Synopsis:
The Indian equity market can see Indian companies accelerating faster in delivering revenues and profits than the industry averages.
Introduction
Growth stock means when a company’s sales and profits are rising faster than the market or industry peers, and has the strength to bring capital appreciation over time. Usually, growth stock companies don’t pay high dividends to the shareholders; rather, they try to reinvest their profits back into the business. Valuation of the growth stocks is based on future expectations rather than current earnings, which may carry a higher risk for the investors.
There are five growth companies from diverse sectors listed below:
1. Anand Rathi Wealth Ltd
The company is one of the leading non-bank wealth solution firms registered under AMFI. It provides a wide range of services such as wealth solutions, financial product distribution, and estate planning.
In the last five years, the company’s Revenue has grown at a CAGR of 23 percent, followed by Net Profit growth at 37 percent for the same period. The stock’s return since listing has been 962 percent
2. Shakti Pumps Limited
The company specializes in producing a diverse range of pumps and motors. It also provides advanced water pumping solutions for households as well as industries. They are having their presence in both the domestic and international markets.
In the last five years, the company’s revenue has grown at a CAGR of 45 percent, and net profit grew from a loss of -14 crore in FY2020 to a profit of 408 crore in FY2025. The stock’s 5-year return stands at an impressive 2,789 percent.
3. Mazagon Dock Shipbuilders Limited
The company is among India’s prominent defence public sector companies operating under the Ministry of Defence. It is engaged in the construction and repair of ships, submarines and various types of vessels.
In the last five years, the company’s revenue has grown at a CAGR of 18 percent, followed by net profit growth of 38 percent for the same period. The stock’s 5-year return stands at an impressive 3,380 percent.
4. Multi-Commodity Exchange of India Limited
The company is a recognised stock exchange under the Securities Contract Regulation Act of 1956. It provides nationwide online trading, clearing, and settlement of commodity derivatives.
In the last five years, the company’s revenue has grown at a CAGR of 22 percent, followed by net profit growth of 25 percent for the same period. The stock’s 5-year return stands at an impressive 345 percent.
5. Shanti Gears Limited
The company, which is engaged in gear manufacturing, was founded in 1969 by engineer and entrepreneur P. Subramanian as a partnership firm. It specializes in designing, manufacturing, supplying, and servicing gears and gearboxes.
In the last five years, the company’s revenue has grown at a CAGR of 20 percent, followed by net profit growth of 31 percent for the same period. The stock’s 5-year return stands at an impressive 425 percent.
Written by Jhanavi Sivakumar
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