Over the last 7 days, the Indian market has remained flat, yet it boasts an impressive 45% growth over the past year. In this environment of anticipated annual earnings growth of 17%, stocks with high insider ownership can be particularly attractive as they often indicate strong confidence from those closest to the company.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dixon Technologies (India) Limited provides electronic manufacturing services in India and has a market cap of ₹697.35 billion.
Operations: Dixon Technologies generates revenue from various segments including Home Appliances (₹12.51 billion), Lighting Products (₹7.92 billion), Mobile & EMS Division (₹143.16 billion), and Consumer Electronics & Appliances (₹41.21 billion).
Insider Ownership: 24.6%
Revenue Growth Forecast: 23.4% p.a.
Dixon Technologies (India) has demonstrated substantial growth, with Q1 2024 revenue at ₹65.88 billion, nearly doubling from the previous year. Net income also rose significantly to ₹1.34 billion. The company's earnings are forecast to grow at an impressive 35.5% annually over the next three years, outpacing both its revenue growth of 23.4% and the broader Indian market's average growth rates. High insider ownership aligns management interests with shareholders, bolstering investor confidence in its long-term prospects.
Overview: Heritage Foods Limited procures and processes milk and milk products in India, with a market cap of ₹52.80 billion.
Operations: Heritage Foods Limited's revenue segments include Dairy at ₹38.40 billion, Feed at ₹1.70 billion, and Renewable Energy at ₹90.04 million.
Insider Ownership: 37.2%
Revenue Growth Forecast: 11% p.a.
Heritage Foods has shown strong earnings growth, with net income rising to ₹584.28 million in Q1 2024 from ₹167.38 million a year ago. Revenue for the same period increased to ₹10.38 billion from ₹9.26 billion, reflecting steady expansion despite a highly volatile share price and an unstable dividend track record. The company's earnings are forecast to grow at 17.92% annually, surpassing the Indian market's average of 16.7%, supported by high insider ownership aligning management and shareholder interests effectively.
Overview: Jupiter Wagons Limited manufactures and sells railway wagons, wagon components, and railway transportation equipment in India and internationally, with a market cap of ₹259.50 billion.
Operations: The company generates revenue primarily from its Auto Manufacturers segment, amounting to ₹37.70 billion.
Insider Ownership: 10.8%
Revenue Growth Forecast: 23.3% p.a.
Jupiter Wagons is expected to see significant earnings growth of 27.21% annually, outpacing the Indian market's 16.7%. Revenue is forecast to grow at 23.3% per year, also exceeding market averages. Despite recent shareholder dilution and a highly volatile share price, the company has demonstrated substantial profit growth of 111.2% over the past year and maintains high insider ownership, aligning management interests with shareholders. Recent board changes might impact future performance strategies.
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:DIXON NSEI:HERITGFOOD and NSEI:JWL.
