Despite a flat performance over the last week, the Indian market has shown robust growth, rising 41% over the past year with earnings expected to grow by 17% annually. In this vibrant environment, companies with high insider ownership can be particularly compelling as they often signal strong confidence from those who know the business best.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Hindware Home Innovation Limited operates in India, focusing on consumer appliances, retail, and building products with a market capitalization of approximately ?25.59 billion.
Operations: The company generates revenue primarily through its building products segment at ?23.47 billion, followed by consumer appliances at ?4.54 billion, and retail business contributing ?0.36 billion.
Insider Ownership: 15.1%
Earnings Growth Forecast: 57.1% p.a.
Hindware Home Innovation is anticipated to experience significant earnings growth, projected at 57.1% annually, outpacing the broader Indian market's 17.1%. Despite this robust growth forecast, challenges such as a declining profit margin—from 2.6% to 1.6% over the past year—and insufficient coverage of interest payments by earnings present financial management concerns. Additionally, recent executive changes with the resignation of CEO Salil Kapoor could impact managerial stability and future performance strategies.
Overview: HPL Electric & Power Limited is an Indian company that manufactures and sells electric equipment under the HPL brand, with a market capitalization of approximately ?26.36 billion.
Operations: The company generates revenue primarily through two segments: Metering & Systems (?7.88 billion) and Consumer & Industrial (?6.11 billion).
Insider Ownership: 22.7%
Earnings Growth Forecast: 49% p.a.
HPL Electric & Power, despite its highly volatile share price, is poised for substantial growth with earnings expected to increase by 48.96% annually over the next three years. This growth rate surpasses the broader Indian market's forecast of 17.1%. However, challenges such as a low forecasted return on equity at 10.4% and poor coverage of interest payments by earnings could pose risks to financial stability. Recent developments include a board meeting to discuss annual results and dividend recommendations, alongside the launch of a new product line in international markets on April 22, 2024.
Overview: Sansera Engineering Limited specializes in the production and sale of high precision components for both automotive and non-automotive sectors across India, Europe, the United States, and other international markets, with a market capitalization of approximately ?54.30 billion.
Operations: The company generates ?26.76 billion in revenue from the manufacture of precision-engineered components.
Insider Ownership: 35.2%
Earnings Growth Forecast: 27.9% p.a.
Sansera Engineering is expected to achieve robust earnings growth of 27.93% annually, outpacing the broader Indian market's growth rate. Although its revenue growth forecast of 15.9% yearly is slower than some high-growth benchmarks, it still exceeds the market average significantly. Recent executive changes, including appointing a new CHRO with extensive experience, indicate a strategic focus on strengthening leadership amidst ongoing organizational adjustments. However, the company faces challenges such as high debt levels and a relatively low forecasted return on equity at 17.2%.
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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.
Companies discussed in this article include NSEI:HINDWAREAPNSEI:HPLNSEI:SANSERA and
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