Fastest Growing Companies in India in 2017

People love to buy stocks of fastest growing companies. In a more colloquial term we call such stocks as growth stocks.

Early inclusion of such stocks in investment portfolio ensure maximum returns.

Stock investors considers EPS growth rate as the most reliable indicator of growth.

When EPS of companies grow at a fast rate, they attract more investment.

Earning per share (EPS) is one financial parameter that has direct influence on market price of its stocks.

If EPS is growing, stock price will also rise at same rate. If EPS is diminishing, stock price will also fall at same rate.

What is EPS? Why it is the most tracked financial parameter of a company?

EPS is easy to understand. It is also the most important stock data (if not tampered).

No other financial parameter influences stock price more directly than EPS.

Every change in EPS is instantly reflected in market price of stocks. Hence as an investor, it is always advisable to keep an eye of historical EPS movements of a company.

Standalone EPS may not be as interesting, but historical EPS makes a lot of meaning.

Earning per share (EPS) breaks down net profit of a company (PAT) into per share value.

Suppose a company has PAT of Rs 5.0 Crore & its number of share outstanding is 1.0 crore nos. In this case its EPS will be Rs 5/share (Rs 5 crore/1crore).

EPS is any day more important than PAT (net profit) for investors. Its is a must look deeply into EPS history before investing.

PAT’s historical figures gives only a feel about the company. Real impact of PAT is felt by investors when it is converted in EPS.

The Impact of EPS growth on market price is more direct than PAT growth.

P/E ratio dictates stocks market price?

A reliable stock always maintains its P/E ratio. Ratio between market price and EPS is P/E ratio (PE = Price/EPS).

A reasonable P/E ratio for any stock is 15.

Keeping P/E as constant, formula for market price will be:

Market Price1 = 15 x EPS1.

Same formula with EPS growth rate (R) will like this:

Market Price2 = 15 x EPS1 (1+R).

So this way, if EPS is growing its market price will also appreciate.

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For investors EPS history is everything?

After EPS, sales growth is another parameter that investors track the most. EPS is a product of companies profits (PAT). It is difficult for company to improve EPS if its sales turnover is not improving.

A typical formula for companies profit is: Sales x Profitability = Profit.

Considering a case where companies profitability remains constant at 10%. Lets incorporate this assumption in our formula and see how it evolves. Sales x 10% = Profit.

To improve companies Profit (PAT or EPS), companies sales must grow.

In business, fastest growing company are often graded in terms of its sales turnovers. Sales growth strategy is one of the most reliable and proven business strategy.

Companies which are able to increase its sales turnover year after year are likable. This liking becomes more dominant when sales turnover growth becomes fast.

Almost all good companies increase their sales every year. But companies with competitive moat do it faster than others. For these companies, increase in sales turnover represents market domination.

Not everyone can dominate the market. Only companies with exception product and astute management can achieve this feat.

Investors must keep a watch on sales growth figures of companies.

Additional check for fast growing companies

A portion of companies profit (PAT or EPS) is distributed a.s dividends to shareholders. The balance profit which remains with the company is called Reserves.

Companies reserves are declared in companies balance sheets. Investors like a continuously increasing Reserves. Growing reserves makes companies more self reliant.

A company which has huge reserves (like Hindustan Zinc) do not depend on debt to finance its working capital. Debt is a tool which temporarily improves companies cash flow. But in long run it increases companies expense and hence decreases companies profits. Sales – (Expense+ Interest on debt) = Profit.

Fastest Growing Companies in India 2017

(Updated on December’2017)

Long Term Growth

SL Company Revenue Growth (3Y) EPS Growth (3Y) Book Value Growth (3Y) Revenue Growth (5Y) EPS Growth (5Y) Book Value Growth (5Y)
1 Vakrangee Ltd. 27.02 42.36 42.87 24.21 134.45 115.61
2 Safari Industries (India) Ltd. 28.75 292.21 80 39.53 64.03 41.14
3 Ajanta Pharma Ltd. 17.96 29.36 38.24 23.97 45.62 39.33
4 Avanti Feeds Ltd. 34.16 44.93 52.41 47.35 46.42 43.01
5 Johnson Controls - Hitachi Air Conditioning India Ltd. 21.48 115.93 22.29 19.83 83.61 16.58
6 Minda Industries Ltd. 27.12 187.43 32.93 24.34 43.05 20.73
7 Page Industries Ltd. 21.5 20.08 32.07 25.05 24.23 32.05
8 Kovai Medical Center & Hospital Ltd. 16.31 36.05 32.22 18.77 38.05 30.91
9 Aksharchem (India) Ltd. 21.47 20.61 38.53 37.99 61.68 46.47
10 Natco Pharma Ltd. 39.83 64.89 28.73 31 48.73 25.22

Business Fundamentals

SL Company Sector Size of Company (M.Cap) Market Cap (Cr) ROE (%) Operating Margin (%) Debt Equity Ratio
1 Vakrangee Ltd. Technology - Computer Software Large 37,921.03 29.28 23.78 0.07
2 Safari Industries (India) Ltd. Chemicals - Plastic Packaging goods Small 1,276.37 10.31 6.81 0.44
3 Ajanta Pharma Ltd. Healthcare - Drugs & Pharma Medium 12,054.91 36.75 35.94 0.00
4 Avanti Feeds Ltd. FMCG - Marine Foods Medium 11,809.32 42.93 12.94 0.03
5 Johnson Controls - Hitachi Air Conditioning India Ltd. Cons Durable - ACs & Refrigerators Medium 6,899.82 20.34 8.77 0.14
6 Minda Industries Ltd. Automobile - Auto Ancillaries Medium 10,788.97 29.09 11.34 0.73
7 Page Industries Ltd. Textiles - Cloth Medium 24,889.76 44.54 20.61 0.13
8 Kovai Medical Center & Hospital Ltd. Healthcare - Health Services Small 1,423.10 29.36 24.84 0.54
9 Aksharchem (India) Ltd. Chemicals - Dyes & Pigments Small 564.30 47.45 32.85 0.24
10 Natco Pharma Ltd. Healthcare - Drugs & Pharma Medium 16,364.10 33.21 34.52 0.14

Price Valuation

SL Company Sector Size of Company (M.Cap) Price Market Cap (Cr) Current PE Current PB PEG (5Y)
1 Vakrangee Ltd. Technology - Computer Software Large 720.00 37,921.03 59.18 16.56 0.44
2 Safari Industries (India) Ltd. Chemicals - Plastic Packaging goods Small 630.00 1,276.37 95.85 8.09 1.50
3 Ajanta Pharma Ltd. Healthcare - Drugs & Pharma Medium 1,390.85 12,054.91 24.94 6.70 0.55
4 Avanti Feeds Ltd. FMCG - Marine Foods Medium 2,692.00 11,809.32 30.44 13.85 0.66
5 Johnson Controls - Hitachi Air Conditioning India Ltd. Cons Durable - ACs & Refrigerators Medium 2,536.00 6,899.82 87.52 13.89 1.05
6 Minda Industries Ltd. Automobile - Auto Ancillaries Medium 1,262.55 10,788.97 49.54 9.32 1.15
7 Page Industries Ltd. Textiles - Cloth Medium 22,560.05 24,889.76 83.24 32.50 3.44
8 Kovai Medical Center & Hospital Ltd. Healthcare - Health Services Small 1,365.55 1,423.10 23.00 5.36 0.60
9 Aksharchem (India) Ltd. Chemicals - Dyes & Pigments Small 684.95 564.30 13.46 2.54 0.22
10 Natco Pharma Ltd. Healthcare - Drugs & Pharma Medium 971.50 16,364.10 29.72 9.04 0.61

Long Term Returns

SL Company Sector Size of Company (M.Cap) 3-Year Return 5-Year Return 10-Year Return
1 Vakrangee Ltd. Technology - Computer Software Large 72.45 67.35 54.61
2 Safari Industries (India) Ltd. Chemicals - Plastic Packaging goods Small 54.2 65.85 54.98
3 Ajanta Pharma Ltd. Healthcare - Drugs & Pharma Medium 13.15 68.34 60.77
4 Avanti Feeds Ltd. FMCG - Marine Foods Medium 94.77 142.44 77.69
5 Johnson Controls - Hitachi Air Conditioning India Ltd. Cons Durable - ACs & Refrigerators Medium 47.43 82.03 33.21
6 Minda Industries Ltd. Automobile - Auto Ancillaries Medium 118.57 94.94 39.54
7 Page Industries Ltd. Textiles - Cloth Medium 32.81 46.12 49.11
8 Kovai Medical Center & Hospital Ltd. Healthcare - Health Services Small 38.62 51.19 35.67
9 Aksharchem (India) Ltd. Chemicals - Dyes & Pigments Small 57.58 101.72 47.78
10 Natco Pharma Ltd. Healthcare - Drugs & Pharma Medium 50.94 60.48 42.7

Disclaimer: All blog posts of getmoneyrich.com are for information only. No blog posts should be considered as an investment advice or as a recommendation. The user must self-analyze all securities before investing in one.

27 Comments on "Fastest Growing Companies in India in 2017"

  1. Ramesh Bhardwaj | January 7, 2018 at 6:01 am | Reply

    Excellent article!

  2. First time understood terminology . Thanks for simple beautiful . Thanks a lot

  3. Manish Agrawal | November 21, 2017 at 4:36 pm | Reply

    It is a Surprising thing that Eicher Motor is missing in your list.

  4. Dear Mani,

    You mentioned about “Pincon Spirit Ltd” but there are no mutual fund holdings in it. Their finance performance sounds good. Is it worth to invest in Pincon?

  5. Inox wind is a emerging company then why the share price is decreasing ? Please explain

  6. Great article. I think ideal way to analyse companies before investing in them is STOCK EDGE APP in mobile. Any investor can try it.

  7. High growth companies include Bajaj Finance / Bajaj Finserv, Mahanagar Gas Limited, D Mart, DHFL, ICICI Pru Life Insurance Co. etc.

  8. M.Chandraprabakaran | August 26, 2017 at 10:51 pm | Reply

    Hello Sir your article is very useful and person who is having only little knowledge about share market can easily understand to select good Indian stocks. I appreciate your good work. Keep going.
    Thank you
    M.Chandraprabakaran

  9. For wealth creation through investments the information given is very useful.Keep it up.

  10. Arinjaya Jain | August 8, 2017 at 4:36 am | Reply

    Highly educative. Appriciate more if current p/e ratio also given

  11. Thank you very much.
    Could you please suggest some companies name for long term investment as i have 10000 rupee of investment.

  12. Raushan singh | July 14, 2017 at 1:52 pm | Reply

    really praiseworthy. thinking

  13. 25 Arvind Remedies Ltd 316.79M 0.45 0.01 34.60 64.77 39.97

    The above mentioned company suspended the trading.

  14. If all based on proper reseaech it will proved.

  15. Damodaram Geeni | January 7, 2017 at 5:18 am | Reply

    I really appreciate your analysis through which people like me can certainly be enlightened and benefitted too

  16. THIS IS VERY GOOD INFORMATION . HIGHLY USEFUL FOR INVESTMENT IN INDIAN STOCKS. THANK YOU.

  17. The information given is very important for investment purpose. Thanks.

  18. You and your site are awesome!
    I prefer to invest along the views expressed here.
    And, I am doing well!
    How about a fortnightly/monthly list?

  19. YOU ARE TOO GOOD………… HIGHLY APPRECIATED , FOR SHARING SUCH IN FORMATIONS .

  20. You can certainly see your expertise in the article you write.
    The rena hopes for more passionate writers like you who aren’t afraid to mention how they
    believe. At all times follow yoiur heart.

  21. I like your articles and it helps me in narrowing down my shortlist but I request you to put the date and time in your articles. It makes things more clearer with respect to market timing

  22. in eps growth rate what Mkt price = 15XEPS ( 1+R ) Now what does R Means here Plase explain

  23. The financial information to build wealth over a period of time is excellent.

  24. Nice site

  25. I too made some research on the above four parameters and found that about 70% of these stocks match with similar search in the reuters.com, finance.google.com, and ft.com. They are really not moderate stocks and surely they may grow well and faster in five years’ time. But, in the market, there is no much demand for them and thats why they lie low.

  26. I have been searching online for the ideal way to analyse companies before investing in them and found your blog at the right time. So would you say that the companies with a decent sales turnover are good ones to opt for ?

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