Fastest Growing Companies in India in 2017

People loves to buy stocks of fastest growing companies. Early inclusion of such stocks in investment portfolio ensure maximum returns. Stock investors considers EPS growth rate as the most reliable indicator. Companies whose EPS is growing fast are perfect for investing.

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 not only easy to understand but 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 more important than PAT for investors. One must look deeply into EPS history before investing.

PAT’s historical figures gives only a feel about the company. Read feedback of companies bottom line comes from EPS history. The Impact of EPS growth on market price is more direct than PAT.

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.

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 July’2017)

Top stocks with good growth rates

SL Company name  Market cap PAT Growth (5Years) Revenue Growth (5 Years) EPS Growth (5 Years)
1 Avenue Supermarts Ltd   568.67B 51.29 40.05 54.35
2 Piramal Enterprises Ltd   509.24B 62.21 31.7 61.5
3 Interglobe Aviation Ltd   457.14B 63.83 27.27 63.7
4 Motherson Sumi Systems Limited   683.89B 43.14 23.96 42.2
5 AU Small Finance Bank Ltd   167.24B 86.56 43.87 86.56
6 RBL Bank Ltd   205.56B 47 51.51 46.36
7 Bajaj Finance Ltd   851.49B 35.21 35.77 25.72
8 Essar Oil Ltd   382.40B 120.24 17.91 112.32
9 Vakrangee Ltd   232.09B 49.59 24.21 48.29
10 Natco Pharma Ltd.   174.44B 52.15 31.57 46.69
11 Quess Corp Ltd   118.67B 78.73 45.52 79.09
12 Dewan Housing Finance Corporation Ltd.   146.95B 55.73 31.25 44.89
13 Adani Ports & Special Economic Zone Ltd   791.21B 28.48 25.63 27.63
14 Maruti Suzuki India Ltd   2.28T 34.9 16.46 33.7
15 Edelweiss Capital Limited   167.67B 36.23 31.72 32.99
16 Ajanta Pharma Ltd   128.94B 45.67 24.2 45.67
17 Indusind Bank Ltd   944.80B 29.01 21.87 23.05
18 IIFL Holdings Ltd   187.07B 39.13 21.19 39.65
19 Avanti Feeds Ltd   74.67B 50.19 47.35 50.19
20 Yes Bank Limited   718.06B 27.87 21.1 23.2
21 Rajesh Exports Ltd.   200.81B 24.75 56.67 24.75
22 HDFC Bank Limited   4.33T 23.79 21.05 21.38
23 Zee Entertainment Enterprises Limited   520.86B 30.41 16.17 30.65
24 Can Fin Homes Ltd   84.79B 39.99 36.42 35.12
25 Motilal Oswal Financial Services Limited   155.03B 28.22 29.98 28.16

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Disclaimer: All blog posts of 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.

About the Author

I am a Blogger with a passion for investment education. I started blogging in 2007-08. Blogging didn’t happened to me as a coincidence, it was a conscious decision. The idea with which I started blogging still stands true. In my starting days my finances remained tight. I was reading heavily about how to manage finance. One day I got hold of a book which my father gifted me in 2003. It was stacked below my graduation books. It was a small-thin book with its cover named "Rich Dad Poor Dad".....more

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

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

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

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

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

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

    really praiseworthy. thinking

  5. 25 Arvind Remedies Ltd 316.79M 0.45 0.01 34.60 64.77 39.97

    The above mentioned company suspended the trading.

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

  7. 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


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

  10. 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?


  12. 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.

  13. 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

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

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

  16. Nice site

  17. I too made some research on the above four parameters and found that about 70% of these stocks match with similar search in the,, and 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.

  18. 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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