In the past year, India's stock market has experienced significant growth, rising by 43%, despite a recent dip of 1.3% over the last week. In such a flourishing yet fluctuating market environment, companies with high insider ownership can be particularly appealing as they often indicate strong confidence from those who know the business best.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Anupam Rasayan India Ltd specializes in custom synthesis and manufacturing of specialty chemicals, serving markets in India, Europe, Japan, Singapore, China, North America, and internationally with a market capitalization of approximately ?86.21 billion.
Operations: The company generates revenue primarily from the manufacturing of industrial chemicals, totaling ?14.75 billion.
Insider Ownership: 39.6%
Earnings Growth Forecast: 33% p.a.
Anupam Rasayan India is experiencing substantial growth, with earnings forecasted to increase significantly at 32.98% annually, outpacing the broader Indian market's 15.9%. However, revenue growth projections are modest at 19% annually, slightly above the market average of 9.6%. Shareholders have faced dilution over the past year despite these gains. The company also maintains a high level of non-cash earnings and a forecasted low Return on Equity (ROE) of 11.2% in three years. Recent activities include a proposed final dividend and lower quarterly earnings compared to last year, reflecting some financial pressures despite growth prospects.
Overview: Apollo Hospitals Enterprise Limited operates a network of hospitals, clinics, and pharmacies primarily in India, offering a range of healthcare services globally with a market capitalization of approximately ?917.63 billion.
Operations: The company generates revenue primarily from Healthcare Services (?99.39 billion), followed by Digital Health & Pharmacy Distribution (?78.27 billion), and Retail Health & Diagnostics (?13.64 billion).
Insider Ownership: 10.4%
Earnings Growth Forecast: 33% p.a.
Apollo Hospitals Enterprise is poised for robust growth, with earnings expected to surge by 33% annually over the next three years, significantly outstripping the Indian market's average. This growth is supported by a high Return on Equity forecast of 23.5%. Revenue projections also exceed market trends, with an anticipated increase of 15.8% per year. Despite these positive indicators, there has been no substantial insider buying in recent months, which might raise concerns about insider confidence levels. Additionally, Apollo Hospitals has expressed interest in acquiring Jaypee Healthcare, potentially expanding its market presence further.
Overview: Shalby Limited is a healthcare provider operating multi-specialty hospitals primarily in India, North America, Japan, and Indonesia, with a market capitalization of approximately ?30.49 billion.
Operations: The company generates revenue primarily through healthcare services, contributing ?8.90 billion, and manufacturing of implants, adding another ?0.87 billion.
Insider Ownership: 11%
Earnings Growth Forecast: 24.9% p.a.
Shalby has shown promising growth, with revenue increasing to INR 2.89 billion this quarter from INR 2.40 billion a year ago, though net income dipped to INR 166 million from INR 208.26 million. The company is expanding, having secured a lease for a new healthcare facility in Mumbai, enhancing its service capacity significantly. Earnings are expected to grow by approximately 24.88% annually, outpacing the Indian market's average. Despite these positives, insider buying has not been substantial in recent months.
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:ANURAS NSEI:APOLLOHOSP and NSEI:SHALBY.
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