Stock Analysis

Indian Exchange Growth Leaders With High Insider Ownership And Up To 53% Earnings Growth

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Over the last 7 days, the Indian market has remained stable, while showcasing a robust growth of 45% over the past year. With earnings expected to grow by 16% annually, companies with high insider ownership can be particularly appealing as they often indicate a strong alignment between company management and shareholder interests.

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.

Let's explore several standout options from the results in the screener.

Capacit'e Infraprojects (NSEI:CAPACITE)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Capacit'e Infraprojects Limited operates in India, focusing on engineering, procurement, and construction services with a market capitalization of approximately ₹24.54 billion.

Operations: The company generates its revenue primarily from engineering, procurement, and construction contracts, totaling ₹19.32 billion.

Insider Ownership: 31.4%

Earnings Growth Forecast: 24.4% p.a.

Capacit'e Infraprojects, a growth-oriented company with significant insider ownership, is trading below analyst price targets with expectations of a 29.3% price increase. Its earnings are projected to grow by 24.42% annually, outpacing the Indian market's 15.9%. Despite recent shareholder dilution and low forecasted return on equity at 11.5%, Capacit'e's revenue growth rate at 20.5% annually exceeds the market average significantly. Recent strategic moves include issuing INR 1 billion in non-convertible debentures to bolster long-term financing and leadership adjustments to strengthen governance and operational capabilities.

NSEI:CAPACITE Earnings and Revenue Growth as at Jul 2024

Lumax Auto Technologies (NSEI:LUMAXTECH)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Lumax Auto Technologies Limited, along with its subsidiaries, specializes in manufacturing and selling automotive components in India, with a market capitalization of approximately ₹39.06 billion.

Operations: The company generates revenue primarily through the manufacturing and trading of automotive components, totaling ₹28.22 billion.

Insider Ownership: 39.1%

Earnings Growth Forecast: 33.2% p.a.

Lumax Auto Technologies, with high insider ownership, has shown robust financial performance. In FY 2024, the company's revenue and net income surged to INR 28.67 billion and INR 1.30 billion respectively, indicating a strong year-over-year growth. Despite a historically unstable dividend track record, a dividend of INR 5.50 per share was proposed recently. Forecasted earnings growth is significant at 33.2% annually over the next three years, outperforming the Indian market's average of 15.9%. However, its revenue growth forecast of 14.9% annually is below the high-growth benchmark but still exceeds the market average of 9.7%.

NSEI:LUMAXTECH Earnings and Revenue Growth as at Jul 2024

PVR INOX (NSEI:PVRINOX)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: PVR INOX Limited operates as a theatrical exhibition company, showcasing, distributing, and producing movies in India and Sri Lanka, with a market capitalization of approximately ₹143.25 billion.

Operations: The company primarily generates revenue from movie exhibition, contributing ₹60.71 billion, and other activities including movie production and distribution, adding an additional ₹3.17 billion.

Insider Ownership: 11.6%

Earnings Growth Forecast: 53.1% p.a.

PVR INOX, a key player in India's cinema exhibition sector, continues to expand aggressively with recent openings in Hyderabad and Andhra Pradesh, enhancing its luxury and technological offerings. Despite a challenging financial performance with a net loss reported in the latest fiscal year, the company is expected to turn profitable within three years. High insider ownership could indicate confidence in long-term strategies, although its return on equity is projected to remain modest. The firm’s expansion strategy and adoption of advanced cinematic technologies underscore its commitment to growth and enhancing viewer experience.

NSEI:PVRINOX 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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