Synopsis: These five fundamentally strong stocks have delivered impressive five-year profit CAGRs up to 300 percent, backed by solid ROE, ROCE, and prudent debt management.
Compound Annual Growth Rate (CAGR) is a key metric that measures the mean annual growth of an investment over a specified period of time, assuming profits are reinvested. It smooths out fluctuations in year-to-year performance, providing a clear picture of consistent long-term growth. Alongside, metrics like ROE and ROCE help gauge a company’s efficiency in generating returns from equity and capital employed.
Over the last five years, several fundamentally strong companies have demonstrated exceptional growth, with profit CAGRs reaching up to 300 percent. These businesses combine solid financials, prudent debt management, and scalable operations, making them attractive options for long-term investors seeking robust returns. Here are the 5 stocks with strong CAGR growth in the last 5 years
Varroc Engineering Ltd
Varroc Engineering Ltd was incorporated in 1988 and is the flagship company of the Aurangabad-based Varroc Group. Varroc is a global tier-1 automotive component group. It is engaged in the business of manufacturing and supplying automobile components to a wide range of OEMs across the globe.
With a market capitalization of Rs. 8,551 crores, the company has delivered impressive growth over the last five years, with a 298 percent profit CAGR. It has also reported a strong Return on Equity (ROE) of 7.37 percent and Return on Capital Employed (ROCE) of 17.1 percent, along with a debt-to-equity ratio of 0.54, highlighting its solid overall financial performance.
Lemon Tree Hotels Ltd
Lemon Tree Hotels Ltd is the largest mid-priced and the third largest overall hotel chain in India. It operates in the upscale segment and in the mid-priced sector, consisting of the upper-midscale, midscale and economy segments. It delivers differentiated yet superior service offerings, with a value-for-money proposition.
With a market capitalization of Rs. 10,109 crores, the company has delivered impressive growth over the last five years, with a 207 percent profit CAGR. It has also reported a strong Return on Equity (ROE) of 18.4 percent and Return on Capital Employed (ROCE) of 13 percent, along with a debt-to-equity ratio of 1.67, highlighting its solid overall financial performance.
Yatharth Hospital & Trauma Care Services Ltd
Yatharth Hospital & Trauma Care Services Limited (Yatharth Hospitals) is one of North India’s leading healthcare providers, known for its commitment to delivering high-quality medical care through a network of state-of-the-art facilities. With several super speciality hospitals across North India – including facilities in Noida and Jhansi-Orchha in Madhya Pradesh.
With a market capitalization of Rs. 6,610 crores, the company has delivered impressive growth over the last five years, with a 152 percent profit CAGR. It has also reported a strong Return on Equity (ROE) of 10.4 percent and Return on Capital Employed (ROCE) of 14 percent, along with a debt-to-equity ratio of 0.02, highlighting its solid overall financial performance.
K.P. Energy Ltd
K.P. Energy is a part of the KP Group of Surat. It is involved in the development of utility-scale wind power generation infrastructure. The major activities encompass siting of wind farms, acquisition of lands and permits, EPCC of wind projects, along with balance of plant (BoP) infrastructure. KPEL also owns and operates WTGs (Wind Turbine Generators) and a solar power plant as an IPP( Independent Power Producers).
With a market capitalization of Rs. 2,044 crores, the company has delivered impressive growth over the last five years, with a 153 percent profit CAGR. It has also reported a strong Return on Equity (ROE) of 45.4 percent and Return on Capital Employed (ROCE) of 41.7 percent, along with a debt-to-equity ratio of 0.79, highlighting its solid overall financial performance.
Shilchar Technologies Ltd
Shilchar Technologies Ltd is a prominent manufacturer of power, distribution, and ferrite transformers, as well as electronic components, with a strong focus on renewable energy and utility sectors. The nearly debt-free company operates state-of-the-art facilities in Gujarat.
With a market capitalization of Rs. 4,374 crores, the company has delivered impressive growth over the last five years, with a 151 percent profit CAGR. It has also reported a strong Return on Equity (ROE) of 52.9 percent and Return on Capital Employed (ROCE) of 71.3 percent, along with a debt-to-equity ratio of 0.79, highlighting its solid overall financial performance.
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