The compound annual growth rate (CAGR) is the annualized average rate of growth in revenues of a company between two given years with an assumption that the growth takes place at an exponentially compounded rate.
Listed below are three small-cap stocks that exhibited a compounded annual growth rate in revenues of up to 120 percent during a period of the last three financial years:
Zen Technologies Limited
With a market capitalization of Rs 7,828.30 crores, the stocks of Zen Technologies Limited, developing and manufacturing combat training solutions and counter-drone solutions for defense and security forces, started their trading session on Friday at Rs 921.05 and currently trades at Rs 931.45, gaining approximately 4.80 percent compared to the previous close of Rs 889.25 apiece.
Keeping a purview of the last year, the company’s stock has successfully delivered multibagger returns of approximately 200 percent to its shareholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 3 lakhs.
Having a look at the financials of the company, the revenues of the company, over the past three years, have moved up from Rs 55 crores during FY20-21 to Rs 440 crores during FY23-24 which showcases a compounded annual growth rate of 100 percent.
Network People Services Technologies Limited
With a market capitalization of Rs 2,688.84 crores, the stocks of Network People Services Technologies Limited, providing software and digital payment solutions to the BFSI Industry, started their trading session on Friday at Rs 1,455 and currently trades at Rs 1,387, slipping approximately 1.50 percent compared to the previous close of Rs 1,407.85 apiece.
Keeping a purview of the last year, the company’s stock has successfully delivered multibagger returns of approximately 500 percent to its shareholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 6 lakhs.
Having a look at the financials of the company, the revenues of the company, over the past three years, have moved up from Rs 15 crores during FY20-21 to Rs 128 crores during FY23-24 which showcases a compounded annual growth rate of 104 percent.
KPI Green Energy Limited
With a market capitalization of Rs 10,760.45 crores, the stocks of KPI Green Energy Limited, developing, building, managing, and maintaining renewable power facilities, started their trading session on Friday at Rs 1,851.05 and currently trades at Rs 1,790.90, slipping approximately 4 percent compared to the previous close of Rs 1,861.05 apiece.
Keeping a purview of the last year, the company’s stock has successfully delivered multibagger returns of approximately 475 percent to its shareholders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 5.75 lakhs.
Having a look at the financials of the company, the revenues of the company, over the past three years, have moved up from Rs 102 crores during FY20-21 to Rs 1,024 crores during FY23-24 which showcases a compounded annual growth rate of 116 percent.
Written by Amit Madnani
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