Stock Analysis

Unveiling 3 Indian Growth Companies With High Insider Ownership And Earnings Growth Of Up To 33%

NSEI:DIXON
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The Indian market has shown robust performance, climbing by 2.4% over the past week and an impressive 46% in the last year, with earnings expected to grow by 16% annually. In this thriving environment, companies with high insider ownership and strong earnings growth are particularly compelling, as they often indicate a deep alignment between management’s interests and those of shareholders.

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%29.4%
Pitti Engineering (BSE:513519)33.6%28.0%
Shivalik Bimetal Controls (BSE:513097)19.5%28.7%
Jupiter Wagons (NSEI:JWL)11.1%27.2%
Rajratan Global Wire (BSE:517522)19.8%33.5%
Dixon Technologies (India) (NSEI:DIXON)24.9%33.7%
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 81 stocks from our Fast Growing Indian Companies With High Insider Ownership screener.

Let's dive into some prime choices out of from the screener.

Apollo Hospitals Enterprise (NSEI:APOLLOHOSP)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Apollo Hospitals Enterprise Limited operates a network of healthcare facilities, offering a range of services both in India and internationally, with a market capitalization of approximately ₹909.95 billion.

Operations: The company generates ₹99.39 billion from Healthcare Services, ₹13.64 billion from Retail Health & Diagnostics, and ₹78.27 billion from Digital Health & Pharmacy Distribution.

Insider Ownership: 10.4%

Earnings Growth Forecast: 33.2% p.a.

Apollo Hospitals Enterprise, with its recent interest in acquiring Jaypee Healthcare amid bankruptcy proceedings, showcases strategic growth pursuits. Despite high insider ownership, the company's revenue and earnings growth remains robust, outpacing the Indian market average. However, executive shifts and a substantial dividend increase reflect ongoing adjustments within its leadership structure and capital allocation priorities. These elements underscore Apollo's dynamic approach to expanding its core and digital health services amidst competitive pressures.

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

Dixon Technologies (India) (NSEI:DIXON)

Simply Wall St Growth Rating: ★★★★★★

Overview: Dixon Technologies (India) Limited specializes in providing electronic manufacturing services in India, with a market capitalization of approximately ₹74.83 billion.

Operations: The company's revenue is primarily derived from its Mobile & EMS Division (₹10.92 billion), followed by Consumer Electronics & Appliances (₹4.15 billion), Home Appliances (₹1.21 billion), Lighting Products (₹0.79 billion), and Security Systems (₹0.63 billion).

Insider Ownership: 24.9%

Earnings Growth Forecast: 33.7% p.a.

Dixon Technologies, a key manufacturer in India's consumer electronics sector, has demonstrated robust growth with a significant increase in annual revenue and profits, reflecting strong market demand. The company's recent MOU with Acerpure to produce consumer appliances further diversifies its product base, potentially bolstering future growth. Despite high insider ownership typically signaling confidence, Dixon lacks substantial recent insider buying which might temper investor enthusiasm. Nonetheless, the company's earnings are expected to grow substantially over the next three years, supported by strategic expansions and solid market positioning.

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

Persistent Systems (NSEI:PERSISTENT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Persistent Systems Limited operates in the software industry, offering products, services, and technology solutions across India, North America, and other global markets, with a market capitalization of approximately ₹70.09 billion.

Operations: The revenue segments for the company are distributed across 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%

Earnings Growth Forecast: 18% p.a.

Persistent Systems, a growth-oriented company in India, has shown promising performance with a 18.7% increase in earnings over the past year. The company pays a modest dividend of 0.54% and is expected to see revenue and earnings growth outpace the broader Indian market at 13.5% and 18% per year, respectively. Recent strategic initiatives include launching GenAI Hub to bolster enterprise AI applications, despite some executive turnover with key personnel resigning for personal reasons. These factors position Persistent as an evolving entity in technology integration and market expansion within high insider ownership frameworks.

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