fastest
In recent quarters, many companies have struggled to report some good earnings. Covid led lockdown had a big negative impact on them. But there are several companies whose earnings have seen an improvement in covid period too.

In fact, their is an accelerated growth in the businesses of some companies. Growth in financials of these companies has been very good in recent time. Reacting on this accelerated growth, shares of these companies have given multibagger returns since 2020.

If these companies continued to grow at a faster pace for some more time, it might help to lift the share prices of these companies to new heights!

So what are the names of these fastest growing companies??

Before mentioning the names, let me tell you that these stocks have been filtered. Name of only those stocks have been added here where growth in financials has been from Top to Bottom! Means, growth has come in both Revenue and Profit. Additionally, only those names have been added whose Market Capital is atleast Rs 10,000 crore.

For a Low Market Cap company, it can be little easy to rise multifold. But for a Mid Size company, rising multifold times is not always easy unless company has achieved some great growth.

Here is the list of companies or Stocks that have grown at a faster pace in terms of business financials and share price both in last one year.

List of Fast Growing Companies/Stocks in India

Note: In Financials column, REV means Revenue and PAT means Profit.
Company NamePast 1 Year ReturnsFY2021
FINANCIALS
FY2020
FINANCIALS
Alkyl Amines326%REV—1,242
PAT—295
REV-993
PAT-215
Tanla Platforms1,080%REV—2,341
PAT—356
REV—1943
PAT—(-211)
Lux Industries231%REV—1,938
PAT—273
REV—1,203
PAT—126
Laurus Labs520%REV—4,814
PAT—984
REV—2,832
PAT—255
Affle India250%REV—517
PAT—135
REV—334
PAT—66
Vaibhav Global237%REV—2,540
PAT—272
REV—1,986
PAT—190
CDSL266%REV—344
PAT—200
REV—225
PAT—106
Dixon Technologies300%REV—6,448
PAT—160
REV—4,400
PAT—120
Astral200%REV—3,176
PAT—404
REV—2,578
PAT—248
Apl Apollo Tubes374%REV—8,500
PAT—360
REV—7,723
PAT—238
Persistent Systems334%REV—4,188
PAT—451
REV—3,566
PAT—340

So, these were the stocks where Great growth in financials in covid period too has helped their prices to reach a new height.

There are some stocks where even after achieving great growth, share prices are not able to move much. But investors in these stocks have positively reacted on the growth. Better growth has caused increased demand of these stocks among investors, due to which stocks have been able to see a great rise.

What are the chances of these Fast Growing Stocks to perform in Future?

If mentioned companies continued to show encouraging growth in financial numbers in future too, then prices of these stocks are also expected to see a good rise in future. Growth Potential in these stocks has still not peaked yet. That means, efforts of management can still push the Financial numbers or Business of these Growth companies to new heights.

Is there any High Risk in these Fast Growing Companies?

Generally, when a stock is in a phase of High Growth, their PE or Price to Earning Ratio might see some kind of re-rating. In other words, it might see some expansion in figure. Say ABC stock trade around 20 PE during its slow growth phase. Then, it doesn’t necessary that stock will still be trading with 20 PE when the phase will be of High Growth. PE could reach to 30, 40 or more higher figure on the back of high demand of stock of among investors.

When the ABC company will again move to slow growth phase, the PE (Valuations) might also see some decline and move to 20 levels again. When this thing happens, share price might see some extra decline or correction in price compared to what is happening in the financials.

.

.

.

That is the end of this post.

Good Luck : )

Get Free Blog Post Updates!

Write us

Find us at the office

Darmofal- Broderick street no. 11, 88736 Vatican City, Vatican City

Give us a ring

Meadow Hipsley
+90 293 316 242
Mon - Fri, 8:00-14:00

Join us