The compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a period longer than one year, considering the effect of compounding. It’s one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios, and anything that can rise or fall in value over time.
Here are a few cable stocks with a net profit of up to 30 percent CAGR from FY21 to FY24:
Universal Cable Limited
With a market cap of Rs. 2,422 crores, the stock moved up by 4.7 percent to Rs. 703.9 on BSE, during the trading session of Friday.
The company experienced marginal growth in its revenue from operations, showing a year-on-year rise of around 2 percent from Rs. 479.4 crores in Q1 FY24 to Rs. 488.7 crores in Q1 FY25. However, the net profit fell by 76.6 percent YoY from Rs. 24 crores to Rs. 5.6 crores, during the same period.
Further, the net profit of Universal Cable increased by a CAGR of 17.3 percent to Rs. 108 crores in FY24, as against Rs. 67 crores in FY21.
The stock has delivered positive returns of nearly 49.5 percent in one year, as well as around 33.7 percent returns year-to-date.
Universal Cables Limited is engaged in the business of manufacturing and sale of electrical and other cables, capacitors & capacitor banks, wires and conductors, etc. and turnkey projects predominantly relating to electrical cables/capacitors & capacitor banks, etc.
KEI Industries Limited
With a market cap of Rs. 38,683.4 crores, the stock moved up by 0.88 percent to Rs. 4,429.95 on BSE, during the trading session of Friday.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 15.5 percent from Rs. 1,783 crores in Q1 FY24 to Rs. 2,060 crores in Q1 FY25. Similarly, the net profit grew by 24 percent YoY from Rs. 121 crores to Rs. 150 crores, during the same period.
Further, the net profit of KEI Industries increased by a CAGR of 29.1 percent to Rs. 581 crores in FY24, as against Rs. 270 crores in FY21.
The stock has delivered positive returns of nearly 71.6 percent in one year, as well as around 41 percent returns year-to-date.
KEI Industries Limited operates in three major segments: Cables & Wires, EPC Projects and Stainless Steel Wire.
In the cables segment, KEI Industries manufactures and markets a wide range of power cables up to 400kV, including Low Tension, High Tension, Extra High Voltage, specialty cables and more, serving various sectors, including power, oil refineries, railways, automobiles, and textiles.
R R Kabel Limited
With a market cap of Rs. 19,448 crores, the shares of the leading consumer electricals player & strong presence in Fast Moving Electrical Goods (FMEG) moved up by around 4.7 percent to Rs. 1,752 on BSE, during the trading session of Friday.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 13.2 percent from Rs. 1,597 crores in Q1 FY24 to Rs. 1,808 crores in Q1 FY25. However, the net profit declined by 13.5 percent YoY from Rs. 74 crores to Rs. 64 crores, during the same period.
Further, the net profit of R R Kabel increased by a CAGR of 30.2 percent to Rs. 298 crores in FY24, as against Rs. 135 crores in FY21.
The stock has delivered positive returns of nearly 40 percent in one year, as well as around 6 percent returns year-to-date.
Founded in 1999, R R Kabel Limited is mainly engaged in the business of manufacturing PVC insulated wires and cables, power cables and special cables.
The company is India’s largest exporter of wires and cables, offering a wide range of electrical products including wires & cables, fans, lighting, electrical accessories, and appliances for residential, commercial, industrial, and infrastructural purposes.
Written by Shivani Singh
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