Synopsis:
Certain midcap stocks are showing remarkable growth, with both their revenue and net profit increasing at a compound annual growth rate CAGR of over 40 percent. This indicates that these companies are expanding rapidly in terms of sales and profitability.
Midcap companies are businesses of medium size that usually have significant growth potential. If their revenue and net profit are growing at a rate of over 40% per year, it shows that the company is expanding quickly and becoming increasingly profitable.
The following are the midcap stocks having a Net profit CAGR of more than 40%:
1. Garden Reach Shipbuilders & Engineers Limited
Garden Reach Shipbuilders & Engineers Limited is a top Indian shipbuilding company under the Ministry of Defence. It focuses on making ships for the Indian Navy and Coast Guard, and is the first shipyard in India to export warships and deliver 100 warships to the country’s naval forces.
With a market capitalization of Rs.29,912.96 crore, the shares of Garden Reach Shipbuilders & Engineers Limited closed at Rs.2,611.30, down by 3.85 percent from the previous day’s closing price of Rs.2,715.85
In Q1FY26, the company’s revenue increased to Rs.1,310 crore from Rs.1,010 crore in Q1FY25. Revenue CAGR for 3 years is 42 percent . The net profit grew to Rs.120 crore from Rs.87 crore in the same period. Net profit CAGR for 3 years is 42 percent.
The company has a return on equity of 27.6 percent and a return on capital employed of 36.6 percent. Its price-to-earnings ratio is 54.82, compared to the industry average of 73.22.
2. Lloyds Metals & Energy Limited
Lloyds Metals & Energy Limited is engaged in producing sponge iron, generating power, and carrying out mining operations. The company plans to expand its sponge iron plant capacity to 600,000 tonnes per year by adding new kilns and associated power plants.
It also aims to develop nearby iron ore mines to reduce production costs. The second phase of the sponge iron project, along with a 12 MW captive power plant, is progressing slowly due to changes in plant technology.
With a market capitalization of Rs.65,227.51 crore, the shares of Lloyds Metals & Energy Limited closed at Rs.1,246.35, down by 2.34 percent from the previous day’s closing price of Rs.1,276.20
In Q1FY26, the company’s revenue decreased to Rs.2,380 crore from Rs.2,417 crore in Q1FY25. Revenue CAGR for 3 years is 113 percent. The net profit grew to Rs.635 crore from Rs.557 crore in the same period. Net profit CAGR for 3 years is 114 percent.
The company has a return on equity of 31.5 percent and a return on capital employed of 38.3 percent. Its price-to-earnings ratio is 42.52, compared to the industry average of 22.03.
3. Premier Energies Limited
Premier Energies Limited focuses on making complete solar solutions, including solar cells and panels. It includes producing solar photovoltaic cells, manufacturing solar modules with customized panels for specific needs, handling EPC projects, and generating power independently. The company operates five manufacturing plants located in Hyderabad, Telangana.
With a market capitalization of Rs.46,416.24 crore, the shares of Premier Energies Limited closed at Rs.1,029.70, down by 1.91 percent from the previous day’s closing price of Rs.1,049.75
In Q1FY26, the company’s revenue increased to Rs.1,821 crore from Rs.1,657 crore in Q1FY25. Revenue CAGR for 3 years is 106 percent. The net profit grew to Rs.308 crore from Rs.198 crore in the same period. Net profit CAGR for 3 years is 297 percent.
The company has a return on equity of 53.6 percent and a return on capital employed of 41 percent. Its price-to-earnings ratio is 43.46, compared to the industry average of 40.20.
Written by Jhanavi Sivakumar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
