- Date : 10/08/2023
- Read: 3 mins
Here are some of the most consistently growing companies in India, which can be of great interest to investors
Many stocks surge meteorically in brief runs and then stagnate for longer spells. Then there are others that grow fast but are highly volatile too. If you want long-term growth on your stock investment, your stocks must maintain a consistent rise. These growth companies form the basis of value investing.
We take a look at a few consistently growing companies that have maintained a healthy business growth rate, namely Caplin Points, Persistent Systems, AU Small Finance Bank, Saksoft and Mastek.
1. Caplin Points Lab
Caplin Points Lab deals in active pharmaceutical ingredients and finished formulations. It specialises in exporting low-cost pharma products to Central American countries like Guatemala and Honduras. Its three-year CAGR growth in revenue has been 19%, net profit has been 20.5% and operating profit has been 19.3%. Its dividend yield is 0.19 and its market capitalisation is Rs 8,078 crores.
2. Persistent Systems
Persistent Systems is an IT company with services in digital transformation, cloud computing, and data analytics. The company has maintained a 3-year CAGR of 31.6% in revenue, 39.4% in net profit and 45.6% in operating profit. Its dividend yield is 1.03 and the market capitalisation is Rs 37,370 crores.
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3. Mastek Limited
Mastek is an IT company that provides application engineering, AI, cloud enhancement and other related enterprise technology services. Nearly half of its revenue can be attributed to Evosys, a company it acquired in 2021. In the 3-year CAGR yardstick, its revenue has grown 32.7%, net profit by 39.1% and operating profit by 43.2%. It has a dividend yield of 0.92 and its market capitalisation is Rs 6,289 crores.
4. Saksoft Limited
Saksoft provides digital transformation services to clients in Europe, the US and APAC region. Its stock price has more than tripled in one year. Its three-year CAGR in revenue is 23%, net profit is 28.7% and operating profit is 21%. Its dividend yield is 0.22 and its market cap is Rs 3,353 crores.
5. AU Small Finance Bank
It is a private-sector bank launched in 2017. It has a three-year revenue CAGR of 22.8%, net profit of 28.4% and operating profit of 19%. Its dividend yield is 0.14 and its market capitalisation is Rs 47,000 crores.
With consistent growth, companies become financially sound and build a proven track record. With strong and skilful management and governance, these companies can deliver amazing returns for their long-term investors. As an investor, you must always identify and actively monitor these types of companies.
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
