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Fastest Growing
Companies in India in
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2018
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POSTED BY: MANI

People love
RECENT POSTS
to buy
stocks of
How to
fastest Stop
Overspen
growing
ding of
companies. money?

In a more
What is
colloquial
the
term we call such stocks as growth stocks. effective
income
Early inclusion of such stocks in investment tax paid
on
portfolio ensure maximum returns. salary?

Stock investors considers EPS growth rate as What is


Annuity?
the most reliable indicator of growth. Types of
Annuity
in India
When EPS of companies grow at a fast
rate, they attract more investment.
Financial
Intelligen
Earning per share (EPS) is one nancial ce for
Common
parameter that has direct in uence on Men

market price of its stocks.


First Job?
Build
If EPS is growing, stock price will also rise Millions,
at same rate. If EPS is diminishing, stock Start
Financial
price will also fall at same rate. Planning

What is EPS? Why it is the most tracked


nancial parameter of a company?
MOST DISCUSSED POSTS

EPS is easy to understand.  It is also the


Home
most important stock data (if not Loan
Prepayme
tampered). nt
Calculato
r – Free
No other nancial parameter in uences
stock price more directly than EPS.
Best
Stocks to
Every change in EPS is instantly re ected in Buy in
India for
market price of stocks. Hence as an long term
in 2018
investor, it is always advisable to keep an
eye of historical EPS movements of a How to
Save
company. Money in
India?

Standalone EPS may not be as interesting,


How to
but historical EPS makes a lot of meaning. Build
Assets
with
Earning per share (EPS) breaks down net Little
Money
pro t of a company (PAT) into per share
value.
Debt Free
Compani
Suppose a company has PAT of Rs 5.0 es in
India
Crore & its number of share outstanding is 2017
1.0 crore nos. In this case its EPS will be
Rs 5/share (Rs 5 crore/1crore).

EPS is any day more important than PAT


(net pro t) for investors. Its is a must look
deeply into EPS history before investing.

PAT’s historical gures gives only a feel


about the company. Real impact of PAT is
felt by investors when it is converted in
EPS.

The Impact of EPS growth on market price


is more direct than PAT growth.

P/E ratio dictates stocks


market price?
A reliable stock always maintains its P/E
ratio. Ratio between market price and EPS
is P/E ratio (PE = Price/EPS).

A reasonable P/E ratio for any stock is 15.

Keeping P/E as constant, formula for market


price will be:

Market Price1 = 15 x EPS1.

Same formula with EPS growth rate (R) will


like this:

Market Price2 = 15 x EPS1 (1+R).

So this way, if EPS is growing its market


price will also appreciate.

For investors EPS history is


everything?
After EPS, sales growth is another
parameter that investors track the most.
EPS is a product of companies pro ts (PAT).
It is di cult for company to improve EPS if
its sales turnover is not improving.
A typical formula for companies pro t is:
Sales x Pro tability = Pro t.

Considering a case where companies


pro tability remains constant at 10%. Lets
incorporate this assumption in our formula
and see how it evolves. Sales x 10% =
Pro t.

To improve companies Pro t (PAT or EPS),


companies sales must grow.

In business, fastest growing company are


often graded in terms of its sales turnovers.
Sales growth strategy is one of the most
reliable and proven business strategy.

Companies which are able to increase its


sales turnover year after year are likable.
This liking becomes more dominant when
sales turnover growth becomes fast.

Almost all good companies increase their


sales every year. But companies with
competitive moat do it faster than others.
For these companies, increase in sales
turnover represents market domination.
Not everyone can dominate the market.
Only companies with exception product and
astute management can achieve this feat.

Investors must keep a watch on sales


growth gures of companies.

Additional check for fast growing


companies

A portion of companies pro t (PAT or EPS)


is distributed a.s dividends to shareholders.
The balance pro t which remains with the
company is called Reserves.

Companies reserves are declared in


companies balance sheets. Investors like a
continuously increasing Reserves. Growing
reserves makes companies more self reliant.

A company which has huge reserves (like


Hindustan Zinc) do not depend on debt to
nance its working capital. Debt is a tool
which temporarily improves companies cash
ow. But in long run it increases companies
expense and hence decreases companies
pro ts. Sales – (Expense+ Interest on debt)
= Pro t.
Fastest Growing Companies
in India 2018
(Updated on March’2018)

Sales Income Growth Rate

Sales Sa
Market Income Inc
SL Company Sector Price
Cap (Cr) Growth Gro
(1Y) (

Textiles-
Vardhman
Cotton &
1 Holdings 4450 1432.55 260.61 11
Blended
Ltd.
Yarn

Healthcare-
Natco
2 Drugs & 770 14242.89 77.01 39
Pharma Ltd.
Pharma

Financial-
Alphageo
3 Business 811.55 517.07 241.48 48
(India) Ltd.
Consultancy

Aryaman Financial-
4 Financial Hire 49 57.24 100.78 71
Services Ltd. Purchase

Healthcare-
5 Cupid Ltd. Drugs & 294 320.45 35.63 61
Pharma

Source
Natural Healthcare-
6 Foods & Drugs & 109 66.94 45.89 51
Herbal Pharma
Suppl Ltd.

Chemicals-
Aksharchem
7 Dyes & 633.65 513.48 38.33 21
(India) Ltd.
Pigments

Chemicals-
Fiberweb
8 Other 154.5 440.51 68.31 17
India Ltd
Plastic Prod.
9 Avanti FMCG- 2384.1 10807.68 35.39 34
Feeds Ltd. Marine
Foods

Minda Automobile-
10 Industries Auto 1127.45 9767.9 38.68 27
Ltd. Ancillaries

EPS Growth Rate

EPS E
Market
SL Company Sector Price Growth Gro
Cap (Cr)
(1Y) (

Textiles-
Vardhman
Cotton &
1 Holdings 4450 1432.55 277.09 11
Blended
Ltd.
Yarn

Healthcare-
Natco
2 Drugs & 770 14242.89 208.47 64
Pharma Ltd.
Pharma

Financial-
Alphageo
3 Business 811.55 517.07 300.1 2
(India) Ltd.
Consultancy

Aryaman Financial-
4 Financial Hire 49 57.24 199.26 58
Services Ltd. Purchase

Healthcare-
5 Cupid Ltd. Drugs & 294 320.45 28.91 63
Pharma

Source
Natural Healthcare-
6 Foods & Drugs & 109 66.94 229.12 87
Herbal Pharma
Suppl Ltd.

Chemicals-
Aksharchem
7 Dyes & 633.65 513.48 212.05 20
(India) Ltd.
Pigments

Chemicals-
Fiberweb
8 Other 154.5 440.51 90 16
India Ltd
Plastic Prod.

9 Avanti FMCG- 2384.1 10807.68 36.09 44


Feeds Ltd. Marine
Foods

Minda Automobile-
10 Industries Auto 1127.45 9767.9 51.28 18
Ltd. Ancillaries

Net Worth Growth Rate

Net N
Market Worth W
SL Company Sector Price
Cap (Cr) Growth Gro
(1Y) (

Textiles-
Vardhman
Cotton &
1 Holdings 4450 1432.55 64.58 31
Blended
Ltd.
Yarn

Healthcare-
Natco
2 Drugs & 770 14242.89 26.69 28
Pharma Ltd.
Pharma

Financial-
Alphageo
3 Business 811.55 517.07 63.11 31
(India) Ltd.
Consultancy

Aryaman Financial-
4 Financial Hire 49 57.24 43.55 19
Services Ltd. Purchase

Healthcare-
5 Cupid Ltd. Drugs & 294 320.45 42.06 40
Pharma

Source
Natural Healthcare-
6 Foods & Drugs & 109 66.94 25.25 17
Herbal Pharma
Suppl Ltd.

Chemicals-
Aksharchem
7 Dyes & 633.65 513.48 57.45 38
(India) Ltd.
Pigments

Chemicals-
Fiberweb
8 Other 154.5 440.51 216.33 41
India Ltd
Plastic Prod.

9 Avanti FMCG- 2384.1 10807.68 51.16 52


Feeds Ltd. Marine
Foods
Minda Automobile-
10 Industries Auto 1127.45 9767.9 54.92 32
Ltd. Ancillaries

Return in Last Years

Return Re
Market
SL Company Sector Price in last in
Cap (Cr)
3Yr. 5

Textiles-
Vardhman
Cotton &
1 Holdings 4450 1432.55 85.21 51
Blended
Ltd.
Yarn

Healthcare-
Natco
2 Drugs & 770 14242.89 42.51 56
Pharma Ltd.
Pharma

Financial-
Alphageo
3 Business 811.55 517.07 18.08 82
(India) Ltd.
Consultancy

Aryaman Financial-
4 Financial Hire 49 57.24 38.28 1
Services Ltd. Purchase

Healthcare-
5 Cupid Ltd. Drugs & 294 320.45 64.95 10
Pharma

Source
Natural Healthcare-
6 Foods & Drugs & 109 66.94 90.32 53
Herbal Pharma
Suppl Ltd.

Chemicals-
Aksharchem
7 Dyes & 633.65 513.48 49.28 87
(India) Ltd.
Pigments

Chemicals-
Fiberweb
8 Other 154.5 440.51 228.02 10
India Ltd
Plastic Prod.

FMCG-
Avanti
9 Marine 2384.1 10807.68 95.55 15
Feeds Ltd.
Foods

10 Minda Automobile- 1127.45 9767.9 111.53 98


Industries Auto
Ltd. Ancillaries

Disclaimer: All blog posts of getmoneyrich.com are for


information only. No blog posts should be considered
as an investment advice or as a recommendation. The
user must self-analyze all securities before investing in
one.

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27 COMMENTS

ON "FASTEST GROWING COMPANIES IN INDIA IN 2018"

Ramesh Bhardwaj | January 7, 2018 at 6:01 am |


Reply

Excellent article!
Saritha | December 13, 2017 at 4:36 pm | Reply

First time understood terminology . Thanks for


simple beautiful . Thanks a lot

Manish Agrawal | November 21, 2017 at 4:36 pm |


Reply

It is a Surprising thing that Eicher Motor is


missing in your list.

Murugesan | November 12, 2017 at 5:07 pm | Reply

Dear Mani,

You mentioned about “Pincon Spirit Ltd” but


there are no mutual fund holdings in it. Their
nance performance sounds good. Is it worth
to invest in Pincon?

Anand | October 13, 2017 at 3:11 pm | Reply

Inox wind is a emerging company then why the


share price is decreasing ? Please explain

Kaustav Roy | September 2, 2017 at 11:24 am |


Reply
Great article. I think ideal way to analyse
companies before investing in them is STOCK
EDGE APP in mobile. Any investor can try it.

SANJAY MULAY | September 1, 2017 at 4:57 pm |


Reply

High growth companies include Bajaj Finance /


Bajaj Finserv, Mahanagar Gas Limited, D Mart,
DHFL, ICICI Pru Life Insurance Co. etc.

M.Chandraprabakaran | August 26, 2017 at 10:51


pm | Reply

Hello Sir your article is very useful and person


who is having only little knowledge about share
market can easily understand to select good
Indian stocks. I appreciate your good work.
Keep going.
Thank you
M.Chandraprabakaran

Arunachalam M | August 14, 2017 at 11:01 am |


Reply

For wealth creation through investments the


information given is very useful.Keep it up.

Arinjaya Jain | August 8, 2017 at 4:36 am | Reply

Highly educative. Appriciate more if current p/e


ratio also given
Amit | August 3, 2017 at 12:27 pm | Reply

Thank you very much.


Could you please suggest some companies
name for long term investment as i have 10000
rupee of investment.

Raushan singh | July 14, 2017 at 1:52 pm | Reply

really praiseworthy. thinking

Rayan | March 21, 2017 at 1:56 am | Reply

25 Arvind Remedies Ltd 316.79M 0.45 0.01


34.60 64.77 39.97

The above mentioned company suspended the


trading.

Peeyush Kumar | February 28, 2017 at 8:36 am |


Reply

If all based on proper reseaech it will proved.

Damodaram Geeni | January 7, 2017 at 5:18 am |


Reply

I really appreciate your analysis through which


people like me can certainly be enlightened and
bene tted too

GNRAO | November 22, 2016 at 12:12 am | Reply

THIS IS VERY GOOD INFORMATION . HIGHLY


USEFUL FOR INVESTMENT IN INDIAN STOCKS.
THANK YOU.

SANJAY MULAY | September 30, 2016 at 10:10 am


| Reply

The information given is very important for


investment purpose. Thanks.

Dom | September 24, 2016 at 12:41 pm | Reply

You and your site are awesome!


I prefer to invest along the views expressed
here.
And, I am doing well!
How about a fortnightly/monthly list?

JAMES | July 25, 2016 at 10:31 pm | Reply

YOU ARE TOO GOOD………… HIGHLY


APPRECIATED , FOR SHARING SUCH IN
FORMATIONS .

Shiela | February 11, 2016 at 8:21 pm | Reply


You can certainly see your expertise in the
article you write.
The rena hopes for more passionate writers like
you who aren’t afraid to mention how they
believe. At all times follow yoiur heart.

Ankit Shah | February 9, 2016 at 3:50 pm | Reply

I like your articles and it helps me in narrowing


down my shortlist but I request you to put the
date and time in your articles. It makes things
more clearer with respect to market timing

sanjay | January 17, 2016 at 11:49 am | Reply

in eps growth rate what Mkt price = 15XEPS (


1+R ) Now what does R Means here Plase
explain

GetMoneyRich.Blogger | January 17, 2016 at


7:26 pm | Reply

R = EPS growth rate

Rajeeva Kumar Tripathy | January 9, 2016 at 11:58


pm | Reply

The nancial information to build wealth over a


period of time is excellent.
Chandu | November 30, 2015 at 10:44 am | Reply

Nice site

saran2sai | August 14, 2015 at 3:32 am | Reply

I too made some research on the above four


parameters and found that about 70% of these
stocks match with similar search in the
reuters.com, nance.google.com, and ft.com.
They are really not moderate stocks and surely
they may grow well and faster in ve years’
time. But, in the market, there is no much
demand for them and thats why they lie low.

Siddhesh | February 20, 2015 at 12:42 pm | Reply

I have been searching online for the ideal way


to analyse companies before investing in them
and found your blog at the right time. So would
you say that the companies with a decent sales
turnover are good ones to opt for ?

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