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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.

Stock Analysis Worksheet

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 June’2017)

Growth Rate

SL Name Market Cap (Rs.Billion) 5 Year EPS Growth 5 Year Sales Growth Dividend Growth Rate
1 Sunteck Realty 29.25 130.68 123.68 44.22
2 Avanti Feeds Ltd 63.8 50.19 47.35 44.22
3 Dewan Housing 136.05 44.79 31.25 16.96
4 Vakrangee Softwares 219.78 48.29 24.21 100
5 Natco Pharma 178.18 46.69 31.57 88.99
6 Ajanta Pharma Ltd 138.09 45.67 24.2 48.12
7 Minda Industries 53.74 42.54 24.34 54.2
8 Edelweiss Financial 161.71 32.99 31.72 22.92
9 Sun Pharma 1268.87 17.73 31.54 32.64
10 Indian Hume Pipe Company Ltd 20.95 44.06 28.32 41.5
11 Sonata Software 16.66 43.44 19.49 33.89
12 Skipper Ltd 20.66 50.63 18.1 117.81
13 Adani 743.78 27.63 25.63 9.14
14 Rajesh Exports 189.07 24.75 56.67 3.23
15 IIFL Holdings 189.25 39.65 21.19 14.47
16 PNB Gilts Ltd 9.08 51.33 24.81 40.57
17 Motherson Sumi Systems 646.04 42.2 23.96 6.27
18 Motilal Oswal 164.17 28.16 29.98 40.1
19 IndusInd Bank 911.97 23.05 21.87 19.68
20 APL Apollo Tubes Ltd 39.71 24.31 26.7 33.89
21 Can Fin Homes 77.2 35.12 36.42 18.76
22 Cholamandalam 161.79 26.7 21.41 16.26
23 Tata Consultancy 4827.07 20.24 19.26 13.67
24 Tech Mahindra 387.36 9.78 39.63 21.64
25 Hatsun Agro Product Ltd 88.87 37.92 21.23 18.88
26 JSW Steel 481.15 21.76 11.99 26.94
27 Granules India 32.1 38.14 17.02 37
28 JM Financial 102.33 29.62 21.97 14.47
29 KRBL Ltd 92.51 41.38 14.06 20.51
30 UPL 439.41 23.04 16.81 20.51

Price Valuation

SL Name Market Cap (Rs.Billion) Revenue (Rs.Billion) P/E PEG (5Y)
1 Sunteck Realty 29.25 16.83 13.72 0.10
2 Avanti Feeds Ltd 63.8 42.02 29.76 0.59
3 Dewan Housing 136.05 78.52 18.31 0.41
4 Vakrangee Softwares 219.78 40 41.42 0.86
5 Natco Pharma 178.18 20.65 36.82 0.79
6 Ajanta Pharma Ltd 138.09 20.02 27.25 0.60
7 Minda Industries 53.74 35.05 29.35 0.69
8 Edelweiss Financial 161.71 65.92 27.81 0.84
9 Sun Pharma 1268.87 315.43 18.29 1.03
10 Indian Hume Pipe Company Ltd 20.95 18 21.21 0.48
11 Sonata Software 16.66 25.21 10.84 0.25
12 Skipper Ltd 20.66 17.03 18.55 0.37
13 Adani 743.78 84.77 18.93 0.69
14 Rajesh Exports 189.07 2421.32 15.17 0.61
15 IIFL Holdings 189.25 49.12 27.65 0.70
16 PNB Gilts Ltd 9.08 5.01 5.43 0.11
17 Motherson Sumi Systems 646.04 432.57 40.62 0.96
18 Motilal Oswal 164.17 17.27 45.75 1.62
19 IndusInd Bank 911.97 184.78 32.26 1.40
20 APL Apollo Tubes Ltd 39.71 45.45 27.07 1.11
21 Can Fin Homes 77.2 13.52 32.81 0.93
22 Cholamandalam 161.79 46.93 22.35 0.84
23 Tata Consultancy 4827.07 1179.66 18.9 0.93
24 Tech Mahindra 387.36 291.41 12.45 1.27
25 Hatsun Agro Product Ltd 88.87 62.35 66.34 1.75
26 JSW Steel 481.15 605.36 13.44 0.62
27 Granules India 32.1 14.35 18.83 0.49
28 JM Financial 102.33 23.59 21.78 0.74
29 KRBL Ltd 92.51 32.65 23.15 0.56
30 UPL 439.41 166.8 24.61 1.07

* 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.

About the Author

Mani
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

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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