Stock Analysis

June 2024 Insight Into High Insider Ownership Growth Stocks On Indian Exchange

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The Indian stock market has remained stable over the past week, yet it has shown a remarkable increase of 45% over the last year, with earnings projected to grow by 16% annually. In this buoyant environment, stocks with high insider ownership can be particularly compelling as they often indicate a management team deeply invested in the company's success.

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)33.6%28.0%
Rajratan Global Wire (BSE:517522)19.8%33.5%
Dixon Technologies (India) (NSEI:DIXON)24.9%33.5%
Happiest Minds Technologies (NSEI:HAPPSTMNDS)37.8%22.7%
Jupiter Wagons (NSEI:JWL)11.1%27.2%
Paisalo Digital (BSE:532900)16.3%23.8%
JNK India (NSEI:JNKINDIA)23.8%31.8%
Chalet Hotels (NSEI:CHALET)13.1%27.6%
Kirloskar Pneumatic (BSE:505283)30.6%27.7%

Click here to see the full list of 82 stocks from our Fast Growing Indian Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

Dixon Technologies (India) (NSEI:DIXON)

Simply Wall St Growth Rating: ★★★★★★

Overview: Dixon Technologies (India) Limited specializes in providing electronic manufacturing services across India, with a market capitalization of approximately ₹68.72 billion.

Operations: The company's revenue is generated from several segments: Home Appliances (₹12.05 billion), Security Systems (₹6.33 billion), Lighting Products (₹7.87 billion), Mobile & EMS Division (₹109.19 billion), and Consumer Electronics & Appliances (₹41.48 billion).

Insider Ownership: 24.9%

Revenue Growth Forecast: 22% p.a.

Dixon Technologies, a notable Indian electronics manufacturer, is experiencing robust growth with revenue and earnings forecast to grow at 22% and 33.5% per year respectively, outpacing the broader Indian market. Despite no recent insider trading activity, the company maintains high-quality earnings with significant non-cash components. Recent strategic moves include a MOU with Acerpure India for manufacturing consumer appliances, enhancing its production capabilities and potentially boosting future revenues.

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

Persistent Systems (NSEI:PERSISTENT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Persistent Systems Limited is a global company that offers software products, services, and technology solutions, with a market capitalization of approximately ₹572.67 billion.

Operations: The company generates revenue from three primary segments: Healthcare & Life Sciences (₹20.88 billion), Software, Hi-Tech and Emerging Industries (₹45.95 billion), and Banking, Financial Services and Insurance (BFSI) at ₹31.39 billion.

Insider Ownership: 34.3%

Revenue Growth Forecast: 13.4% p.a.

Persistent Systems, a key player in India's tech sector, shows promising growth with earnings and revenue expected to outpace the market at 18.2% and 13.4% respectively. Despite not reaching the high-growth threshold of 20%, its forecasted return on equity is impressive at 26.3%. The company recently launched GenAI Hub, enhancing its product offerings and potentially boosting future growth. However, there's no significant insider trading activity reported in the past three months, which could be a point of concern for investors looking for high insider ownership as a confidence signal.

NSEI:PERSISTENT Earnings and Revenue Growth as at Jun 2024
NSEI:PERSISTENT Earnings and Revenue Growth as at Jun 2024

Varun Beverages (NSEI:VBL)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Varun Beverages Limited operates as a franchisee of PepsiCo, producing and distributing carbonated soft drinks and non-carbonated beverages, with a market capitalization of approximately ₹2.10 billion.

Operations: The company generates revenue primarily from the manufacturing and sale of beverages, totaling approximately ₹164.67 billion.

Insider Ownership: 36.4%

Revenue Growth Forecast: 16.7% p.a.

Varun Beverages, amidst a robust expansion strategy including a new subsidiary in Zimbabwe and starting production at its Uttar Pradesh facility, reported a substantial year-over-year earnings increase to INR 5.37 billion. With revenue growth outpacing the Indian market at 16.7% annually and earnings projected to grow by 24.66% per year, the company's financial trajectory appears strong despite high levels of debt and recent executive changes, including a new CFO and CHRO, which could impact internal dynamics.

NSEI:VBL Ownership Breakdown as at Jun 2024
NSEI:VBL Ownership Breakdown as at Jun 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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