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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.

How P/E ratio dictates market price of stocks…

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.

So 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.

What else is important to look for in a fast growing company?

A portion of companies profit (PAT or EPS) is distributed as 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.

Top 25 Fastest Growing Companies in India 2017

(Updated on March’2017)

SL Company name  Market cap  P/E ratio PEG  5y revenue growth rate PAT growth (5Y)  5y EPS growth rate
1 Sunteck Realty Ltd.   22.01B 6.23 0.05 107.93 119.73 119.73
2 PTC India Financial Services Ltd   25.08B 7.85 0.15 61.26 60.23 52.40
3 BF Investment Ltd   6.18B 4.67 0.08 106.86 58.39 58.39
4 Welspun India Limited   84.63B 20.55 0.09 22.95 250.35 241.66
5 Ujjivan Financial Services Ltd   52.83B 18.45 0.24 45.99 72.24 75.41
6 Avanti Feeds Ltd   33.16B 20.79 0.19 57.58 113.69 108.33
7 CMI Ltd   2.06B 2.40 0.04 35.56 120.87 65.40
8 Satin Creditcare Network Ltd   14.70B 15.23 0.24 56.61 92.45 64.72
9 Shilpi Cable Technologies Ltd.   23.99B 12.25 0.32 61.86 60.76 38.21
10 Rajesh Exports Ltd.   165.69B 14.20 0.42 51.72 33.98 33.98
11 KP ENERGY Ltd   1.27B 13.90 0.07 203.87 207.90 207.89
12 8K Miles Software Services Ltd   18.92B 22.91 0.29 75.53 80.05 79.56
13 Kridhan Infra Ltd   3.95B 4.86 0.14 37.06 54.72 35.83
14 MindTree Ltd   79.37B 16.69 0.40 25.46 42.80 42.00
15 Kalyani Investment Co Ltd   7.17B 19.77 0.23 39.79 85.16 85.16
16 Capital Trust Ltd   7.23B 22.02 0.26 52.87 110.43 85.74
17 Bhageria Industries Ltd   5.17B 15.10 0.22 31.08 76.18 67.96
18 Victoria Mills Ltd   298.64M 8.59 0.08 41.05 103.21 103.21
19 Lypsa Gems & Jewellery Ltd   1.34B 6.86 0.09 24.99 74.82 74.82
20 Torrent Pharmaceuticals Ltd   244.56B 24.18 0.54 24.92 45.02 45.02
21 Cholamandalam Investment and Fin Co Ltd   152.32B 21.75 0.58 28.42 46.72 37.42
22 Vedvaag Systems Ltd   974.18M 12.89 0.17 36.54 91.84 76.63
23 DCB Bank Ltd   46.62B 21.74 0.48 25.93 55.45 44.90
24 Dilip Buildcon Ltd   47.32B 20.57 0.54 57.98 38.08 38.08
25 Arvind Remedies Ltd   316.79M 0.45 0.01 34.60 64.77 39.97

* It is advisable to do a more detailed fundamental analysis of above stocks before purchase


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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.

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

  1. 25 Arvind Remedies Ltd 316.79M 0.45 0.01 34.60 64.77 39.97

    The above mentioned company suspended the trading.

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

  3. 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

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

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

  6. 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?

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

  8. 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.

  9. 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

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

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

  12. Nice site

  13. 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.

  14. 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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