A company with a 5-year CAGR greater than 50 percent and a net profit margin of 50 percent indicates strong growth and high profitability. This kind of performance points to strong demand for its products or services, efficient management, and a business model that scales well. Such companies are often leaders in their space, quickly gaining market share and leaving competitors behind.
These are the kinds of companies investors look for, fundamentally strong, high-growth businesses that have proven their ability to perform over time. In this list, we’ve picked out a few such stocks that stand out for their strong fundamentals and impressive growth, making them worth checking out if you’re looking for exciting investment opportunities.
The stocks to watch out for are listed below
Waaree Renewable Technologies Ltd
Waaree Renewable Technologies Limited (WRTL) is an India-based company focused on the renewable energy sector, primarily the solar EPC (Engineering, Procurement, and Construction) business. It is a subsidiary of Waaree Group, a leading renewable energy company in India.
With a market capitalization of Rs. 10,988.11 crores, the company has delivered impressive growth over the last five years, with a 281% sales CAGR and a 274% profit CAGR. It has also reported a strong Return on Equity (ROE) of 65% and Return on Capital Employed (ROCE) of 84.9%, along with a debt-to-equity ratio of 0.06, highlighting its solid overall financial performance.
KPI Green Energy Ltd
KPI Green Energy Limited, part of the KP Group, is a prominent Gujarat-based company incorporated in 2008, specializing in renewable power generation. Operating under the brand “Solarism,” it develops, builds, owns, and operates solar and hybrid (solar and wind) power plants.
With a market capitalization of Rs. 10,224.24 crores, the company has delivered impressive growth over the last five years, with a 97% sales CAGR and a 118% profit CAGR. It has also reported a strong Return on Equity (ROE) of 18.7% and Return on Capital Employed (ROCE) of 17.5%, along with a debt-to-equity ratio of 0.57, highlighting its solid overall financial performance.
Shilchar Technologies Ltd
Shilchar Technologies Limited, established in 1986, is a prominent Indian manufacturer of Electronics & Telecom and Power & Distribution transformers. They specialize in manufacturing a wide range of transformers, including R-core, EI type, ferrite, toroidal, and control transformers, among others.
With a market capitalization of Rs. 5,603.92 crores, the company has delivered impressive growth over the last five years, with a 54% sales CAGR and a 151% profit CAGR. It has also reported a strong Return on Equity (ROE) of 52.9% and Return on Capital Employed (ROCE) of 71.3%, along with a debt-to-equity ratio of 0, highlighting its solid overall financial performance.
Enviro Infra Engineers Ltd
Enviro Infra Engineers Limited (EIEL), established in 2009, specializes in designing, constructing, operating, and maintaining water and wastewater treatment plants and water supply projects across India. They primarily work on government tenders, focusing on Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) based projects.
With a market capitalization of Rs. 4,649.79 crores, the company has delivered impressive growth over the last five years, with a 58% sales CAGR and a 102% profit CAGR. It has also reported a strong Return on Equity (ROE) of 27.4% and Return on Capital Employed (ROCE) of 31.7%, along with a debt-to-equity ratio of 0.24, highlighting its solid overall financial performance.
Insolation Energy Ltd
Insolation Energy Limited (INA Solar) is a leading Indian manufacturer of high-efficiency solar PV modules, solar power conditioning units, solar batteries, and solar charge controllers. It serves residential, commercial, industrial, and solar farm segments across India.
With a market capitalization of Rs. 5,131.79 crores, the company has delivered impressive growth over the last five years, with a 70% sales CAGR and a 109% profit CAGR. It has also reported a strong Return on Equity (ROE) of 49.9% and Return on Capital Employed (ROCE) of 56.6%, along with a debt-to-equity ratio of 0.06, highlighting its solid overall financial performance.
Advait Energy Transitions Limited
Advait Energy Transitions Limited (AETL), formerly known as Advait Infratech Limited, is an Ahmedabad-based company founded in 2009. They specialize in providing products and solutions for power transmission, substation, and telecommunication infrastructure across various verticals.
With a market capitalization of Rs. 2,208.44 crores, the company has delivered impressive growth over the last five years, with a 55% sales CAGR and a 131% profit CAGR. It has also reported a strong Return on Equity (ROE) of 22.4% and Return on Capital Employed (ROCE) of 27.6%, along with a debt-to-equity ratio of 0.26, highlighting its solid overall financial performance.
Written by Sridhar J
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