The ‘Compound Annual Growth Rate’ (CAGR) is generally defined as the rate of return (RoR) that would be required for an investment to grow from its beginning amount to its ending balance, assuming all the profits were reinvested at the end of each period during the whole time span of investment.
Listed below are two Penny stocks with 3-year net profit CAGR of more than 30 percent that one should add to their watchlist:
Kenvi Jewels Limited
With a market capitalization of Rs 106.66 crores, the stocks of Kenvi Jewels Limited started their trading session on Tuesday at Rs 8.22 and currently trading at Rs 8.44, gaining around 1.50 percent as compared to the previous close of Rs 8.32 apiece.
Going through the net profit numbers reported by the company during the past 3 periods, i.e., from March 2020 to March 2023, the profit numbers have risen from Rs 0.23 crores during FY19-20 to Rs 0.54 crores during FY22-23 exhibiting a compounded annual growth rate (CAGR) of approximately 33 percent.
Year-to-date, the company’s stock has given multibagger returns of approximately 106 percent, i.e., if someone had invested Rs 1 lakh during the start of January 2023, it would have converted to Rs 2.06 lakhs.
Founded in 2002, Kenvi Jewels Limited is engaged in the business of manufacturing, retailing, and wholesaling pieces of jewelry in India. Some of the products in its portfolio include wedding jewellery, rings, ear chains, toe rings, bracelets, and many more.
Capital Trade Links Limited
With a market capitalization of Rs 212.82 crores, the stocks of Capital Trade Links Limited started their trading session on Tuesday at Rs 35.10 and currently trading at Rs 34.90, slipping around 2.80 percent as compared to the previous close of Rs 35.91 apiece.
Going through the net profit numbers reported by the company during the past 3 periods, i.e., from March 2020 to March 2023, the profit numbers have risen from Rs 0.94 crores during FY19-20 to Rs 2.52 crores during FY22-23 exhibiting a compounded annual growth rate (CAGR) of approximately 40 percent.
Keeping a purview of a year, the company’s stock has given multibagger returns of approximately 165 percent, i.e., if someone had invested Rs 1 lakh during the start of January 2023, it would have converted to Rs 2.65 lakhs.
Incorporated in 1984, Capital Trade Links Limited is a Non-Banking Financial Company (NBFC) providing loans and other financial services in India. The company serves individuals, entrepreneurs, and other legal entities.
Written by Amit Madnani
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