Stock Analysis

Indian Exchange Growth Leaders With High Insider Ownership And 26% Earnings Growth

NSEI:NAZARA
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The Indian market has shown robust performance, climbing 1.1% in the last week and an impressive 45% over the past year, with earnings expected to grow by 16% annually. In such a thriving environment, stocks with high insider ownership and strong earnings growth are particularly appealing as they often indicate confidence from those who know the company best.

Top 10 Growth Companies With High Insider Ownership In India

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%28.9%
Pitti Engineering (BSE:513519)30.3%28.0%
Kirloskar Pneumatic (BSE:505283)30.6%29.8%
Shivalik Bimetal Controls (BSE:513097)19.5%28.7%
Jupiter Wagons (NSEI:JWL)10.8%27.2%
Rajratan Global Wire (BSE:517522)19.8%33.5%
Dixon Technologies (India) (NSEI:DIXON)24.9%34.5%
Paisalo Digital (BSE:532900)16.3%23.8%
JNK India (NSEI:JNKINDIA)23.8%31.8%
Pricol (NSEI:PRICOLLTD)25.5%26.9%

Click here to see the full list of 83 stocks from our Fast Growing Indian Companies With High Insider Ownership screener.

Underneath we present a selection of stocks filtered out by our screen.

Divgi TorqTransfer Systems (NSEI:DIVGIITTS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Divgi TorqTransfer Systems Limited operates in the manufacturing and sale of transfer cases, automatic locking hubs, and synchronizers for automotive OEMs across multiple countries including India, the US, China, and several others; it has a market capitalization of approximately ₹21.59 billion.

Operations: The company generates revenue primarily from its auto components and parts segment, totaling ₹2.53 billion.

Insider Ownership: 10.2%

Earnings Growth Forecast: 26.6% p.a.

Divgi TorqTransfer Systems, despite a recent dip in net income to INR 397.35 million from last year’s INR 511.62 million, shows promising growth prospects with expected earnings growth of 26.55% per year and revenue forecasted to outpace the Indian market at 16.2% annually. However, its dividend sustainability is questionable as it is not well-covered by free cash flows, and the return on equity in three years is projected to be low at 10.4%.

NSEI:DIVGIITTS Earnings and Revenue Growth as at Jul 2024
NSEI:DIVGIITTS Earnings and Revenue Growth as at Jul 2024

Greenpanel Industries (NSEI:GREENPANEL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Greenpanel Industries Limited specializes in the production and distribution of plywood, medium density fibre board (MDF), and related products across both domestic and international markets, with a market capitalization of ₹39.98 billion.

Operations: The company generates revenue primarily through two segments: Plywood and Allied Products, which contributed ₹1.62 billion, and Medium Density Fibre Boards (MDF) and Allied Products, with ₹14.05 billion in sales.

Insider Ownership: 13.6%

Earnings Growth Forecast: 22% p.a.

Greenpanel Industries, a company with high insider ownership, is set to grow earnings by 22% annually, outpacing the Indian market's 15.9%. Despite this growth, its revenue increase of 13.8% yearly lags behind the desired 20% threshold. The company maintains a competitive edge with a P/E ratio of 28x compared to the market’s 34x. However, challenges persist as profit margins have declined from last year's 14.4% to current levels at 9.1%, and recent insider transactions have not been significant in volume.

NSEI:GREENPANEL Earnings and Revenue Growth as at Jul 2024
NSEI:GREENPANEL Earnings and Revenue Growth as at Jul 2024

Nazara Technologies (NSEI:NAZARA)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Nazara Technologies Limited is a company that operates a gaming and sports media platform both in India and internationally, with a market capitalization of approximately ₹70.27 billion.

Operations: The company generates revenue primarily through three segments: Gaming (₹4.06 billion), E-Sports (₹6.32 billion), and AD Tech Business (₹1.04 billion).

Insider Ownership: 22.5%

Earnings Growth Forecast: 23.3% p.a.

Nazara Technologies, a growth-oriented firm with high insider ownership, is actively expanding its global footprint with recent subsidiaries in the U.S. and U.K., focusing on gaming and digital advertising. Despite a volatile share price, Nazara's earnings are expected to grow by 23.3% annually, outperforming the Indian market's 15.9%. However, concerns arise from shareholder dilution over the past year and low forecasted Return on Equity at 7%. Recent acquisitions include increasing stakes in European esports through notable transactions.

NSEI:NAZARA Ownership Breakdown as at Jul 2024
NSEI:NAZARA Ownership Breakdown as at Jul 2024

Summing It All Up

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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.

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