Stock Analysis

Unveiling AU Small Finance Bank And Two More Indian Growth Stocks With High Insider Ownership

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Over the past year, India's market has shown remarkable growth, surging by 44%, despite a recent 1.5% dip over the last seven days. In this context of promising earnings growth forecasted at 16% annually, stocks like AU Small Finance Bank that combine high insider ownership with substantial growth prospects stand out as particularly compelling.

Top 10 Growth Companies With High Insider Ownership In India

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%28.9%
Kirloskar Pneumatic (BSE:505283)30.6%30.1%
Pitti Engineering (BSE:513519)30.3%28.0%
Dixon Technologies (India) (NSEI:DIXON)24.6%34.4%
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%
Paisalo Digital (BSE:532900)16.3%23.8%
JNK India (NSEI:JNKINDIA)23.8%31.8%
Aether Industries (NSEI:AETHER)31.1%43.6%

Click here to see the full list of 85 stocks from our Fast Growing Indian Companies With High Insider Ownership screener.

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

AU Small Finance Bank (NSEI:AUBANK)

Simply Wall St Growth Rating: ★★★★★☆

Overview: AU Small Finance Bank Limited operates in India, offering a range of banking and financial services with a market capitalization of approximately ₹487.70 billion.

Operations: The bank's revenue is primarily derived from three segments: Treasury (₹17.04 billion), Retail Banking (₹91.18 billion), and Wholesale Banking (₹11.61 billion).

Insider Ownership: 24.3%

Earnings Growth Forecast: 24.2% p.a.

AU Small Finance Bank, a growth-oriented entity with substantial insider ownership, is poised for robust expansion with an expected annual revenue growth of 24.7% and earnings growth of 24.2%, outpacing the Indian market averages significantly. Despite recent shareholder dilution, the bank's strategic initiatives include raising up to INR 110 billion through equity and debt to fuel further growth. However, its forecasted return on equity at 17% remains modest compared to benchmarks.

NSEI:AUBANK Earnings and Revenue Growth as at Jul 2024

Info Edge (India) (NSEI:NAUKRI)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Info Edge (India) Limited is an online classifieds company operating in recruitment, matrimony, real estate, and education sectors both in India and internationally, with a market capitalization of approximately ₹889.57 billion.

Operations: The company generates revenue primarily through recruitment solutions and real estate, with ₹187.99 billion from recruitment and ₹3.51 billion from real estate activities.

Insider Ownership: 37.9%

Earnings Growth Forecast: 24.1% p.a.

Info Edge (India) has shown a promising turnaround, becoming profitable this year with net income reaching INR 5.75 billion from a previous loss. Earnings are set to grow by 24.1% annually, surpassing the Indian market's average. Despite slower revenue growth at 12.1% per year, it outperforms the market rate of 9.4%. Recent insider activities show more buying than selling, indicating confidence among executives despite some instability in dividend consistency and a low forecasted return on equity of 5.6%.

NSEI:NAUKRI Ownership Breakdown as at Jul 2024

Solara Active Pharma Sciences (NSEI:SOLARA)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Solara Active Pharma Sciences Limited is engaged in the manufacturing and distribution of active pharmaceutical ingredients (APIs) in India, with a market capitalization of approximately ₹28.99 billion.

Operations: The company generates ₹13.00 billion in revenue from its active pharmaceutical ingredients segment.

Insider Ownership: 25.9%

Earnings Growth Forecast: 107.1% p.a.

Solara Active Pharma Sciences has faced challenges, with a recent net loss of INR 134.6 million, yet it shows potential for recovery as earnings are expected to grow significantly. Revenue growth is projected at 12.6% annually, outpacing the Indian market forecast of 9.4%. Despite shareholder dilution last year and ongoing high share price volatility, Solara's strategic expansions like the new API facility in Visakhapatnam underscore its commitment to long-term growth and market compliance.

NSEI:SOLARA Ownership Breakdown as at Jul 2024

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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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