July 2024 Insight Into Three Indian Growth Stocks With High Insider Ownership
In the past year, India's market has experienced a significant upswing, rising by 45%, though it remained flat over the last week. With earnings expected to grow by 16% annually, growth companies with high insider ownership could be particularly appealing as they often indicate confidence from those most familiar with the company's inner workings.
Top 10 Growth Companies With High Insider Ownership In India
Name | Insider Ownership | Earnings Growth |
Archean Chemical Industries (NSEI:ACI) | 22.9% | 28.9% |
Pitti Engineering (BSE:513519) | 30.3% | 28.0% |
Kirloskar Pneumatic (BSE:505283) | 30.6% | 29.8% |
Shivalik Bimetal Controls (BSE:513097) | 19.5% | 28.7% |
Jupiter Wagons (NSEI:JWL) | 10.8% | 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% |
Pricol (NSEI:PRICOLLTD) | 25.5% | 26.9% |
Below we spotlight a couple of our favorites from our exclusive screener.
Hi-Tech Pipes
Simply Wall St Growth Rating: ★★★★★☆
Overview: Hi-Tech Pipes Limited is an Indian company that produces steel products for various sectors including infrastructure, construction, automobiles, energy, agriculture, defense, engineering, and telecom; it has a market capitalization of approximately ₹24.52 billion.
Operations: The company's revenue from manufacturing steel pipes and CR products totals approximately ₹26.99 billion.
Insider Ownership: 39%
Revenue Growth Forecast: 25.3% p.a.
Hi-Tech Pipes, despite its recent dip in quarterly net income and earnings per share, shows robust growth prospects with forecasted annual earnings growth significantly outpacing the Indian market. The company has not seen substantial insider selling in the past three months, indicating continued confidence among insiders. However, concerns arise as interest payments are poorly covered by earnings and shareholders have experienced dilution over the past year. This mixed financial health is crucial for investors focusing on growth companies with high insider ownership in India.
MTAR Technologies
Simply Wall St Growth Rating: ★★★★★☆
Overview: MTAR Technologies Limited is a precision engineering solutions company that develops, manufactures, and sells mission-critical precision assemblies and components both in India and internationally, with a market capitalization of ₹60.74 billion.
Operations: The company generates ₹5.81 billion from manufacturing high precision and heavy equipment, components, and machines.
Insider Ownership: 36.1%
Revenue Growth Forecast: 20.7% p.a.
MTAR Technologies, a key participant in the Indian aerospace sector, has secured a long-term contract worth up to US$120 million with Israeli Aerospace Industries, promising substantial recurring business over the next 15 years. Despite a recent downturn in quarterly and annual net income and earnings per share, MTAR is poised for significant revenue growth (20.7% per year) and earnings expansion (27.8% per year), outpacing broader market averages. Insider transactions have been balanced recently, reflecting steady confidence from within.
Pricol
Simply Wall St Growth Rating: ★★★★★☆
Overview: Pricol Limited is an Indian company that manufactures and sells instrument clusters and other automobile components to original equipment manufacturers and the replacement market, with a market capitalization of approximately ₹60.74 billion.
Operations: The company generates its revenue primarily from automotive components, amounting to ₹22.72 billion.
Insider Ownership: 25.5%
Revenue Growth Forecast: 17.3% p.a.
Pricol Limited, an Indian growth company with high insider ownership, has demonstrated robust financial performance with a significant increase in quarterly and annual earnings. Recent figures show a rise in net income to INR 415.02 million from INR 298.03 million year-over-year for the fourth quarter, alongside substantial full-year revenue growth to INR 22.85 billion. Forecasts predict earnings to grow significantly over the next three years, outperforming the broader Indian market's expectations. However, recent executive changes could impact future governance dynamics.
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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:HITECH NSEI:MTARTECH and NSEI:PRICOLLTD.
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