Stock Analysis

3 Growth Companies On The Indian Exchange With Insider Ownership Up To 25%

NSEI:SOLARA
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Over the last 7 days, the Indian market has dropped 4.0%, driven by declines in every sector. In contrast to this recent dip, the market is up 40% over the past year and earnings are forecast to grow by 17% annually. In such a fluctuating environment, growth companies with high insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the business.

Top 10 Growth Companies With High Insider Ownership In India

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%36%
Kirloskar Pneumatic (BSE:505283)30.6%30.1%
Dixon Technologies (India) (NSEI:DIXON)24.6%35.5%
Jupiter Wagons (NSEI:JWL)10.8%27.2%
Shivalik Bimetal Controls (BSE:513097)19.5%28.7%
Happiest Minds Technologies (NSEI:HAPPSTMNDS)31.9%20.7%
Paisalo Digital (BSE:532900)16.3%23.8%
JNK India (NSEI:JNKINDIA)20.9%31.8%
Rajratan Global Wire (BSE:517522)19.8%35.8%
KEI Industries (BSE:517569)19.1%20.3%

Click here to see the full list of 89 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.

One97 Communications (NSEI:PAYTM)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: One97 Communications Limited operates in India, offering payment, commerce and cloud, and financial services to consumers and merchants with a market cap of ₹317.76 billion.

Operations: Revenue segments for One97 Communications Limited include Data Processing, which generated ₹91.38 billion.

Insider Ownership: 20.7%

One97 Communications, known for its high insider ownership, has faced recent challenges including a significant regulatory penalty and widening net losses in Q1 2024. Despite these setbacks, the company continues to expand strategically through partnerships like the one with FlixBus and new product launches such as 'Paytm Health Saathi.' While earnings are forecasted to grow substantially per year, revenue growth is expected to outpace the Indian market but remain below 20% annually.

NSEI:PAYTM Ownership Breakdown as at Aug 2024
NSEI:PAYTM Ownership Breakdown as at Aug 2024

Senco Gold (NSEI:SENCO)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Senco Gold Limited manufactures and trades in jewelry and articles made of gold, silver, platinum, and other precious and semi-precious stones in India with a market cap of ₹76.50 billion.

Operations: The company's revenue primarily comes from the sale of gold jewelry and other articles, amounting to ₹52.41 billion.

Insider Ownership: 24.1%

Senco Gold, characterized by high insider ownership, has shown robust financial performance with annual earnings forecasted to grow significantly at 21.4%. Recent board changes and regulatory challenges have not impacted its operations. The company reported strong revenue growth for FY2024, reaching ₹52.84 billion from ₹41.09 billion the previous year. Although trading below analyst price targets and offering good relative value compared to peers, its Return on Equity is projected to be low at 17.4%.

NSEI:SENCO Earnings and Revenue Growth as at Aug 2024
NSEI:SENCO Earnings and Revenue Growth as at Aug 2024

Solara Active Pharma Sciences (NSEI:SOLARA)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Solara Active Pharma Sciences Limited operates in India by manufacturing, producing, processing, formulating, selling, importing, merchandising, distributing, trading in and dealing with active pharmaceutical ingredients (API), with a market cap of ₹31.46 billion.

Operations: Revenue from active pharmaceutical ingredients (API) amounts to ₹13.00 billion.

Insider Ownership: 25.9%

Solara Active Pharma Sciences, with significant insider ownership, is forecasted to achieve above-average market growth, becoming profitable within three years. Despite a volatile share price and recent dilution from a ₹4.50 billion equity offering, the company reaffirmed its revenue guidance of up to ₹15 billion for FY2025. Recent earnings showed modest sales growth but continued net losses. Regulatory compliance at its Visakhapatnam facility strengthens its operational credibility in the pharmaceutical sector.

NSEI:SOLARA Ownership Breakdown as at Aug 2024
NSEI:SOLARA Ownership Breakdown as at Aug 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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