In the past year, the Indian market has shown robust growth with a 45% increase, despite remaining flat over the last week. In this context, companies with high insider ownership that are poised for up to 27% earnings growth stand out as particularly compelling opportunities for investors seeking alignment with management's interests in growing markets.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Info Edge (India) Limited is an online classifieds company focusing on recruitment, matrimony, real estate, and education services both in India and globally, with a market capitalization of approximately ?894.35 billion.
Operations: The company generates revenue through segments including Recruitment Solutions at ?18.80 billion and 99acres for Real Estate at ?3.51 billion.
Insider Ownership: 37.9%
Earnings Growth Forecast: 24.1% p.a.
Info Edge (India) Limited has shown a robust growth trajectory with its earnings forecasted to increase by 24.1% annually, outpacing the Indian market's expected growth. Despite a historically unstable dividend record, insider transactions over the past quarter suggest confidence from within, as insiders have predominantly purchased shares. However, it's crucial to note that while revenue is growing faster than the market at 12.1% annually, this rate does not meet the high-growth benchmark of 20% per year. Additionally, recent executive resignations could signal internal challenges needing careful monitoring by investors.
Overview: Persistent Systems Limited, with a market cap of ?71.92 billion, engages in providing software products, services, and technology solutions across India, North America, and other global markets.
Operations: The company generates revenue from three primary segments: Healthcare & Life Sciences (?20.88 billion), Software, Hi-Tech and Emerging Industries (?45.95 billion), and Banking, Financial Services and Insurance (BFSI) at ?31.39 billion.
Insider Ownership: 34.3%
Earnings Growth Forecast: 18.1% p.a.
Persistent Systems Limited, a key player in the Indian IT sector, reported a substantial increase in quarterly earnings with net income rising to INR 3,064.15 million from INR 2,287.68 million year-over-year. Despite this growth and high insider ownership signaling strong internal confidence, the company's revenue growth forecast at 13.5% annually lags behind the high-growth benchmark of 20%. Additionally, recent changes in dividends and executive roles indicate potential shifts in strategy or focus that could impact future performance.
Overview: Sonata Software Limited offers information technology services and solutions across India, the United States, Europe, the Middle East, and Australia, with a market capitalization of approximately ?192.72 billion.
Operations: The company generates revenue primarily through two segments: products, which contribute ?61.29 billion, and services, accounting for ?24.84 billion.
Insider Ownership: 37.9%
Earnings Growth Forecast: 27.4% p.a.
Sonata Software, while experiencing a volatile share price recently, has shown promising financial trends. The company's earnings are expected to grow 27.4% annually, outpacing the Indian market projection of 15.9%. However, profit margins have dipped from last year, and the dividend track record remains unstable. Insider activity has been mixed with significant selling but no substantial buying in the past three months. Despite these challenges, revenue growth forecasts remain above market expectations at 12.7% annually.
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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:NAUKRI NSEI:PERSISTENT and NSEI:SONATSOFTW.
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