The Company’s strong financials depend on long-term goals, strategies, and future plans, all of which have a direct impact on sales and profit. Net Profit 5 Year Compound Annual Growth Rate, or CAGR, is the compounded growth rate of a company’s net profits over a five-year period. It helps in assessing if businesses have consistently increased their earnings over time.
Here are three Auto Ancillaries stocks with a five-year net profit CAGR of up to 131%.
Craftsman Automation Ltd
Craftsman Automation is a global leader in precision manufacturing, and produces a wide range of components and sub-assemblies for the automotive, industrial, and engineering industries.
On Friday, Craftsman Automation Ltd shares were trading at Rs 4,593.95, up 0.26 percent from the previous close price, with a market value of Rs 9,704 crore.
Company’s revenue has increased from Rs 1,471 crore in fiscal 18-19 to Rs 2,980 crore in fiscal 22-23 during the past five years. During the same period, net profit increased from Rs 32 crore to Rs 238 crore, accounting for 49 percent of the 5-year CAGR.
The stock has increased 208 percent in the previous five years, from Rs 1,492 to the present levels, and 37 percent in the last six months.
RACL Geartech Ltd
RACL Geartech Ltd is a market leader in automotive components.The company is diversified into industrial gears for electrical switch gears and circuit breakers, as well as winches and cranes.
RACL Geartech Ltd shares were trading at Rs 1,302.70 on Friday, up 0.47 percent from the previous close price, with a market capitalization of Rs 1,404 crore
RACL Geartech Ltd revenue has increased from Rs 136 crore in fiscal 18-19 to Rs 358 crore in fiscal 22-23 during the past five years. During the same time period, net profit increased from Rs 8 crore to Rs 37 crore, representing 36 percent of the 5-year CAGR.
RACL Geartech Ltd share has increased 1,977 percent in the previous five years, from Rs 62.70 to present levels, and has gained multibagger return of 118 percent in the last year.
Duncan Engineering Ltd
Duncan Engineering Ltd is a pioneer in the field of Industrial Pneumatics and Off-Highway Tyre Valves and accessories in India. The company offers automobile goods to major tire manufacturers such as Apollo Tyres, MRF, CEAT, Goodyear, and other Original Equipment customers.
On Friday, shares of Duncan Engineering Ltd were trading at Rs 551.10, with a market value of Rs 203 crore.
Duncan Engineering revenue has increased from Rs 40 crore in fiscal year 18-19 to Rs 70 crore in fiscal year 22-23 during the past five years. During the same time period, net profit increased from Rs 0.15 crore to Rs 9.90 crore, representing 131 percent increase over the previous five years.
The stock has increased 662 percent in the previous five years, from Rs 72.25 to present levels, and has gained a multibagger return of 137 percent in the last year.
Written By Omkar Chitnis
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