A company with a 5-year CAGR greater than 50 percent and a net profit margin of 30 percent indicates strong growth and profitability over time, making it an attractive investment. When such companies trade close to their 200-day moving average (MA), it signals a potential trend reversal or continuation.
The 200-day MA is a widely used technical indicator that smooths out price data over the long term, providing insights into the overall market trend. When the stock price is near this average, it often suggests the price is consolidating or may soon see a breakout, attracting investors to evaluate future movement potential.
The stocks to watch out are listed below
KPI Green Energy Ltd
CMP- 799.25 , 200 day Moving Average – 789.05
,KPI Green Energy Ltd is a renewable energy company with a market capitalization of Rs. 10,353 crore. Specializing in solar energy, the company provides solar power generation and related services. Over the last five years, KPI Green has delivered impressive growth with a 101 percent CAGR in profit and 97 percent CAGR in sales.
Their business model includes solar energy projects, solar rooftop solutions, and a focus on providing sustainable energy alternatives to industrial and commercial clients. KPI’s significant profit growth is fueled by its expansion into renewable energy projects and strong demand for clean energy solutions. The company is well-positioned to capitalize on India’s growing focus on clean energy.
Jupiter Wagons Ltd
CMP-504.65, 200 day Moving Average –491.78
Jupiter Wagons Ltd, with a market capitalization of Rs. 22,284 crore, manufactures and supplies products related to the railway sector, including wagons, coaches, and other railway equipment. The company has demonstrated strong growth, with a 5-year profit CAGR of 80 percent and a sales CAGR of 76 percent.
Jupiter Wagons serves both domestic and international markets, leveraging its engineering expertise to provide high-quality railway products and services. Its diversified product portfolio, including infrastructure and logistics services, has helped it maintain a steady upward trajectory. The company’s success is driven by robust demand in the transportation and logistics sectors, as well as its focus on innovation and technological advancements.
Harsha Engineers International Ltd
CMP- 503.10, 200 day Moving Average – 491.79
Harsha Engineers International Ltd, with a market cap of Rs. 4,522 crore, specializes in manufacturing precision bearings, a crucial component in automotive and industrial machinery. The company’s 5-year profit CAGR stands at 56 percent, while its sales have grown at a 55 percent CAGR.
Harsha Engineers is a leading player in the engineering industry, providing high-quality products that serve diverse sectors, including automobiles, agriculture, and heavy machinery. Their expertise lies in the design and manufacturing of bearings, which are vital to the smooth functioning of various mechanical systems. The company has been successful due to its focus on innovation, customer satisfaction, and global market expansion.
NIBE Ltd
CMP- 1,723.70 , 200 day Moving Average – 1,634.75
NIBE Ltd, with a market capitalization of Rs. 2,267 crore, is involved in the production of products for heating, cooling, and ventilation systems, primarily in the HVAC industry. Over the last five years, NIBE has seen an extraordinary profit CAGR of 361 percent and a sales CAGR of 171 percent, indicating rapid growth in its niche market.
The company focuses on energy-efficient solutions, with a strong emphasis on sustainable technologies that meet global environmental standards. NIBE’s products, ranging from heat pumps to energy-efficient systems, cater to both residential and commercial sectors, capitalizing on the growing demand for eco-friendly, energy-saving solutions.
Written by Sridhar J
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