Stock Analysis

3 High-Insider Ownership Growth Stocks On The Indian Exchange

NSEI:AUBANK
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The market has been flat over the last week but has risen 42% in the past 12 months, with earnings expected to grow by 17% per annum over the next few years. In this 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%33.7%
Kirloskar Pneumatic (BSE:505283)30.4%30.1%
Happiest Minds Technologies (NSEI:HAPPSTMNDS)32.5%22.2%
Dixon Technologies (India) (NSEI:DIXON)24.6%36.6%
Jupiter Wagons (NSEI:JWL)10.8%27.4%
Paisalo Digital (BSE:532900)16.3%24.8%
Apollo Hospitals Enterprise (NSEI:APOLLOHOSP)10.4%32.3%
KEI Industries (BSE:517569)18.7%22.4%
Aether Industries (NSEI:AETHER)31.1%45.9%
Pricol (NSEI:PRICOLLTD)25.5%24%

Click here to see the full list of 94 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.

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 and has a market cap of ₹522.55 billion.

Operations: AU Small Finance Bank generates revenue from 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%

Earnings Growth Forecast: 24.3% p.a.

AU Small Finance Bank shows strong growth potential with earnings forecasted to grow 24.27% annually, outpacing the Indian market's 16.9%. Revenue is also expected to increase by 24.2% per year. However, recent penalties totaling INR 27.23 million related to GST issues may impact short-term financials. Despite these challenges, the bank's price-to-earnings ratio of 31.7x remains attractive compared to the broader Indian market at 34.5x, indicating good value for investors focused on growth companies with high insider ownership in India.

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

One97 Communications (NSEI:PAYTM)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India, with a market cap of ₹398.73 billion.

Operations: The company's revenue segments include Data Processing, which generated ₹91.38 billion.

Insider Ownership: 20.7%

Earnings Growth Forecast: 63.5% p.a.

One97 Communications, known for its Paytm brand, is forecasted to grow revenue by 11.1% annually and achieve profitability within three years. Recent strategic moves include selling its entertainment ticketing business to Zomato for INR 20.48 billion, enhancing focus on core financial services. Despite a penalty of INR 4.71 million related to stamp duty issues, the company continues to expand through partnerships like the one with FlixBus and new offerings such as 'Paytm Health Saathi.'

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

Persistent Systems (NSEI:PERSISTENT)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Persistent Systems Limited offers software products, services, and technology solutions across India, North America, and internationally with a market cap of ₹773.38 billion.

Operations: The company's revenue segments are comprised of Healthcare & Life Sciences (₹23.88 billion), Software, Hi-Tech and Emerging Industries (₹46.41 billion), and Banking, Financial Services and Insurance (BFSI) (₹32.08 billion).

Insider Ownership: 34.3%

Earnings Growth Forecast: 19.2% p.a.

Persistent Systems, with high insider ownership, has shown strong growth potential. Its earnings grew by 24.8% last year and are forecasted to grow at 19.22% annually, outpacing the Indian market's 16.9%. Recent developments include a partnership with Mage Data™ for enhanced data security services and the launch of GenAI Hub to accelerate AI application deployment. Leadership changes include Sachin Pathak's appointment as Chief Risk Officer and ongoing executive reshuffles impacting strategic direction.

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