The Compounded Annual Growth Rate, popularly known as CAGR, is a metric that depicts a growth rate of an investment over a specified period of time longer than a year.
Listed below are 3 stocks under the ‘Mid cap’ category which have a CAGR tied to 3-year net profit growth of more than 25 percent:
KPIT Technologies Limited
KPIT Technologies Limited is a company specializing in Product Engineering solutions as well as providing IT Consulting. The company serves the Energy, Automotive, etc and companies involved in many other sectors.
The company’s shares closed today at Rs 1,089.80, slipping around 0.50 percent as compared to the previous closing levels of Rs 1,094.75. In the last six months, the scrip has gained over 55 percent ranging from Rs 696.75 at the start of January to the current price levels. It has a market capitalization of Rs 29,900 crores.
The company’s consolidated net profit numbers have showcased an increase from Rs 148 crores during FY19-20 to Rs 387 crores in FY22-23. On a compounded basis, the net profits grew at a rate of 37.77 percent.
Mazagon Dock Shipbuilders Limited
Mazagon Dock Shipbuilders Limited is engaged in the business of building and repairing ships, off-shore drilling rigs, and also include submarines as their offerings. It serves customers in India.
The company’s shares closed today at Rs 1,246.40, gaining around 0.50 percent as compared to the previous closing levels of Rs 1,240.10. In the last one month, the scrip has gained over 50 percent ranging from Rs 815.35 at the start of June to the current levels. It has a market capitalization of Rs 25,140 crores.
The company’s consolidated net profit numbers have showcased an increase from Rs 408 crores during FY19-20 to Rs 1,073 crores in FY22-23. On a compounded basis, the net profits grew at a rate of 38.03 percent.
Jindal Stainless Limited
Jindal Stainless Limited is a company based in India that offers products such as steel slabs, plates, precision strips, etc.
The company’s shares closed today at Rs 330.40, slipping around 0.80 percent as compared to the previous closing levels of Rs 332.85. In the last one month, the scrip has gained over 13 percent ranging from Rs 292.50 at the start of June to the current levels. It has a market capitalization of Rs 27,200 crores
The company’s consolidated net profit numbers have showcased an increase from Rs 73 crores during FY19-20 to Rs 2,084 crores in FY22-23. On a compounded basis, the net profits grew at an exponential rate of 205.63 percent.
Written by Amit Madnani
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