Stock Analysis

3 High Insider Ownership Indian Stocks With Up To 24% Earnings Growth

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Amid recent fluctuations in the Indian stock market, with significant selloffs and concerns over high valuations and global uncertainties, investors may find it prudent to focus on stocks with strong internal fundamentals. High insider ownership can be a reassuring signal of management’s confidence in the company’s future, making such stocks potentially attractive during periods of market volatility.

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%30.1%
Pitti Engineering (BSE:513519)30.3%28.0%
Dixon Technologies (India) (NSEI:DIXON)24.6%34.4%
Shivalik Bimetal Controls (BSE:513097)19.5%28.7%
Jupiter Wagons (NSEI:JWL)10.8%27.2%
Rajratan Global Wire (BSE:517522)19.8%33.5%
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 85 stocks from our Fast Growing Indian Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

AU Small Finance Bank (NSEI:AUBANK)

Simply Wall St Growth Rating: ★★★★★☆

Overview: AU Small Finance Bank Limited, based in India, offers a range of banking and financial services with a market capitalization of approximately ₹490.15 billion.

Operations: The bank's revenue is primarily derived from three segments: Treasury (₹17.04 billion), Retail Banking (₹91.18 billion), and Wholesale Banking (₹11.61 billion).

Insider Ownership: 24.3%

Earnings Growth Forecast: 24.2% p.a.

AU Small Finance Bank has demonstrated robust growth with a 21.9% annual increase in earnings over the past five years, outpacing both revenue and earnings forecasts for the Indian market. Its price-to-earnings ratio at 31.9x remains below the market average, indicating potential value. However, shareholder dilution occurred last year, and its forecasted return on equity is considered low at 17%. Recent strategic moves include plans to raise significant capital through equity and debt to fuel further expansion.

NSEI:AUBANK Ownership Breakdown as at Jul 2024

Info Edge (India) (NSEI:NAUKRI)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Info Edge (India) Limited is an online classifieds company operating in recruitment, matrimony, real estate, and education sectors both domestically and internationally, with a market capitalization of approximately ₹896.29 billion.

Operations: The company generates revenue through its recruitment solutions and real estate segments, with ₹187.99 billion from recruitment and ₹3.51 billion from real estate activities.

Insider Ownership: 37.9%

Earnings Growth Forecast: 24.1% p.a.

Info Edge (India) has shown a promising turnaround, reporting a significant recovery with net income of ₹603.89 million in Q4 2024 from a substantial loss the previous year, alongside robust annual sales growth to ₹25.36 billion. Despite recent executive resignations, the company's insider transactions over the past quarter reflect more purchases than sales, indicating continued confidence among insiders. However, its forecasted revenue growth at 12.1% annually trails behind ambitious market expectations of 20%, and its projected return on equity remains low at 5.6%.

NSEI:NAUKRI Ownership Breakdown as at Jul 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 ₹2.09 trillion.

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

Insider Ownership: 36.4%

Earnings Growth Forecast: 24.5% p.a.

Varun Beverages, demonstrating robust growth, reported a 29.4% increase in earnings year-over-year with revenue reaching INR 43.98 billion in Q1 2024, up from INR 39.53 billion the previous year. The company's expansion into Zimbabwe through new subsidiaries indicates strategic growth ambitions beyond its current markets. Despite high levels of debt, insider ownership remains stable with no significant selling reported over the past three months, underpinning confidence in its management and future prospects.

NSEI:VBL Ownership Breakdown as at Jul 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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