A company with a 5-year CAGR greater than 50 percent and a net profit margin of 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 companies successfully scaling their operations and improving profitability. This list can serve as a valuable reference for investors seeking dynamic opportunities in the market.
1. Waaree Renewable Technologies Ltd
Waaree Renewable Technologies Limited is an India-based engineering, procurement and construction (EPC) company, which is focused on the renewable energy sector. The Company is engaged in the solar EPC business, and generation of power through renewable energy sources. It is also a solar developer that finances, constructs, owns, and operates projects.
Over the last five years, the company has delivered impressive growth with a 281% sales CAGR and a 274% profit CAGR. It has a Return on Capital Employed (ROCE) of 84.9%, Return on Equity (ROE) of 65.0%, and a low debt-to-equity ratio of 0.06, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
2. KPI Green Energy Ltd
KPI Green Energy Ltd specializes in the development, ownership, and operation of renewable energy assets, particularly solar and wind power projects. With a diversified portfolio across multiple states, KPI contributes to India’s renewable energy targets. The company focuses on sustainable energy generation and is expanding its capacity to serve the growing clean energy demand.
Over the last five years, the company has delivered impressive growth with a 97% sales CAGR and a 118% profit CAGR. It has a Return on Capital Employed (ROCE) of 17.5%, Return on Equity (ROE) of 18.7%, and a low debt-to-equity ratio of 0.57, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
3. Jupiter Wagons Ltd
Jupiter Wagons Ltd is a leading manufacturer of freight wagons and railway equipment in India, supplying to both public and private sectors. The company has diversified into renewable energy by providing solar solutions and developing solar power projects. Known for its engineering expertise and manufacturing quality, it is expanding its footprint in infrastructure and green energy segments.
Over the last five years, the company has delivered impressive growth with a 98% sales CAGR and a 125% profit CAGR. It has a Return on Capital Employed (ROCE) of 21.5%, Return on Equity (ROE) of 17.0%, and a low debt-to-equity ratio of 0.14, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
4. Insolation Energy Ltd
Insolation Energy Ltd is a specialized solar EPC company providing end-to-end solar power solutions, including design, engineering, installation, and maintenance. The firm primarily serves commercial, industrial, and government clients seeking renewable energy solutions. Insolation focuses on delivering customized solar projects, helping clients reduce their carbon footprint while optimizing energy costs.
Over the last five years, the company has delivered impressive growth with a 70% sales CAGR and a 109% profit CAGR. It has a Return on Capital Employed (ROCE) of 56.6%, Return on Equity (ROE) of 49.9%, and a low debt-to-equity ratio of 0.06, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
5. Lloyds Metals & Energy Ltd
Lloyds Metals & Energy Ltd operates in the steel manufacturing industry, producing high-grade steel products for various industrial applications. Simultaneously, the company has made significant strides in renewable energy by developing and operating solar power projects. Lloyds is focused on sustainable growth by integrating green energy initiatives with its core manufacturing business.
Over the last five years, the company has delivered impressive growth with a 79% sales CAGR and a 115% profit CAGR. It has a Return on Capital Employed (ROCE) of 38.3%, Return on Equity (ROE) of 31.5%, and a low debt-to-equity ratio of 0.12, highlighting good capital efficiency and a healthy financial position with minimal reliance on debt.
Written by Sridhar J
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