Last Updated on Jul 12, 2023 by Anjali Chourasiya
When it comes to investing in the Indian stock market, one strategy that often captures the attention of investors is focusing on growth stocks. They are known for their potential to generate significant capital appreciation over time, making them an attractive investment option for those seeking long-term gains. For risk-averse investors, these stocks can be considered the best stocks to invest in India. But how do you find these fastest-growing shares?
In this article, let’s explore how you can get the best growth stocks in India with just a few clicks.
Table of Contents
How to use Tickertape to list growth stocks?
Tickertape Stock Screener offers various advantages to investors, such as over 200 filters, custom filters, a custom universe, export, and pre-built screens. With the help of all these features, conducting a thorough analysis becomes easy.
Returning to growth stocks, here’s how you can get an updated list of growth stocks within a few clicks.
Step 1: Go to Tickertape Stock Screener.
Step 2: Click on ‘All Screens’ and then click on ‘See All’ under ‘Premium’.
Step 3: Click on ‘Growth Bargains’ and click on ‘Load’.
That’s it! There’s your list of high-growth stocks. Now, before we dive into them, let’s have a quick look at the filters used to get the list of top growth stocks.
Market Cap: The market cap of companies allows you to focus on companies of a certain size, whether you’re looking for established large-cap companies or emerging small-cap opportunities.
5-Year Average Return on Equity (ROE): A company’s 5-yr average ROE identifies companies that consistently generate impressive returns on their shareholders’ equity. It also highlights companies with a track record of efficiently utilising their capital to generate profits.
5-Year Historical Revenue Growth: The historical revenue growth identifies companies that have experienced consistent revenue expansion, indicating their ability to capture market share and drive top-line growth.
5-Year Historical EPS Growth: A company’s 5-yr historical EPS growth is an essential metric that is used to identify companies that have consistently increased their profitability over time.
5-Year Historical Operating Cash Flow Growth: Cash flow is a crucial indicator of a company’s financial health. The 5-yr historical growth in operating cash flow helps you identify companies that have been successful in generating cash from their operations.
PE Premium vs. Sector: This filter compares a company’s PE ratio to its sector’s average PE ratio. It enables you to identify companies that are trading at a discount relative to their peers in the same industry, potentially indicating undervaluation.
Best growth stocks in India
Based on the filters mentioned above, the top growth stocks on 12th July 2023 are listed below.
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | 5Y Avg Return on Equity (%) | 5Y Historical Revenue Growth (%) | 5Y Historical EPS Growth (%) | 5Y Hist Op. Cash Flow Growth (%) | PE Premium vs Sector (%) | PE Ratio |
| Caplin Point Laboratories Ltd | Pharmaceuticals | 6,185.18 | 814.55 | 31.23 | 22.48 | 20.97 | 37.87 | -56.73 | 16.44 |
| Laurus Labs Ltd | Pharmaceuticals | 19,219.07 | 356.80 | 23.12 | 23.73 | 35.92 | 23.75 | -35.97 | 24.32 |
| Coromandel International Ltd | Fertilisers & Agro Chemicals | 28,356.08 | 964.35 | 26.73 | 21.74 | 23.69 | 17.55 | -31.62 | 14.09 |
| CMS Info Systems Ltd | Software Services | 5,842.50 | 378.40 | 16.24 | 20.58 | 30.27 | 16.30 | -24.18 | 19.66 |
| Mastek Ltd | IT Services & Consulting | 6,000.55 | 1,961.60 | 18.08 | 25.67 | 26.75 | 44.88 | -21.01 | 20.48 |
| Mphasis Ltd | IT Services & Consulting | 35,991.56 | 1,908.85 | 20.87 | 15.79 | 15.98 | 15.11 | -15.24 | 21.97 |
| Kirloskar Ferrous Industries Ltd | Iron & Steel | 6,953.86 | 500.30 | 18.53 | 29.58 | 59.38 | 37.40 | -14.57 | 17.60 |
| GMM Pfaudler Ltd | Industrial Machinery | 6,698.63 | 1,490.00 | 19.19 | 50.73 | 50.46 | 60.12 | -0.61 | 40.20 |
You can add other filters from the 200 filters available in the Screener to get a list of growth stocks based on your preferred criteria. Explore the Screener today!
To conclude
Investing in growth stocks can be rewarding for investors seeking substantial returns. However, it is essential to note that investing always carries a degree of risk, and thorough research should be conducted before making any investment decisions. To mitigate the risks of investing, use Tickertape’s Scorecard feature that shares information about the red flags of a company. With this, you can understand the stocks deeply and avoid investing in companies with potential red flags. Explore Scorecard now!
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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