Which companies are growing faster in India?
As per Equitymaster's Stock Screener, these are the fastest growing companies in India right now...
Please note, the companies are filtered after taking into consideration their 3-year sales CAGR and 3-year profit CAGR.
These stocks usually trade at a premium to other stocks in the market because investors are willing to pay for the higher profits in the years ahead.
How can you filter the fastest growing companies in India?
Fastest growing companies are those which are growing their sales and profits at a faster pace than the market. They are often referred to as growth stocks.
Investors think these are the best stocks to buy.
These stocks differentiate in a big way from value investing stocks, which are filtered by using ratios like the PE ratio and PB ratio.
Which company will grow in future in India?
Companies with rock solid fundamentals which have a long runway of growth ahead of them will undoubtedly grow in the future.
On the other hand, avoid high debt companies and loss-making companies which come with a big red flag.
Why should you focus on the fastest growing companies in India?
Fastest growing companies are the ones that grow at a faster rate than the average business in an industry or market as a whole.
These companies are usually lucrative bets and attractive because businesses that can grow faster than the average business for long periods tend to be rewarded by the market.
The faster they grow, the bigger the returns are for shareholders.
By consistently growing their profits and sales, fastest growing companies can create good value for shareholders over the long haul.
Which will be the fastest growing stocks in the long run?
The companies which will constantly adapt themselves according to the changing market dynamics will stay on top.
No one can say for sure which stock will be the fastest growing stock for the future. However, if you follow the basic stock picking principle, you could end up with high growth stocks that become the x-factor for your portfolio.