Motilal Oswal Financial Services Limited, a prominent name in the Indian financial industry, offers a diverse range of services encompassing wealth management, retail and institutional broking, investment banking, and asset management. With a focus on innovation and client-centricity, Motilal Oswal has established itself as a trusted partner for investors and businesses alike.
Compound Annual Growth Rate (CAGR) is a crucial financial metric used to measure the annual growth rate of an investment over a specified period, considering the effect of compounding. It provides a clear indication of the investment’s performance, enabling investors to assess its sustainability and make informed decisions.
Here are the stocks with PAT CAGR up to 23% for FY25-26;
Computer Age Management Services Ltd
Computer Age Management Services Limited is an India-based technology business specializing in capital markets, banking, financial services, and insurance (BFSI). The company offers financial infrastructure and services to mutual funds (MFs), alternative investment funds (AIFs), insurance companies, and other financial organizations.
With a market capitalization of Rs 14,153.22 crore, the shares were trading at Rs 2,880.00 per share, increasing around 1.66 percent as compared to the previous closing price.
CAMS PAT CAGR stood at 12 percent over FY21-23. Motilal Oswal, a well-known Brokerage estimates CAMS will register a PAT CAGR of 23 percent over FY24-26E. Moreover, ROE is to improve to 45.7% by FY26 vs. 40.8% in FY24.
CAMS has obtained an in-principle license from the RBI to operate as a payment aggregator, enhancing its position in the digital payments landscape. CAMSPay, commanding over 50% market share in mutual funds, is expanding its product offerings, notably through UPI autopay, resulting in accelerated transaction volume growth.
In conclusion, CAMS’ robust growth trajectory is expected to continue with a projected PAT CAGR of 23% over FY24-26E. With an in-principle license from RBI as a payment aggregator and CAMSPay’s dominant market share, the company is poised for sustained expansion in the digital payments sector.
Adani Ports & Special Economic Zone Ltd
Adani Ports & Special Economic Zone is in the business of developing, operating, and maintaining port infrastructure (port services and related infrastructure development), and has established a multi-product Special Economic Zone (SEZ) and related infrastructure next to the Port of Mundra.
With a market capitalization of Rs 2.72 lakh crore, the shares were trading at Rs 1,259.30 per share, increasing around 1.14 percent as compared to the previous closing price.
APSEZ’s PAT CAGR stood at 28 percent over FY21-23. Motilal Oswal, a well-known Brokerage estimates APSEZ will register a PAT CAGR of 18 percent over FY24-26E. Moreover, ROE/ROCE is to improve to 19.8%/13% by FY26 vs. 18.9%/11.4% in FY24.
APSEZ reported a robust cargo volume of 382MMT in the 11 months of FY24. The management recently revised its FY24 cargo volume guidance to 400 MMT from 380 MMT earlier. The brokerage expects APSEZ to surpass the revised guidance
In conclusion, APSEZ has exhibited strong financial performance with notable growth in PAT and cargo volume. With expectations of continued improvement in profitability and cargo handling capabilities, the company appears well-positioned for future growth and value creation.
Kajaria Ceramics Ltd
Kajaria Ceramics Limited manufactures ceramic and vitrified tiles. The company’s areas include tiles, among others. The Tiles section produces and distributes ceramic and vitrified wall and floor tiles. The Others company produces sanitary goods, faucets, and trades plywood and block board.
With a market capitalization of Rs 18,965.27 crore, the shares were trading at Rs 1,190.85 per share, increasing around 0.05 percent as compared to the previous closing price.
KJC’s PAT CAGR stood at 19 percent over FY21-23. Motilal Oswal, a well-known Brokerage estimates KJC will register a PAT CAGR of 20 percent over FY24-26E. Moreover, ROE/ROCE is to improve to 22%/26% by FY26 vs. 18%/21% in FY24. KJC has been generating FCF since FY16.
The company is setting up a 5.1msm capacity in Nepal through a JV with Ramesh Corp, Nepal, that will require an investment of Rs 900 by KJC (total project cost of Rs 1.81b). The project got slightly delayed and is now expected to be operational by Jun’24.
In conclusion, KJC has demonstrated consistent growth in its financial performance, with expectations of further improvement in profitability and returns. The company’s expansion plans, including the venture in Nepal, are poised to contribute to its future growth trajectory.
Written by:- Abhishek Singh
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