High Growth Stocks (From Indian Stock Market) as on January,2013
High growth stocks are always a favourite choice for investors. Following is a list of high growth stocks in Indian Stock Market as on 3rd January,2012.Before going to the list follow the methodology of preparing the list of high growth stocks-
- High growth rate (Sales and profits):- Out of around 7000 listed stocks I have only considered those stocks with high sales and profit growth rate. All the following stocks have consistent and high growth rate.Last 3 year’s CAGR sales and profit growth rate is more than 30%. Not only that all those stocks have also reported more than 30% growth in the last financial year also.
- Management efficiency:- To be sure about management efficiency I have considered stocks with high Return on Equity (ROE), Return on Capital Employed(ROCE) and high Net profit Margin. All the following high growth stocks have ROE and ROCE greater than 20% and net profit margin greater than 10%. (as per last financial year)
- Low debt:-For a fundamentally strong company growth rate should not be fueled by debt. So, I have eliminated those companies with debt to equity ratio greater than 0.7.
- Market Price Performance- Fundamentals of a company reflects in its stock market price over long term. That’s why I am also considering the price performance of those high growth stocks for last 3 years. I have eliminated those stocks with negative price return over last 3 years. The reason is if you find a fundamentally strong stock with high growth rate, high margins and also with high ROE and ROCE but the stock is delivering negative return over a long period then you can assume that something is wrong within that company.
After applying those advanced filters the following stocks are obtained:-
List of High Growth Stocks as on January,2013
|Company||3 Yr CAGR Profit (%)||3 Yr CAGR Sales (%)||Return on Equity (%)||Return on Capital Employed (%)||Net Profit Margin (%)||Debt to Equity Ratio (x)|
|AVT Natural Products||97.67||40.81||69.35||68.14||22.96||0.6|
|Coral India Finance & Housing||103.95||160.4||26.67||32.81||23.72||0.03|
|Kaveri Seed Company||38.81||44.61||26.98||26.45||15.61||0.12|
P.S-This is not a stock tips. Don’t invest in any of those stocks without adequate fundamental analysis. Those parameters should not be considered in isolation. Judge all other fundamental parameters before investing. I have just sorted out those stocks from the universe of around 7000 stocks using above mentioned methodology. However if you have any queries regarding any stocks or any of your investment concern, just feel free to write here. I will be happy to help you.You can also click here to get few free stock tips.
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