Growth investing focuses on investing in companies which are growing rapidly. Companies from sectors like Bio-technology and IT generally grow faster than other companies. These stocks are expected to grow faster than the average growth of the market. They can also lead to massive wealth creation over time. High Growth Stocks in India are valued at a premium because they provide higher returns than their peers.
A company with constantly increasing revenue growth, EBITDA margin, PAT Margin and consistent return ratios is considered to be an appropriate one to invest in. The above characters are generally present in High Growth stocks.
- 5Y Revenue CAGR – The stocks with an Revenue CAGR of more than 15% for the past 5 years.
- Debt/Equity Ratio – The Stocks with a Debt/equity ratio of less than 1.
- 5Y Avg. EBITDA Margin – The stocks with more than 15% of Average EBITDA Margin for the past 5 years.
- 5Y Avg. RoE – The stocks with more than 15% of Average Return on Equity for the past 5 years.
- 5Y Avg. Net Profit Margin – The stocks with more than 15% of Average Net Profit Margin for the past 5 years
Top 10 High Growth Stocks in India:
- Affle (India) Ltd – Affle India is a technology company with a proprietary
consumer intelligence platform which has achieved a 44% revenue CAGR
and 67% PAT CAGR over FY19-21. It has ~2.2 Bn connected devices and its
converted users have grown at 38% CAGR over FY19-21 to ~105 mn.
- Caplin Point Labs. Ltd – The company is engaged in the manufacturing
and sourcing of APIs, finished formulations, R&D, clinical research with
presence in Latin America, USA and other nations. Presently, the company
has a very wide portfolio of pharma products with 4,000+ registered
products, 650+ formulations and presence in 26 therapeutic segments.
- Sona BLW Precision Forgings Ltd – It is one of India’s leading automotive
technology companies which designs, manufactures and supplies highly
engineered, mission critical automotive components and it is one of the
largest exporters of starter motors from India. Currently 14% of the
company’s revenue mix is contributed by BEVs and ~27% by Micro Hybrid/
- Clean Science and Tech. Ltd – The company manufactures functionally
critical Speciality Chemicals, Pharmaceutical Intermediates and FMCG
Chemicals. The differentiation in the process manufacturing between
Clean science and peers assisted company to offer products at
competitive price and thereby helped it gain meaningful market share
across its product portfolio.
- Gland Pharma Ltd – Established in Hyderabad, India in 1978, Gland
Pharma has grown over the years from a contract manufacturer of small
volume liquid parenteral products, to become one of the largest and
fastest growing injectable-focused companies, with a global footprint
across 60 countries.
- HCL Technologies Ltd – With a turnover of Rs. 75,379.0 crore in FY2021,
HCL Tech operates in all the key markets worldwide through a network of
global offices. In line with the industry trends, the US remains the largest
revenue driver at more than 60% in terms of geographical mix.
- PI Industries Ltd – It is a leading player in the domestic agricultural
inputs sector, primarily dealing in agrochemicals and plant nutrients. In the
CSM exports segment, its business interests include dealing in custom
synthesis and contract manufacturing of chemicals.
- Syngene International Ltd – Syngene is one of India’s leading CRAMS
Organisation. The company offers research services in medicinal chemistry
and biology in early stages of drug discovery, through process
development and contract manufacturing of bio-therapeutics for human
- Thyrocare technologies Ltd. – Thyrocare Technologies Ltd
(Thyrocare) is India’s first fully automated diagnostic laboratory with a
focus on providing quality at affordable costs to laboratories and hospitals
in India and other countries.
- Natco Pharma Ltd – It has emerged as an established pharmaceutical
company with a presence in formulations and APIs in both domestic and
export markets. The company owns eight manufacturing facilities and
Natco Research Centre for R&D in Hyderabad.
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