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 three smart metre stocks with a net profit CAGR of up to 64 percent from FY21 to FY24:
Techno Electric & Engineering Company Limited
With a market cap of Rs. 19,832.6 crores, the stock moved down by nearly 0.6 percent to Rs. 1,760 on BSE, during the morning trading session of Friday.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 36.8 percent from Rs. 274 crores in Q1 FY24 to Rs. 375 crores in Q1 FY25. Similarly, the net profit grew by 292 percent from Rs. 25 crores to Rs. 98 crores, over the same period.
Further, the net profit of Techno Electric & Engineering Company increased by a CAGR of 14 percent to Rs. 268 crores in FY24, as against Rs. 182 crores in FY21.
The stock has delivered multibagger returns of nearly 226 percent in one year, as well as around 110 percent returns year-to-date.
Techno Electric & Engineering Company Limited, India’s leading power infrastructure company, provides engineering, procurement and construction (EPC) services to the three segments of power sector including generation, transmission and distribution.
The company is also engaged in the generation of wind power through Wind Turbine Generators in Tamil Nadu & Karnataka.
It is significantly involved in the smart metering sector, particularly through the acquisition of large-scale projects and the development of advanced metering infrastructure (AMI).
Earlier in December 2023, Techno Electric secured contracts worth Rs. 1,750 crore related to smart metering and transmission projects. This included the implementation of AMI for nearly 7.27 lakh smart meters in Kashmir.
Tata Power Company Limited
With a market cap of Rs. 1.44 lakh crores, the stock moved up by nearly 0.8 percent to Rs. 453.45 on BSE, during the morning trading session of Friday.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 13.7 percent from Rs. 15,213 crores in Q1 FY24 to Rs. 17,294 crores in Q1 FY25. Similarly, the net profit grew by 4.2 percent from Rs. 1,141 crores to Rs. 1,189 crores, over the same period.
Further, the net profit of Tata Power Company increased by a CAGR of nearly 44 percent to Rs. 4,280 crores in FY24, as against Rs. 1,439 crores in FY21.
The stock has delivered positive returns of nearly 78.6 percent in one year, as well as around 37 percent returns year-to-date.
Tata Power Company Limited is one of India’s largest integrated power companies with a presence across the power value chain viz. generation of renewable and conventional power including hydro and thermal energy; transmission, distribution and trading.
Tata Power is significantly involved in the deployment and implementation of smart meters, which are advanced digital devices that enhance electricity consumption monitoring and management.
HPL Electric & Power Limited
With a market cap of Rs. 3,368.7 crores, the stock moved down by 2.7 percent to Rs. 521 on BSE, during the morning trading session of Friday.
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 22.4 percent from Rs. 321 crores in Q1 FY24 to Rs. 393 crores in Q1 FY25. Similarly, the net profit grew by 142.8 percent from Rs. 7 crores to Rs. 17 crores, over the same period.
Further, the net profit of HPL Electric increased by a CAGR of nearly 64 percent to Rs. 44 crores in FY24, as against Rs. 10 crores in FY21.
The stock has delivered multibagger returns of nearly 147.3 percent in one year, and around 91.7 percent of positive returns year-to-date.
HPL Electric & Power Limited is one of the leading manufacturers of electrical and power distribution equipments.
The company’s products range from Industrial and domestic circuit protection switchgears, cables, Energy Saving Meters, LED lamps and luminaries, and modular switches covering the entire range of household, commercial and industrial electrical needs.
Recently on 12th September, HPL Electric received word orders worth 143.77 crores for the supply of smart meters & conventional meters.
Written by Shivani Singh
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