Over the last 7 days, the Indian market has dropped 4.0%, driven by pullbacks in every sector. In contrast to the past week, the market is up 40% over the past year with earnings expected to grow by 17% per annum over the next few years. In this context, identifying growth companies with high insider ownership can provide valuable insights into stocks that may have strong potential for sustained earnings growth and stability.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Apollo Hospitals Enterprise Limited, with a market cap of ?957.28 billion, provides healthcare services in India and internationally through its subsidiaries.
Operations: Apollo Hospitals Enterprise Limited generates revenue primarily from Healthcare Services (?99.39 billion), Retail Health & Diagnostics (?13.64 billion), and Digital Health & Pharmacy Distribution (?78.27 billion).
Insider Ownership: 10.4%
Earnings Growth Forecast: 33% p.a.
Apollo Hospitals Enterprise, a growth company with significant insider ownership, has shown strong financial performance with earnings growing 25% annually over the past five years. Its revenue is forecast to grow at 15.8% per year, outpacing the Indian market's average. Recent news includes a board meeting to discuss an employee stock option plan and potential acquisition interest in Jaypee Healthcare Limited. Earnings are expected to continue their robust growth trajectory at 33% annually.
Overview: Godrej Consumer Products Limited, a fast-moving consumer goods company with a market cap of ?1.51 trillion, manufactures and markets personal care and home care products in India, Africa, Indonesia, the Middle East, the United States of America, and internationally.
Operations: The company's revenue primarily comes from the manufacturing of personal, household, and hair care products, amounting to ?140.96 billion.
Insider Ownership: 13.8%
Earnings Growth Forecast: 59.9% p.a.
Godrej Consumer Products, characterized by substantial insider ownership, is forecast to see earnings grow 59.95% annually and achieve profitability within three years. However, its revenue growth of 9.4% per year is expected to lag behind the Indian market average of 9.8%. Recent events include an upcoming Q1 2025 earnings call and board meeting on August 7, where interim dividend declaration will be considered amidst leadership transitions in the GAUM division.
Overview: Senco Gold Limited manufactures and trades jewelry and articles made of gold, silver, platinum, and other precious and semi-precious stones in India, with a market cap of ?77.62 billion.
Operations: The company's revenue from the sale of gold jewelry and other articles amounts to ?52.41 billion.
Insider Ownership: 24.1%
Earnings Growth Forecast: 21.4% p.a.
Senco Gold, with significant insider ownership, is poised for robust growth, with earnings expected to rise 21.4% annually and revenue forecasted to grow 16.7% per year—both outpacing the Indian market averages. Despite a recent service tax demand of INR 2.27 million, which the company plans to appeal, Senco remains financially sound and undervalued compared to industry peers with a P/E ratio of 42.9x versus the industry average of 43.2x.
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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:APOLLOHOSP NSEI:GODREJCP and NSEI:SENCO.
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