Over the last 7 days, the Indian market has dropped 1.7%, driven by a loss of 2.3% in the Financials sector, although it has risen by 43% in the last year. In this fluctuating environment, identifying growth companies with high insider ownership can be crucial as they often indicate strong confidence from those who know the business best and are positioned to benefit from expected earnings growth of 17% per annum over the next few years.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Sansera Engineering Limited manufactures and sells high precision components for automotive and non-automotive sectors across India, Europe, the United States, and internationally, with a market cap of ₹75.27 billion.
Operations: The company generates revenue of ₹28.95 billion from the manufacture of precision-engineered components.
Insider Ownership: 34.9%
Revenue Growth Forecast: 15.3% p.a.
Sansera Engineering, with significant insider ownership, is forecasted to see earnings grow 28.78% annually, outpacing the Indian market's 16.9%. Recent Q1 results show a revenue increase to ₹7.44 billion and net income of ₹495.77 million. The company plans a major expansion in Karnataka, investing ₹21 billion over 3-5 years to boost manufacturing capacity and create jobs. Despite high debt levels, Sansera's strategic growth initiatives highlight its potential as a robust growth company in India.
Overview: Tega Industries Limited designs, manufactures, and installs process equipment and accessories for the mineral processing, mining, and material handling industries with a market cap of ₹118.67 billion.
Operations: Tega Industries generates revenue from the design, manufacture, and installation of equipment and accessories for mineral processing, mining, and material handling industries.
Insider Ownership: 19%
Revenue Growth Forecast: 17% p.a.
Tega Industries, with substantial insider ownership, is expected to see earnings grow 24.75% annually, surpassing the Indian market's 16.9%. Recent Q1 results show a revenue increase to ₹3.52 billion and net income of ₹367.44 million. Despite slower revenue growth forecasts (17% per year), the company's high return on equity (21.6%) in three years and strong historical earnings growth underscore its potential as a significant growth company in India.
Overview: VA Tech Wabag Limited, with a market cap of ₹78.36 billion, specializes in the design, supply, installation, construction, operation, and maintenance of drinking water, waste and industrial water treatment, and desalination plants both in India and internationally.
Operations: The company's revenue segments include ₹7.14 billion from drinking water treatment, ₹5.62 billion from waste water treatment, ₹3.48 billion from industrial water treatment, and ₹2.36 billion from desalination plants.
Insider Ownership: 29.5%
Revenue Growth Forecast: 15.2% p.a.
VA Tech Wabag, with significant insider ownership, is forecast to grow earnings by 22.8% annually, outpacing the Indian market's 16.9%. Recent Q1 results show revenue rising to ₹6.37 billion and net income at ₹550 million. Despite a moderate price-to-earnings ratio of 31.3x compared to the market's 33.8x, insiders have shown limited buying activity recently. The company's revenue growth rate (15.2% per year) is expected to be above the market average but below high-growth thresholds.
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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:SANSERA NSEI:TEGA and NSEI:WABAG.
