Fundamentally strong stocks with 3 yr net profit CAGR of up to 70% to keep on your radar

Compounded Annual Growth Rate (CAGR)  is an important way to measure how much something has grown over a period of time. Unlike simple growth rates, CAGR gives a smooth and accurate picture of yearly growth, even if the actual growth changes each year.

Listed below are 3 fundamentally strong companies with consistent revenue and net profit growth, backed by high-quality management, with a Net profit CAGR of more than 70 %:

1. Mazagon Dock Shipbuilders

Mazagon Dock Shipbuilders Limited (MDL) is India’s leading shipyard, specializing in building warships, submarines, and commercial vessels. Established in 1934 and headquartered in Mumbai, MDL constructs advanced naval assets, including stealth frigates, destroyers, and submarines for the Indian Navy, along with merchant ships and offshore platforms. 

In FY24, the company got a revenue of Rs. 10,568 Crore, up 24.12 percent from Rs. 8,514.1 Crore in FY2023, and Net profit of Rs. 1808.88 Crore, 72.92 percent increase from Rs. 1046.07 Crore. 

Over 3 years, the Net profit CAGR is 58.62%, and 3 years average ROE is 10.96 percent and ROCE is 13.36 percent.

2. Apar Industries

Apar Industries Limited, established in 1958, is a diversified Indian company specializing in electrical and metallurgical engineering. Headquartered in Mumbai, it operates across multiple segments, including power transmission conductors, transformer and specialty oils, and power and telecom cables. The company has a significant global presence, exporting to over 140 countries.

In FY24, the company got a revenue of Rs. 16,239 Crore, up 12.85 percent from Rs. 14,389 Crore in FY2023, and Net profit of Rs. 825.11 Crore, a 29.38 percent increase from Rs. 637.72 Crore. 

Over 3 years, the Net profit CAGR is 72.76 percent, and 3 years average ROE is 9 percent and ROCE is 14.62 percent.

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3. Uno Minda

Uno Minda Limited, established in 1958 and headquartered in Gurugram, India, is a leading global manufacturer of proprietary automotive solutions and systems, serving as a Tier-1 supplier to original equipment manufacturers (OEMs). The company offers a diverse product portfolio encompassing over 25 categories, including automotive switches, lighting systems, acoustics, seating systems, and alloy wheels, catering to various vehicle segments such as passenger cars, two-wheelers, commercial vehicles, and off-road vehicles.

In FY24, the company got a revenue of Rs. 14,064 Crore, up 24.62 percent from Rs. 11,285 Crore in FY2023, and Net profit of Rs. 924.71 Crore, a 32.05 percent increase from Rs. 700.23 Crore. 

Over 3 years, the Net profit CAGR is 60.38 percent, and 3 years average ROE is 6.78  and ROCE is 6.95 percent.

Written By Abhishek Das

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