The Indian market has shown impressive resilience, with the Information Technology sector gaining 4.0% while the overall market remained flat over the last week, and a remarkable 44% increase over the past year. In this thriving environment, growth companies with high insider ownership can be particularly attractive as they often signal confidence from those closest to the business.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Dixon Technologies (India) Limited provides electronic manufacturing services in India and has a market cap of ?740.47 billion.
Operations: Dixon Technologies (India) Limited generates revenue from various segments including Home Appliances (?12.51 billion), Lighting Products (?7.92 billion), Mobile & EMS Division (?143.16 billion), and Consumer Electronics & Appliances (?41.21 billion).
Insider Ownership: 24.6%
Earnings Growth Forecast: 36% p.a.
Dixon Technologies (India) has demonstrated robust growth, with earnings increasing by 55.3% over the past year and revenue nearly doubling to ?65.88 billion in Q1 2024. Insider ownership remains high, aligning management interests with shareholders. The company’s earnings are forecast to grow significantly at 36% per year, outpacing the Indian market's expected growth of 16.9%. Revenue is also projected to expand at a strong rate of 23.4% annually, indicating sustained growth potential.
Overview: One97 Communications Limited offers payment, commerce and cloud, and financial services to consumers and merchants in India, with a market cap of ?359.08 billion.
Operations: One97 Communications Limited generates revenue primarily from data processing, amounting to ?91.38 billion.
Insider Ownership: 20.7%
Earnings Growth Forecast: 65.5% p.a.
One97 Communications, known for its Paytm brand, has seen significant insider ownership aligning management interests with shareholders. Despite recent regulatory penalties totaling ?4.71 million and a notable net loss of ?8.39 billion in Q1 2024, the company continues to innovate with new services like 'Paytm Health Saathi' and strategic partnerships such as the one with FlixBus. These initiatives aim to drive growth despite current financial challenges and high volatility in share price.
Overview: Sonata Software Limited, along with its subsidiaries, offers information technology services and solutions across the United States, Europe, the Middle East, Asia, India, and Australia with a market cap of ?170.88 billion.
Operations: Sonata Software Limited's revenue segments include information technology services and solutions across the United States, Europe, the Middle East, Asia, India, and Australia.
Insider Ownership: 37.8%
Earnings Growth Forecast: 30% p.a.
Sonata Software's earnings are expected to grow significantly at 30% annually, outpacing the Indian market. Despite a decline in profit margins from 6% to 3.2%, revenue is forecasted to grow at 13.1% per year, faster than the market average. The company has seen substantial insider buying recently, indicating confidence in its growth prospects. However, recent executive changes and an unstable dividend track record may pose some risks for investors.
Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.
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:DIXON NSEI:PAYTM and NSEI:SONATSOFTW.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
