A company with a 3-year CAGR profit and sales greater than 50 percent indicates strong growth and high profitability. It suggests the company is expanding rapidly while maintaining excellent efficiency in converting revenue into profit. This combination reflects a competitive advantage and a potentially attractive investment opportunity.
Investing in such high-growth stocks offers significant potential for wealth creation, as they reflect their successful scaling of operations and improving profitability. This list can serve as a valuable reference for investors seeking dynamic opportunities in the market.
The stocks to watch out for are listed below
Waaree Renewable Technologies Ltd
Waaree Renewable Technologies Ltd (WRTL) is a subsidiary of the Waaree Group that specializes in solar Engineering, Procurement, and Construction (EPC) services and operates as a solar developer. The company was formed to capitalize on the renewable energy market and provide both on-site (rooftop and ground-mounted) and off-site solar projects for commercial and industrial clients.
Over the last three years, the company has delivered impressive growth with a 115% sales CAGR and a 197% profit CAGR. It has a Return on Capital Employed (ROCE) of 82.3%, Return on Equity (ROE) of 65.6%, and a low debt-to-equity ratio of 0.12, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
Bondada Engineering Ltd
Bondada Engineering Ltd. is a Hyderabad-based company that provides Engineering, Procurement, and Construction (EPC) and Operations and Maintenance (O&M) services for the telecom and solar energy sectors. The company also manufactures telecom towers and other products like LED lights.
Over the last three years, the company has delivered impressive growth with a 68% sales CAGR and a 122% profit CAGR. It has a Return on Capital Employed (ROCE) of 39.5%, Return on Equity (ROE) of 36.2%, and a low debt-to-equity ratio of 0.41, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
Zen Technologies Ltd
Zen Technologies Ltd is an Indian company that designs, develops, and manufactures advanced training simulators and counter-drone solutions for defense and security forces. The company provides a range of products, including live fire, virtual, and constructive training systems, and also develops robotics and autonomous systems through its subsidiaries.
Over the last three years, the company has delivered impressive growth with a 141% sales CAGR and a 411% profit CAGR. It has a Return on Capital Employed (ROCE) of 37.2%, Return on Equity (ROE) of 26.1%, and a low debt-to-equity ratio of 0.01, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
Shilchar Technologies Ltd
Shilchar Technologies Ltd. is a prominent Indian manufacturer of transformers for the electronics, telecom, and power/distribution sectors. Founded in 1990 to make R-core transformers, the company has since expanded its product line and capabilities, now producing transformers up to 50 MVA, 132 KV Class, and exporting to over 25 countries.
Over the last three years, the company has delivered impressive growth with a 51% sales CAGR and a 119% profit CAGR. It has a Return on Capital Employed (ROCE) of 71.3%, Return on Equity (ROE) of 52.9%, and a low debt-to-equity ratio of 0, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
Written by Sridhar J
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