Stock Analysis

3 Growth Stocks With Strong Insider Ownership To Consider

NSEI:AUBANK
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In recent weeks, global markets have experienced notable fluctuations, with U.S. stocks giving back some gains amid uncertainties surrounding policy changes from the incoming Trump administration. This environment of volatility underscores the importance of identifying growth companies with high insider ownership, as these firms often demonstrate strong alignment between management and shareholder interests, potentially providing resilience during uncertain times.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
People & Technology (KOSDAQ:A137400)16.4%37.3%
Archean Chemical Industries (NSEI:ACI)22.9%43%
Kirloskar Pneumatic (BSE:505283)30.3%26.3%
Laopu Gold (SEHK:6181)36.4%33.9%
Seojin SystemLtd (KOSDAQ:A178320)31.1%52.4%
Medley (TSE:4480)34%31.5%
Findi (ASX:FND)34.8%64.8%
Plenti Group (ASX:PLT)12.8%107.6%
Brightstar Resources (ASX:BTR)16.2%84.6%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1538 stocks from our Fast Growing 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 provides a range of banking and financial services in India, with a market cap of ₹430.64 billion.

Operations: The bank's revenue segments include Treasury services generating ₹20.65 billion, Retail Banking contributing ₹116.13 billion, Wholesale Banking at ₹13.60 billion, and Other Banking Operations bringing in ₹3.86 billion.

Insider Ownership: 24.2%

Earnings Growth Forecast: 24.3% p.a.

AU Small Finance Bank demonstrates robust growth potential with earnings and revenue forecasted to grow significantly above the Indian market average. Despite a high level of bad loans at 2%, its price-to-earnings ratio is favorable compared to the broader Indian market. Recent partnerships in insurance aim to expand its service offerings, enhancing customer value and reach. However, regulatory penalties related to GST issues could pose challenges, highlighting areas for operational improvement.

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

Brainbees Solutions (NSEI:FIRSTCRY)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Brainbees Solutions Limited operates a multi-channel retailing platform for mothers’, babies’, and kids’ products in India and internationally, with a market cap of ₹284.05 billion.

Operations: The company's revenue is derived from its multi-channel retailing platform focused on products for mothers, babies, and kids across both Indian and international markets.

Insider Ownership: 10.3%

Earnings Growth Forecast: 104.4% p.a.

Brainbees Solutions is forecasted to achieve profitability within three years, with revenue expected to grow faster than the Indian market. Recent second-quarter results show a decrease in net loss from INR 1,008.19 million to INR 502.25 million year-over-year, indicating financial improvement despite ongoing regulatory challenges related to GST discrepancies and legal metrology violations. While insider ownership remains high, these regulatory issues could impact investor confidence and necessitate strategic adjustments for sustained growth.

NSEI:FIRSTCRY Earnings and Revenue Growth as at Nov 2024
NSEI:FIRSTCRY Earnings and Revenue Growth as at Nov 2024

Medley (TSE:4480)

Simply Wall St Growth Rating: ★★★★★★

Overview: Medley, Inc. operates platforms for recruitment and medical businesses in Japan and the United States, with a market cap of ¥136.92 billion.

Operations: The company's revenue segments include the Human Resource Platform Business at ¥19.45 billion, the Medical Platform Business at ¥6.52 billion, and New Services at ¥713 million.

Insider Ownership: 34%

Earnings Growth Forecast: 31.5% p.a.

Medley is forecasted to achieve significant earnings growth of 31.5% annually, outpacing the JP market's 8%. Despite high volatility in its share price, it trades at a substantial discount to its estimated fair value. Revenue is expected to grow at 25.6% per year, surpassing market averages. Recent strategic moves include potential acquisitions of ASFON TRUST NETWORK and Offshore Inc., which could enhance growth prospects despite the impact of large one-off items on earnings quality.

TSE:4480 Earnings and Revenue Growth as at Nov 2024
TSE:4480 Earnings and Revenue Growth as at Nov 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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