If there is one kind of investing that has found favour over the rest, it's growth investing.
Growth stocks are companies that grow at a faster rate than the average business in an industry or market as a whole.
Growth stocks are attractive to investors 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.
It important to keep in mind that while there are chances that growth stocks could generate multibagger returns, if these companies disappoint even slightly, they could get punished heavily by the market due to high valuations.
Further, when you are picking growth stocks, relying on past growth numbers will not be enough. You have to be reasonably confident that the growth is sustainable and virtuous in nature i.e. the incremental growth comes with high return on invested capital.
In other words, every time one reinvests in the business, the return on incremental capital should remain high.
Check out Equitymaster’s powerful stock screener to find the best growth stocks in India.
It includes stocks like Bajaj Finance, Adani Green Energy, Deepak Nitrite, etc.
May 30, 2023
These five midcaps have registered the fastest growth in revenue, profit, and market share.
May 24, 2023
Investors must keep an eye on these stocks to potentially amass a fortune in the long term.
May 19, 2023
Leading API manufacturer Divi's Labs has seen a sharp fall in its share price. What next?
May 15, 2023
These smallcaps are lined up for hefty final dividends. Do you own them?
Apr 26, 2023
This pharma MNC has just launched its global blockbuster vaccine in India. Will it be the turning point for this sleeping giant in 2023?
Apr 17, 2023
Will this ex-multibagger manage to turn its fortunes around in FY24?
Mar 28, 2023
These stocks have the potential to reward shareholders on the back of strong earnings growth.
Mar 18, 2023
Harsha Upadhyaya is a committed Growth at Reasonable Price (GARP) stock picker. He believes this is probably the best approach to picking stocks. If you go by his track record, he is right too.
Mar 8, 2023
These five smallcap stocks can grow dramatically and potentially offer decent gains in 2023.
Feb 11, 2023
Will these high growth stocks make the most of India's electric vehicle revolution?
May 27, 2023
Looking for cash in in these volatile times? Here are five stocks paying big dividends in July 2023.
May 22, 2023
Investors must keep an eye on these stocks to potentially amass a fortune in the long term.
May 17, 2023
These five chemical companies are investing heavily in expanding their capacity and upgrading their technology. But are they worth a look at the current valuations?
May 6, 2023
Looking for cash in in these volatile times? These four companies are offering stable and hefty dividends in these unstable markets.
Apr 22, 2023
Watch out for these two companies declaring big dividends in May 2023.
Apr 14, 2023
Use this method to value stocks at their fair price and avoid overpaying for a stock ever again!
Mar 24, 2023
Investors no longer need to choose between high dividend and high growth stocks. There are a few companies that offer both!
Mar 12, 2023
This is the fair price for a wonderful company.
Feb 27, 2023
As savvy investors know that growth should not come at the cost of profit. Here are the top 10 fast growing companies with high ROCE.
Feb 7, 2023
If you are looking for some immediate payouts, here are four stocks with hefty dividend payments around the corner.