Stock Analysis

3 Indian Growth Stocks With Up To 36% Insider Ownership

NSEI:MTARTECH
Source: Shutterstock

Over the last 7 days, the Indian market has experienced a 3.2% drop, yet it remains up by an impressive 40% over the past year, with earnings forecasted to grow by 17% annually. In this context of robust growth potential, stocks with significant insider ownership can be particularly appealing as they often indicate strong confidence from those closest to the company’s operations and strategy.

Top 10 Growth Companies With High Insider Ownership In India

NameInsider OwnershipEarnings Growth
Archean Chemical Industries (NSEI:ACI)22.9%34%
Kirloskar Pneumatic (BSE:505283)30.3%30.1%
Jupiter Wagons (NSEI:JWL)10.8%27.4%
Dixon Technologies (India) (NSEI:DIXON)24.6%31.3%
Paisalo Digital (BSE:532900)16.3%24.8%
Apollo Hospitals Enterprise (NSEI:APOLLOHOSP)10.4%32.3%
Sunteck Realty (BSE:512179)14.8%40.7%
Rajratan Global Wire (BSE:517522)18.3%35.8%
KEI Industries (BSE:517569)19.2%22.2%
Pricol (NSEI:PRICOLLTD)25.5%24%

Click here to see the full list of 91 stocks from our Fast Growing Indian Companies With High Insider Ownership screener.

Let's explore several standout options from the results in 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 ₹125.47 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%

Aether Industries, with significant insider ownership, is poised for robust growth as its earnings are forecasted to increase substantially over the next three years. The company recently secured a contract with Chemoxy International under the SEQENS group to produce bio-based products, potentially boosting revenue. However, profit margins have decreased from last year. Aether plans to raise up to ₹13 billion through various financial instruments, which could support its expansion initiatives.

NSEI:AETHER Earnings and Revenue Growth as at Oct 2024
NSEI:AETHER Earnings and Revenue Growth as at Oct 2024

Arvind Fashions (NSEI:ARVINDFASN)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Arvind Fashions Limited is involved in the wholesale and retail trading of garments and accessories both in India and internationally, with a market cap of ₹79.55 billion.

Operations: The company's revenue primarily comes from its Branded Apparels segment, which generated ₹43.47 billion.

Insider Ownership: 13%

Arvind Fashions, with substantial insider ownership, is set for significant earnings growth over the next three years, outpacing the Indian market. The company's revenue is forecast to grow annually at 12.2%, though interest payments are not well covered by earnings. Recent results show a turnaround from a net loss to a net income of ₹13.2 million in Q1 2024. However, recent executive changes may impact strategic direction and governance stability.

NSEI:ARVINDFASN Earnings and Revenue Growth as at Oct 2024
NSEI:ARVINDFASN Earnings and Revenue Growth as at Oct 2024

MTAR Technologies (NSEI:MTARTECH)

Simply Wall St Growth Rating: ★★★★★☆

Overview: MTAR Technologies Limited is a precision engineering solutions company that develops, manufactures, and sells high precision heavy equipment, components, and machines both in India and internationally, with a market cap of ₹54.86 billion.

Operations: The company generates revenue of ₹5.56 billion from its segment focused on manufacturing high precision and heavy equipment, components, and machines.

Insider Ownership: 36.4%

MTAR Technologies, with considerable insider ownership, is positioned for robust growth, with earnings projected to rise significantly at 40% annually over the next three years. Revenue is also expected to increase by 24.3% per year, surpassing the Indian market's growth rate. Despite a decline in profit margins from 16.9% to 7.2%, recent orders in defense and clean energy sectors totaling INR 154 million and US$16.73 million respectively indicate strong future potential.

NSEI:MTARTECH Earnings and Revenue Growth as at Oct 2024
NSEI:MTARTECH Earnings and Revenue Growth as at Oct 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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