In recent time, many companies have struggled to report some good earnings. Restrictions due to Covid had a significant impact on them. But on the other hand, there are several companies whose earnings have actually seen a good growth in covid period too!
Some companies are also seeing accelerated growth in their business! Growth in the financials of these companies has been superb in past 1-2 years. Reacting on this accelerated growth, shares of them have given Multibagger returns in last 1 year.
If these companies continued to perform and kept growing at a faster pace for some more time, it can help their share prices to reach a new height!
So what are the names of these fastest growing companies??
Before we see the names, let me tell you that these stocks have been filtered! Only those stocks have been added here where growth in financials has been from Top to Bottom! Revenues and Profits both are on a upward journey.
Additionally, only those names have been added whose Market Capital is atleast Rs 5,000 crore! For a Low Market Cap company, it can be little easy to rise multifold times. But for a Mid size or Big company, rising more than 100 percent is not always easy unless the firm has achieved some solid growth.
One more thing.
Before you see the list, it is important to know how the data has been presented in the list. Otherwise, you might feel just clueless about what the columns are showing?
So, here are the details of it
In columns, REV means Revenue and PAT means Profit. Quarter 2(2022) is period of July to September of 2021 year. Similarly, Quarter 2(2021) is period of July to September of 2020 year. Compare Quarter 1(2022) with Quarter 1(2021) to see the YoY Growth. FY2021 period is of April 2020 to March 2021. FY2020 period is of April 2019 to March 2020. Compare FY2021 with FY2020 to see the Growth.
So finally, here is the list of Companies or Stocks which are growing at a faster pace in terms of both Business and Share Price.
List of Fast Growing Companies / Stocks in India
| Company Name | Past 1 Year Returns | Quarter2(2022) | Quarter2(2021) | FY2021 FINANCIALS | FY2020 FINANCIALS |
|---|---|---|---|---|---|
| Tanla Platforms | 171% | REV—842 PAT—136 | REV—583 PAT—81 | REV—2,341 PAT—356 | REV—1943 PAT—(-211) |
| CDSL | 179% | REV—146 PAT—86 | REV—89 PAT—49 | REV—344 PAT—200 | REV—225 PAT—106 |
| Dixon Technologies | 101% | REV—2,804 PAT—63 | REV—1,639 PAT—52 | REV—6,448 PAT—160 | REV—4,400 PAT—120 |
| APL Apollo Tubes | 149% | REV—3,084 PAT—131 | REV—2,202 PAT—92 | REV—8,500 PAT—360 | REV—7,723 PAT—238 |
| Persistent Systems | 213% | REV—1,351 PAT—162 | REV—1,008 PAT—102 | REV—4,188 PAT—451 | REV—3,566 PAT—340 |
| Balaji Amines | 242% | REV—526 PAT—80 | REV—282 PAT—46 | REV—1,308 PAT—238 | REV—935 PAT—105 |
| Mastek | 158% | REV—534 PAT—72 | REV—410 PAT—51 | REV—1,722 PAT—209 | REV—1,071 PAT—109 |
| Angel One | 243% | REV—527 PAT—134 | REV—310 PAT—74 | REV—1,289 PAT—297 | REV—748 PAT—82 |
| Borosil Renewables | 152% | REV—161 PAT—34 | REV—114 PAT—14 | REV—502 PAT—90 | REV—271 PAT—0 |
| Prince Pipes | 152% | REV—761 PAT—76 | REV—459 PAT—47 | REV—2,072 PAT—222 | REV—1,636 PAT—113 |
| Allcargo Logistics | 179% | REV—4,978 PAT—228 | REV—2,337 PAT—57 | REV—10,498 PAT—173 | REV—7,346 PAT—223 |
So, these were the Top stocks where High Growth in financials in covid period too has supported their prices to reach a new height.
There are some companies where even after achieving good growth in the financials, share prices are not able to show any good momentum. But in these stocks, investors have positively reacted on the growth. Growth in Business has caused increased demand of these shares among the investors which is aiding the growth of Share Price too.
Some more names of Fast Growing Companies
In above list, some stocks where business performance and growth rate have been great were not added because they were not meeting some criterias used to make the list. Here are the names of these companies
- Affle India
- Gujarat Gas
- Shyam Metalics
- Astral
- Gland Pharma
- Sheela Foam
- Motilal Oswal
This article was written to help you discover those companies where share price growth is coming along with business growth. From above list, most of the stocks were not added to the table because share has not given 100% or more returns in last 1 year.
However, because their business are growing well, you can keep these stocks on your radar. If growth continued in the financials of them, we might see some amazing growth returning back in the share prices soon.
Now, let’s see some questions that are likely to Hit your mind after discovering these names of fast growing stocks.
What are the chances of these Fast Growing Stocks to perform in Future?
If mentioned companies continued to show encouraging growth in financial numbers in future too, then prices of these stocks are also expected to see a good rise in future. Growth Potential in these stocks has still not peaked yet. That means, efforts of management can still push the Financial numbers or Business of these Growth companies to new heights.
Is there any High Risk in these Fast Growing Companies?
Generally, when a stock is in a phase of High Growth, their PE or Price to Earning Ratio might see some kind of re-rating. In other words, it might see some expansion in figure.
Say ABC stock trades around 20 PE during its slow growth phase. Then, it doesn’t necessary that stock will still be trading with 20 PE when the phase will be of High Growth. PE could reach to 30, 40 or more higher figure on the back of high demand of share among investors.
When ABC company would again move to slow growth phase, the PE (Valuations) might also see some decline and move to 20 levels again. When this thing happens, share price could see some significant decline or correction in the price compared to what is happening in the financials.
Entry at Right Time is Necessary in Growth Stocks!
In Growth stocks, it is necessary that we take entry in them only when few years of growth is still left. If growth is about to exhaust, we might end up buying a stock at very high prove.
In growth stocks, it is possible that investors may be discounting growth of next 1-2 years. It would mean that share price is already trading according to what kind of growth it is likely to see in next 2 years. In some cases, investors might be discounting even next 5 year growth numbers.
So, before anybody invest in such stocks, it will be important to see the valuations and the period upto which high growth is likely to sustain.
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That is the end of this post. Hope it helps you somewhere.
Good Luck : )
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