Stock Analysis

3 Indian Growth Companies With High Insider Ownership Expecting Up To 33% Revenue Growth

NSEI:AETHER
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Over the last 7 days, the Indian market has dropped 1.7%, driven by a pullback of 2.3% in the Financials sector. However, over the longer term, the market has risen by 43% in the last year with earnings forecast to grow by 17% annually. In this context, growth companies with high insider ownership can be particularly attractive as they often indicate strong confidence from those closest to the business and potential for substantial revenue increases.

Top 10 Growth Companies With High Insider Ownership In India

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%35%
Kirloskar Pneumatic (BSE:505283)30.6%30.1%
Dixon Technologies (India) (NSEI:DIXON)24.6%35.7%
Jupiter Wagons (NSEI:JWL)10.8%27.2%
Happiest Minds Technologies (NSEI:HAPPSTMNDS)31.9%20.7%
Paisalo Digital (BSE:532900)16.3%24.8%
JNK India (NSEI:JNKINDIA)21%31.8%
KEI Industries (BSE:517569)19.1%20.3%
Aether Industries (NSEI:AETHER)31.1%43.6%
Pricol (NSEI:PRICOLLTD)25.5%24%

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

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

Aether Industries (NSEI:AETHER)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Aether Industries Limited produces and sells advanced intermediates and specialty chemicals in India and internationally, with a market cap of ₹116.74 billion.

Operations: The company's revenue segments include Contract Manufacturing at ₹1.54 billion, Large Scale Manufacturing at ₹3.73 billion, and Contract Research and Manufacturing Services (CRAMS) at ₹832.89 million.

Insider Ownership: 31.1%

Revenue Growth Forecast: 33% p.a.

Aether Industries demonstrates strong growth potential with forecasted annual revenue and earnings growth rates of 33% and 43.63%, respectively, outpacing the Indian market averages. Despite a recent dip in profit margins from 19.8% to 13.4%, the company reported positive Q1 results with net income rising slightly to INR 299.32 million. Additionally, Aether's strategic supply agreement with Baker Hughes bolsters its position in contract manufacturing, enhancing its growth trajectory and market footprint.

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

Mrs. Bectors Food Specialities (NSEI:BECTORFOOD)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Mrs. Bectors Food Specialities Limited manufactures and distributes various food products in India, with a market cap of ₹85.82 billion.

Operations: The company's revenue from food products is ₹16.89 billion.

Insider Ownership: 36.2%

Revenue Growth Forecast: 14.7% p.a.

Mrs. Bectors Food Specialities exhibits promising growth with forecasted annual revenue and earnings growth of 14.7% and 19.4%, respectively, surpassing the Indian market averages. Recent Q1 results show a revenue increase to ₹4.44 billion from ₹3.79 billion year-over-year, alongside net income rising to ₹354.26 million from ₹348.5 million, indicating robust performance despite modest earnings growth projections compared to significant benchmarks for high-growth companies in India.

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

Pricol (NSEI:PRICOLLTD)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Pricol Limited, along with its subsidiaries, manufactures and sells instrument clusters and other allied automobile components to original equipment manufacturers and replacement markets in India and internationally, with a market cap of ₹62.54 billion.

Operations: The company's revenue primarily comes from its automotive components segment, which generated ₹23.55 billion.

Insider Ownership: 25.5%

Revenue Growth Forecast: 16.5% p.a.

Pricol Limited demonstrates strong growth potential with forecasted annual earnings growth of 24%, outpacing the Indian market's 16.9%. Recent Q1 results show revenue rising to ₹6.22 billion from ₹5.40 billion year-over-year, and net income increasing to ₹455.61 million from ₹319.38 million, reflecting robust performance. Despite recent executive changes, high insider ownership aligns management interests with shareholders, supporting long-term value creation in a competitive market environment where Pricol's revenue is expected to grow at 16.5% annually.

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