Stock Analysis

Insiders Back These 3 Leading Growth Companies

NSEI:SOLARA
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As global markets navigate the challenges posed by rising U.S. Treasury yields and tepid economic growth, investors are increasingly looking for opportunities in growth stocks, which have shown resilience amid broader market fluctuations. In this environment, companies with high insider ownership can be particularly appealing as they often signal strong confidence from those closest to the business's operations and future prospects.

Top 10 Growth Companies With High Insider Ownership

NameInsider OwnershipEarnings Growth
Lavvi Empreendimentos Imobiliários (BOVESPA:LAVV3)17.3%21.1%
Arctech Solar Holding (SHSE:688408)37.8%25.3%
People & Technology (KOSDAQ:A137400)16.4%35.6%
Medley (TSE:4480)34%30.4%
Findi (ASX:FND)35.8%64.8%
Adveritas (ASX:AV1)21.2%144.2%
Plenti Group (ASX:PLT)12.8%107.6%
EHang Holdings (NasdaqGM:EH)32.8%81.4%
Credo Technology Group Holding (NasdaqGS:CRDO)13.9%95%
UTI (KOSDAQ:A179900)33.1%134.6%

Click here to see the full list of 1527 stocks from our Fast Growing Companies With High Insider Ownership screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Solara Active Pharma Sciences (NSEI:SOLARA)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Solara Active Pharma Sciences Limited is engaged in the manufacturing, processing, formulation, and distribution of active pharmaceutical ingredients (API) across India and various international markets, with a market cap of ₹37.10 billion.

Operations: The company's revenue is primarily derived from its active pharmaceutical ingredient segment, amounting to ₹12.22 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 95.4% p.a.

Solara Active Pharma Sciences is trading at a significant discount to its estimated fair value, suggesting potential upside. While the company has experienced shareholder dilution, insider activity shows more buying than selling recently. Revenue growth is forecasted at 13.3% annually, outpacing the Indian market average but below 20%. Solara is expected to achieve profitability within three years with strong earnings growth of approximately 95% per year, though its future Return on Equity remains modest at 10.4%.

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

Jinlei Technology (SZSE:300443)

Simply Wall St Growth Rating: ★★★★★☆

Overview: Jinlei Technology Co., Ltd. develops, produces, and sells wind turbine spindles as well as various castings and forgings both in China and internationally, with a market cap of CN¥7.73 billion.

Operations: Jinlei Technology generates revenue through the development, production, and sale of wind turbine spindles along with diverse castings and forgings on both domestic and international fronts.

Insider Ownership: 34.6%

Earnings Growth Forecast: 44.9% p.a.

Jinlei Technology's revenue is forecast to grow at 32.7% annually, surpassing the Chinese market average of 13.9%, with earnings expected to rise by 44.9% per year. However, recent financial results show a decline in net income and profit margins compared to last year, with current profit margins at 12.2%. Despite a volatile share price and low future Return on Equity projections, its Price-To-Earnings ratio of 34.1x is slightly below the industry average.

SZSE:300443 Ownership Breakdown as at Nov 2024
SZSE:300443 Ownership Breakdown as at Nov 2024

Stella Chemifa (TSE:4109)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Stella Chemifa Corporation manufactures and sells inorganic fluorine compounds both in Japan and internationally, with a market cap of ¥54.25 billion.

Operations: The company generates revenue from High-Purity Chemical sales amounting to ¥27.44 billion and Transportation services totaling ¥7.60 billion.

Insider Ownership: 23.5%

Earnings Growth Forecast: 23.5% p.a.

Stella Chemifa's earnings are projected to grow significantly at 23.5% annually, outpacing the Japanese market average of 8.8%, although revenue growth is slower at 9.6%. Despite trading at a substantial discount to its estimated fair value, the company's dividend sustainability is questionable with a reduced year-end payout forecasted. Recent insider activity data is lacking, and while past earnings have increased by 17.6%, future Return on Equity remains uncertain.

TSE:4109 Ownership Breakdown as at Nov 2024
TSE:4109 Ownership Breakdown 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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About NSEI:SOLARA

Solara Active Pharma Sciences

Manufactures, produces, processes, formulates, sells, imports, exports, merchandises, distributes, trades in, and deals in active pharmaceutical ingredients (API) in India, Asia Pacific, Europe, North America, South America, and internationally.

Undervalued with reasonable growth potential.