and partnering with FlixBus to enhance travel services. Despite a recent penalty for stamp duty non-payment, these initiatives strengthen Paytm's focus on core financial services and expand its market reach.
Overview: Triveni Engineering & Industries Limited operates in the sugar and allied businesses as well as engineering sectors both in India and internationally, with a market cap of ?104.10 billion.
Operations: The company's revenue segments are comprised of ?39.65 billion from Sugar & Allied Business - Sugar (Incl. Co-Generation), ?21.98 billion from Sugar & Allied Business - Distillery, ?2.93 billion from Engineering Businesses - Power Transmission, and ?2.33 billion from Engineering Businesses - Water.
Insider Ownership: 30.1%
Earnings Growth Forecast: 25% p.a.
Triveni Engineering & Industries demonstrates growth potential with earnings forecasted to grow 25.02% annually, outpacing the Indian market's 17.2%. Recent earnings reported a decline in net income to INR 312.7 million from INR 676.1 million a year ago, reflecting tighter profit margins at 6.7%. The company faces challenges like a recent GST penalty but remains focused on expansion, including launching new whisky products and maintaining substantial insider ownership for strategic alignment.
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:FIVESTAR NSEI:PAYTM and NSEI:TRIVENI.
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