Archean Chemical Industries And Two More Indian Exchange Growth Stocks With Major Insider Ownership
The Indian market has shown robust growth, with the Consumer Staples sector alone gaining 3.4% over the last week and overall market performance up by 46% over the past year, alongside an expected annual earnings growth of 16%. In such a flourishing environment, stocks like Archean Chemical Industries that feature significant insider ownership can be particularly appealing, as this often signals strong confidence from those who know the company best.
Top 10 Growth Companies With High Insider Ownership In India
Name | Insider Ownership | Earnings Growth |
Archean Chemical Industries (NSEI:ACI) | 22.9% | 28.9% |
Kirloskar Pneumatic (BSE:505283) | 30.6% | 29.8% |
Pitti Engineering (BSE:513519) | 33.6% | 28.0% |
Shivalik Bimetal Controls (BSE:513097) | 19.5% | 28.7% |
Jupiter Wagons (NSEI:JWL) | 11.1% | 27.2% |
Rajratan Global Wire (BSE:517522) | 19.8% | 33.5% |
Dixon Technologies (India) (NSEI:DIXON) | 24.9% | 34.5% |
Paisalo Digital (BSE:532900) | 16.3% | 23.8% |
JNK India (NSEI:JNKINDIA) | 23.8% | 31.8% |
Aether Industries (NSEI:AETHER) | 31.1% | 39.8% |
Let's explore several standout options from the results in the screener.
Archean Chemical Industries
Simply Wall St Growth Rating: ★★★★★★
Overview: Archean Chemical Industries Limited, which operates both domestically and internationally, specializes in the manufacturing and selling of specialty marine chemicals, with a market capitalization of approximately ₹88.49 billion.
Operations: The company generates revenue primarily from the sale of specialty marine chemicals, totaling approximately ₹13.30 billion.
Insider Ownership: 22.9%
Earnings Growth Forecast: 28.9% p.a.
Archean Chemical Industries, despite a recent dip in net income and earnings per share as reported for the fiscal year ending March 2024, is positioned for significant growth. The company's revenue and earnings are expected to expand at a rate well above the Indian market average, with forecasts indicating an annual revenue growth of 24% and earnings growth of approximately 28.93%. This robust financial outlook is complemented by its trading status, currently positioned slightly below fair value. However, it's important to note concerns such as an unstable dividend track record and recent executive departures which could impact investor confidence.
Greenlam Industries
Simply Wall St Growth Rating: ★★★★★☆
Overview: Greenlam Industries Limited is engaged in the manufacturing and selling of laminates, decorative veneers, and related products across India and globally, with a market capitalization of approximately ₹73.48 billion.
Operations: The company's revenue is divided into segments, with ₹0.58 billion from plywood, ₹2.09 billion from veneers and allied products, and ₹20.40 billion from laminate and allied products.
Insider Ownership: 24.6%
Earnings Growth Forecast: 28.6% p.a.
Greenlam Industries, with a recent dividend increase to INR 1.65, reflects a commitment to shareholder returns despite a low dividend coverage by free cash flows. The company has shown robust financial performance with year-on-year revenue growth of 13.9% and net income growth of 7.5%. Forecasts suggest earnings will grow by 28.6% annually, outpacing the Indian market's average. However, its debt levels raise concerns as they are poorly covered by operating cash flow, posing potential risks amidst its financial growth trajectory.
VA Tech Wabag
Simply Wall St Growth Rating: ★★★★☆☆
Overview: VA Tech Wabag Limited specializes in the design, supply, installation, construction, and operational management of drinking water, waste and industrial water treatment, and desalination plants both in India and internationally, with a market capitalization of approximately ₹81.76 billion.
Operations: The company generates revenue primarily from the construction and maintenance of water treatment plants, totaling ₹28.56 billion.
Insider Ownership: 29.5%
Earnings Growth Forecast: 20.8% p.a.
VA Tech Wabag, an Indian water treatment company, reported a significant increase in net income to INR 2.46 billion for FY 2024, up from INR 130 million the previous year. Despite this growth and a forecasted earnings increase of 20.8% per year outpacing the Indian market's average of 15.8%, challenges remain with a forecasted low return on equity of 16.2% in three years and high share price volatility recently. Insider transactions have not been substantial in volume over the past three months, indicating cautious optimism among insiders about the company’s future performance.
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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:ACINSEI:GREENLAM NSEI:WABAG.
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