Stock Analysis

3 High Growth Indian Stocks With Significant Insider Ownership

NSEI:AUBANK
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The Indian market has been flat in the last week but is up 42% over the past year, with earnings expected to grow by 17% per annum over the next few years. In this context, identifying growth companies with significant insider ownership can be a promising strategy for investors seeking to capitalize on strong market performance and future earnings potential.

Top 10 Growth Companies With High Insider Ownership In India

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%33.7%
Kirloskar Pneumatic (BSE:505283)30.4%30.1%
Dixon Technologies (India) (NSEI:DIXON)24.6%31%
Jupiter Wagons (NSEI:JWL)10.8%27.4%
Happiest Minds Technologies (NSEI:HAPPSTMNDS)32.5%22.2%
Paisalo Digital (BSE:532900)16.3%24.8%
Rajratan Global Wire (BSE:517522)19.8%35.8%
KEI Industries (BSE:517569)18.7%22.4%
Pricol (NSEI:PRICOLLTD)25.5%24%
Aether Industries (NSEI:AETHER)31.1%45.9%

Click here to see the full list of 92 stocks from our Fast Growing Indian Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

AU Small Finance Bank (NSEI:AUBANK)

Simply Wall St Growth Rating: ★★★★★☆

Overview: AU Small Finance Bank Limited provides a range of banking and financial services in India, with a market cap of ₹559.43 billion.

Operations: AU Small Finance Bank Limited's revenue segments include Treasury (₹18.63 billion), Retail Banking (₹103.26 billion), Wholesale Banking (₹12.74 billion), and Other Banking Operations (₹3.78 billion).

Insider Ownership: 24.3%

AU Small Finance Bank is a growth company with significant insider ownership, demonstrating strong earnings and revenue growth forecasts of over 24% annually, outpacing the Indian market. Recent strategic partnerships, like the one with United India Insurance Company, enhance its financial solutions portfolio. Despite some regulatory penalties related to GST issues and past shareholder dilution, AU SFB's expanding infrastructure and customer base position it well for future growth.

NSEI:AUBANK Ownership Breakdown as at Sep 2024
NSEI:AUBANK Ownership Breakdown as at Sep 2024

Dixon Technologies (India) (NSEI:DIXON)

Simply Wall St Growth Rating: ★★★★★★

Overview: Dixon Technologies (India) Limited provides electronic manufacturing services both in India and internationally, with a market cap of ₹822.66 billion.

Operations: Dixon Technologies (India) Limited 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%

Dixon Technologies (India) shows strong growth potential with earnings increasing by 55.3% over the past year and revenue forecasted to grow at 24% annually, outpacing the Indian market. The company’s Return on Equity is expected to reach 32.2% in three years, indicating robust profitability. Recent management changes, including appointing a new Chief Human Resource Officer with extensive experience, aim to strengthen its operational capabilities further.

NSEI:DIXON Ownership Breakdown as at Sep 2024
NSEI:DIXON Ownership Breakdown as at Sep 2024

Varun Beverages (NSEI:VBL)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Varun Beverages Limited, with a market cap of ₹2.12 trillion, operates as the franchisee for PepsiCo's carbonated soft drinks and non-carbonated beverages.

Operations: The company's revenue segment primarily includes the manufacturing and sale of beverages, generating ₹180.52 billion.

Insider Ownership: 36.3%

Varun Beverages is experiencing robust growth, with earnings rising 29% over the past year and revenue expected to grow at 15.3% annually, outpacing the Indian market. The company's Return on Equity is forecasted to be high at 30.6% in three years. Recent events include a stock split and an interim dividend of INR 1.25 per share, reflecting strong financial health despite its high debt levels.

NSEI:VBL Earnings and Revenue Growth as at Sep 2024
NSEI:VBL Earnings and Revenue Growth as at Sep 2024

Key Takeaways

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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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