Large cap auto stocks with high CAGR of up to 40% to keep an eye on

Increase in compound annual growth rate (CAGR) of revenue in any business makes it valuable. Higher the revenue, the more valuable your business will be. Revenue growth of a company may increase profits and offer new opportunities to expand. In recent times, auto stocks have seen a growth in demand regarding commercial vehicles, two- wheelers and electric vehicles, especially. 

Here are few auto stocks which have a CAGR of up to 40% in its revenue in the last year:

Eicher Motors

Share price of Eicher Motors opened at Rs. 3432 on Monday. In the last one month, the stock price has grown by 3% and 13% in the last six months.

Eicher Motors Limited is a multinational automotive company headquartered in Delhi, India. The company manufactures commercial vehicles and motorcycles. It is the listed parent company of Royal Enfield which manufactures middleweight motorcycles.

The company has a market capitalization of Rs. 92,636 crore. Comparing its financials on a QoQ basis, a revenue of Rs. 3804.32 crore in Q4FY23 increased 4.7% to Rs. 3986.37 crore in Q1FY24. Its net profit of Rs. 905.58 crore in Q4FY23 increased 1.4% to 918.34 crore in Q1FY24. It has a low debt to equity ratio of 0.01 and a good average ROE for the last three years of 15.96. The company witnessed a CAGR of 40.24% in its revenue in the last year.

TVS Motor Company

Share price of TVS Motor Company opened at Rs. 1507. The stock gained 9.52% in the last one month and 41.75% in the last six months.

TVS Motor Company is an Indian multinational company which is headquartered in Chennai. It is largely involved in manufacturing of two wheelers which includes scooters, mopeds, commuter motorcycles, race bikes and a few more. 

The company has a market capitalization of Rs. 69,574 crore. As per its recent financials, it made a revenue of Rs. 8031.4 crore in Q4FY23 and increased 12.7% to Rs. 9055.51 crore in Q1FY24. Its net profit of Rs. 336.1 crore in Q4FY23 increased 29% to 434.3 crore in Q1FY24. It has a good average ROE for the last three years of 20.43. The company witnessed a CAGR of 31.28% in its revenue in the last year.

Hero MotoCorp

Share price of Hero MotorCorp opened at Rs. 3066 per share. The stock price has grown 0.25% in the last one month and 26.01% in the last six months.

Hero MotorCorp is one of the oldest and largest manufacturers when it comes to motorcycles and scooters. It is an Indian multinational company headquartered in New Delhi. The company manufactures wheelers, its parts and also provides related ancillary services.

The company has a market capitalization of Rs. 59,937 crore. Comparing its recent financial statements on a QoQ basis, it recorded a revenue of Rs. 8434.28 crore in Q4FY23 and increased 4.9% to Rs. 8851.01 crore in Q1FY24. Its net profit of Rs. 805.12 crore in Q4FY23 decreased 11.8% to 710.1 crore in Q1FY24. It has a low debt to equity ratio of 0.02 and a good average ROE for the last three years of 17.30. The company witnessed a CAGR of 15.59%  in its revenue in the last year.

Written by Bhumika Khandelwal

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