The Indian stock market has shown robust growth, rising 3.8% in the last week and an impressive 46% over the past year, with earnings projected to grow by 17% annually. In this buoyant environment, stocks with high insider ownership can be particularly appealing as they often indicate strong confidence from those who know the company best.
Top 10 Growth Companies With High Insider Ownership In India
Overview: Divgi TorqTransfer Systems Limited specializes in designing, developing, manufacturing, and supplying engineered turnkey solutions and components for automotive OEMs globally, with a market capitalization of ?25.17 billion.
Operations: The company generates ?2.62 billion in revenue from its auto components and parts segment.
Insider Ownership: 10.1%
Earnings Growth Forecast: 42.1% p.a.
Divgi TorqTransfer Systems, a key player in the Indian automotive sector, demonstrates strong growth potential with its revenue forecast to increase by 37.9% annually, significantly outpacing the broader market's 9.6%. Despite this robust revenue growth and a substantial projected annual earnings increase of 42.1%, challenges persist, notably a low return on equity forecast at 14.4% and dividends that are not well-covered by cash flows. The stock is currently trading at 37.6% below its estimated fair value, suggesting an undervaluation despite some financial vulnerabilities.
Overview: Nazara Technologies Limited is a company that operates a gaming and sports media platform both in India and internationally, with a market capitalization of approximately ?47.80 billion.
Operations: The company's revenue is generated primarily from E-Sports, contributing ?6.24 billion, and the AD Tech Business, adding ?1.15 billion.
Insider Ownership: 22.6%
Earnings Growth Forecast: 22.9% p.a.
Nazara Technologies, a gaming and sports media company in India, is actively pursuing growth through strategic acquisitions. Recently, it placed a bid to acquire the bankrupt Smaaash Entertainment, demonstrating its aggressive expansion strategy. The company aims to triple its game development division's revenue by FY25 with an INR 8.5 billion investment for mergers and acquisitions. Despite some shareholder dilution over the past year, Nazara’s earnings have shown strong growth and are expected to continue outpacing the market significantly. However, its forecasted Return on Equity remains low at 6.5%.
Overview: Praj Industries Limited is a global company specializing in bio-based technologies and engineering, with a market capitalization of approximately ?96.24 billion.
Operations: The company generates revenue primarily from its Process and Project Engineering segment, totaling ?34.52 billion.
Insider Ownership: 29.1%
Earnings Growth Forecast: 17.8% p.a.
Praj Industries, a prominent Indian company, has showcased consistent earnings growth at 34.7% annually over the past five years. The company's revenue is expected to increase by 14.8% per year, outpacing the Indian market projection of 9.6%. Despite this positive trend, its annual profit growth forecast of 17.8% slightly exceeds the market average but remains below a significantly high threshold. Recent executive changes and board meetings indicate ongoing strategic adjustments within its leadership structure.
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.
