CAGR (Compound Annual Growth Rate) gauges the typical annual growth of your investments over a specified time frame. It displays the average annual rate of return on your investments. Because it accurately depicts the growth (or decline) of an investment over time, CAGR is a useful tool for investors.
Profits are assumed to be reinvested at the conclusion of each year of the time horizon when calculating CAGR. CAGR is not a precise return, but rather a representative figure. An investment typically cannot increase at the same rate year after year.
Multibagger stocks are those that have returned 100% or more in a specific time period. Meaning, if you invested Rs. 1 lakh into a multibagger it would return 2 lakh or more within that specified time period.
Here are 3 Midcap stocks that are Multibagger in 5 years and also have high Net Profit Growth CAGR:
Jindal Stainless Ltd:
Shares of Jindal Stainless closed at Rs.476.00, up 0.4% from Rs. 474.15 at closing on Thursday. The company has a market cap of Rs. 39,195 crore and 11.7% away from its 52 week high. The stock’s volumes on Friday were over 0.7x the weekly average volumes.
The largest steel manufacturer in India and one of the top 10 producers of stainless steel worldwide, Jindal Stainless Ltd. was initially established in 1970 as a unit that made buckets. The company has two important manufacturing facilities with a combined production capacity of 2.1 MTPA and 0.8 MTPA in Odisha and Hisar, respectively.
The company has returned 759.55% in the last 5 years and 280.96% in the last one year period. The company also has a net profit margin 5 year CAGR of 87.2%.
Narayana Hrudayalaya Ltd:
Shares of Narayana are trading at Rs. 1086.85, up 0.9% from Rs. 1077.35 at closing on Thursday. The company has a market cap of Rs. 22,211 crore and % away from its 52 week high. The stock’s volumes on Friday were 1.1x the weekly average volumes.
Affordable health care services are provided by Narayana at multiple locations that make up its network of multispecialty and superspecialty hospitals.
The company has returned 367.34% in the last 5 years and 50.79% in the last one year period. The company also has a net profit margin 5 year CAGR of 61.02%.
APAR Industries Ltd:
Shares of APAR Industries are trading at Rs. 5474.55, down 0.3% from Rs. 5490.95 at closing on Thursday. The company has a market cap of Rs. 20,950 crore and 9% away from its 52 week high. The stock’s volumes on Friday were around 0.25x the weekly average volumes.
APAR was founded in 1958, and it is now a market leader in India with a presence throughout the world. Making a contribution to India’s electrification process, it began by producing power transmission cables before expanding into three main business sectors: conductors, transformer and specialty oils (TSO), and power/telecom cables.
The company has returned 916.5% in the last 5 years and 368.16% in the last one year period. The company also has a net profit margin 5 year CAGR of 34.53%.
Written by Sandeep R
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