The Indian market has seen a 1.0% rise in the past week and an impressive 45% increase over the last year, with earnings projected to grow by 17% annually in the coming years. In this thriving environment, growth companies with high insider ownership can be particularly attractive as they often signal strong confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Five-Star Business Finance Limited operates as a non-banking financial company in India with a market cap of ₹221.94 billion.
Operations: Five-Star Business Finance Limited generates revenue primarily from MSME Loans, Housing Loans, and Property Loans amounting to ₹17.79 billion.
Insider Ownership: 18.7%
Earnings Growth Forecast: 19.8% p.a.
Five-Star Business Finance has shown substantial growth, with earnings increasing by 39.5% over the past year and revenue expected to grow at 22.2% annually, outpacing the Indian market's forecasted 10%. Recent board appointments of Rangarajan Krishnan and Srikanth Gopalakrishnan as joint managing directors highlight strong insider involvement, complemented by their participation in a private placement worth INR 78.93 million. Despite a low forecasted return on equity (19.8%), its P/E ratio of 24.6x suggests good value relative to the market average of 34.3x.
Overview: Godrej Consumer Products Limited, with a market cap of ₹1.52 trillion, manufactures and markets personal care and home care products across India, Africa, Indonesia, the Middle East, the United States of America, and internationally.
Operations: The company's revenue from manufacturing personal, household, and hair care products is ₹139.79 billion.
Insider Ownership: 13.8%
Earnings Growth Forecast: 58.8% p.a.
Godrej Consumer Products is forecast to achieve above-average market profit growth over the next three years, with earnings expected to grow 58.76% annually. Despite slower revenue growth at 10.1% per year, it surpasses the Indian market's average. Recent management changes include new senior appointments and a strategic shift into the pet care sector, aiming for diversification with an investment of ₹5 billion ($60 million) over five years.
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 ₹104.38 billion.
Operations: The company's revenue segments include Sugar & Allied Business - Sugar (₹39.65 billion), Distillery (₹21.98 billion), Engineering Businesses - Power Transmission (₹2.93 billion), and Water (₹2.33 billion).
Insider Ownership: 30.1%
Earnings Growth Forecast: 25% p.a.
Triveni Engineering & Industries, with substantial insider ownership, has forecasted earnings growth of 25.02% annually, outpacing the Indian market's average. Despite a decline in net income to ₹312.7 million from ₹676.1 million year-over-year and lower profit margins, it trades at a favorable P/E ratio of 29.1x compared to the market's 34.3x. The company recently launched new whisky products and commenced commercial operations in its IMFL business segment, indicating strategic diversification efforts.
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:GODREJCP and NSEI:TRIVENI.
