Finest Excessive CAGR Shares in India: Checklist of High Nifty 500 Share Checklist on NSE

Final Up to date on Feb 13, 2025 by Anjali Chourasiya

On the planet of investing, understanding progress metrics is essential to figuring out potential winners within the inventory market. One of the important metrics to evaluate the long-term efficiency of a inventory is the Compound Annual Development Price (CAGR). Traders typically search shares which have delivered excessive CAGR over time, as these shares typically signify constant progress and stability. This text delves into the significance of CAGR, the right way to calculate it, and the right way to spot excessive CAGR shares in India with Tickertape Inventory Screener.

Finest Largecap CAGR Shares

Be aware: The record of the highest 10 CAGR shares in India is derived from Tickertape Inventory Screener as of 18th December 2024 and filtered utilizing the next parameters

• Inventory universe – Nifty 500
• Market Cap – Giant cap
• 5Y CAGR – Excessive (Kind from Highest to Lowest)
• 5Y Avg Web Revenue Margin 

Finest Largecap Excessive CAGR Shares: An Overview

CG Energy and Industrial Options Ltd

CG Energy and Industrial Options Ltd is a number one Indian producer {of electrical} tools specialising in energy transmission and distribution, industrial automation, and motors. Established in 1937, the corporate affords many merchandise, together with transformers, switchgear, management gear, and automation options. 

As of 18th December 2024, the corporate had a market capitalisation of Rs. 117,820.87 cr., and its share worth closed at Rs. 770.80. Moreover, CG Energy and Industrial Options had a PE ratio of 82.56 and a 5-yr CAGR of 131.27%, making it prime our record of excessive CAGR largecap shares. The corporate additionally had a 5-yr common web revenue margin of 8.99%.

Dixon Applied sciences (India) Ltd

Dixon Applied sciences (India) Ltd is a contract producer and digital merchandise supplier in India. Based in 1993, the corporate specialises in manufacturing shopper electronics, dwelling home equipment, lighting merchandise, and cellular handsets for international manufacturers.

As of 18th December 2024, the corporate had a market capitalisation of Rs. 113,775.80 cr., and its share worth closed at Rs. 18,940.15. Moreover, Dixon Applied sciences (India) had a PE ratio of 309.38 and a 5-yr CAGR of 92.87%. The corporate additionally had a 5-yr common web revenue margin of two.23%.

Persistent Methods Ltd

Persistent Methods Ltd is a worldwide expertise companies firm offering software program growth and IT options. Based in 1990, Persistent specialises in digital transformation, cloud computing, synthetic intelligence, and software program engineering for varied industries, together with healthcare, banking, and manufacturing. 

As of 18th December 2024, the corporate had a market capitalisation of Rs. 100,367.80 cr., and its share worth closed at Rs. 6,549.35. Moreover, Persistent Methods had a PE ratio of 91.79 and a 5-yr CAGR of 81.06%. The corporate additionally had a 5-yr common web revenue margin of 10.68%.

Trent Ltd

Trent Ltd, a part of the Tata Group, is a number one retailer in India, primarily identified for its vogue and way of life shops. Established in 1998, Trent operates manufacturers like Westside (vogue and way of life retail), Zudio (worth vogue), and Landmark (books and music retail). The corporate has a powerful retail presence throughout India, specializing in offering high quality merchandise at reasonably priced costs. 

As of 18th December 2024, the corporate had a market capitalisation of Rs. 246,766.95 cr., and its share worth closed at Rs. 6,941.65. Moreover, Trent had a PE ratio of 165.97 and a 5-yr CAGR of 68.16%. The corporate additionally had a 5-yr common web revenue margin of three.34%.

Hindustan Aeronautics Ltd

Hindustan Aeronautics Ltd (HAL) is a state-owned aerospace and protection firm in India, based in 1940. HAL designs, manufactures, and maintains plane, helicopters, and related techniques for the Indian armed forces. 

As of 18th December 2024, the corporate had a market capitalisation of Rs. 309,147.93 cr., and its share worth closed at Rs. 4,622.60. Moreover, HAL had a PE ratio of 40.57 and a 5-yr CAGR of 65.35%. The corporate additionally had a 5-yr common web revenue margin of 18.19%.

Finest Midcap CAGR Shares

Be aware: The record of excessive CAGR mid cap shares is derived from Tickertape Inventory Screener as of 18th December 2024 and filtered utilizing the next parameters

• Inventory universe – Nifty 500
• Market Cap – Mid cap
• 5Y CAGR – Excessive (Kind from Highest to Lowest)
• 5Y Avg Web Revenue Margin 

Finest Smallcap CAGR Shares  

Be aware: The record of greatest CAGR shares is derived from Tickertape Inventory Screener as of 18th December 2024 and filtered utilizing the next parameters

• Inventory universe – Nifty 500
• Market Cap – Small cap
• 5Y CAGR – Excessive (Kind from Highest to Lowest)
• 5Y Avg Web Revenue Margin

Understanding the 5-12 months CAGR

CAGR (Compound Annual Development Price) is a extensively used metric to measure a inventory’s return over a particular interval. In easy phrases, CAGR is the common annual progress price of an funding over a given timeframe. Traders use the 5-year CAGR to know how a inventory has grown year-on-year over the past 5 years.

For instance, for those who invested Rs. 1,00,000 in a inventory 5 years in the past and immediately that funding is value Rs. 2,50,000, the 5-year CAGR would make it easier to perceive the annual progress price of that funding, even when the expansion wasn’t linear.

For instance, the best CAGR shares within the final 10 years in India, like Tata Elxsi and Divi’s Laboratories, have persistently displayed excessive CAGR. When traders analyse inventory CAGR returns, they will higher perceive long-term efficiency, smoothing out annual volatility.

The right way to Calculate 5Y CAGR?

The method for calculating the 5-year CAGR is:

CAGR=(Remaining ValueInitial Worth)15−1CAGR = left( frac{Remaining Worth}{Preliminary Worth} proper)^{frac{1}{5}} – 1CAGR=(Preliminary ValueFinal Worth​)51​−1

Right here’s the way it works:

• Preliminary Worth: The inventory worth 5 years in the past or your preliminary funding.
• Remaining Worth: The inventory worth immediately or the present worth of your funding.
• 5: The variety of years over which you’re calculating the CAGR.

For instance, if the inventory worth of an organization was Rs. 500 5 years in the past, and immediately it’s Rs. 1,500, the CAGR could be:

CAGR=(1500500)15−1≈0.245 or 24.5percentCAGR = left( frac{1500}{500} proper)^{frac{1}{5}} – 1 approx 0.245 textual content{ or } 24.5percentCAGR=(5001500​)51​−1≈0.245 or 24.5%

This implies the inventory grew at a median of 24.5% per 12 months over the past 5 years.

The right way to Determine Excessive CAGR Shares?

Figuring out excessive CAGR shares requires cautious evaluation and screening. Some instruments, like a CAGR inventory screener, will help establish shares which have carried out nicely over a particular interval.

To identify prime CAGR shares in India, significantly within the Nifty 500, give attention to:

1. Historic Efficiency: Take a look at how the inventory has carried out within the final 5, 10, or 20 years. Shares with the best CAGR within the final 10 years in India or the best CAGR shares within the final 20 years in India typically present constant progress.
2. Sector Tendencies: Some sectors naturally have greater progress charges as a result of beneficial trade situations. Shares in these sectors usually tend to be excessive CAGR shares.
3. Monetary Well being: Guarantee the corporate has a powerful steadiness sheet with rising income and income, low debt, and environment friendly administration.

Utilizing these methods, you will discover among the prime CAGR shares within the final 10 years in opposition to a market index which will proceed to carry out nicely sooner or later.

Which Sectors in India Mirror Excessive CAGR?

Sure sectors in India have exhibited excessive CAGR over the past decade as a result of nation’s financial progress, technological developments, and beneficial coverage adjustments. Listed here are a couple of sectors the place traders have seen excessive CAGR shares:

1. Know-how and IT Providers: The expertise sector, together with IT companies, software program, and digital transformation corporations, has persistently delivered among the highest CAGR shares in India. IT shares like TCS and Infosys have proven regular progress over time, making them engaging for long-term traders.
2. Prescribed drugs and Healthcare: India’s pharmaceutical trade has been booming, pushed by rising healthcare demand, exports, and innovation. A number of excessive CAGR large-cap shares and excessive mid cap shares on this sector have carried out exceptionally nicely over time.
3. Client Items and FMCG: Quick-moving shopper items (FMCG) corporations have proven constant progress, with many prime CAGR shares in India coming from this sector. The sector’s resilience and regular demand make FMCG shares a favorite amongst traders.
4. Banking and Monetary Providers: The monetary companies sector, significantly personal banks and NBFCs, has seen strong progress. These corporations typically characteristic among the many greatest CAGR shares as a result of their capacity to broaden operations and enhance profitability.
5. Renewable Vitality and Infrastructure: With the federal government’s push in direction of inexperienced vitality and infrastructure growth, shares on this house are rising as future high-growth gamers. These may probably be among the many greatest CAGR shares for the subsequent 10 years.

Advantages of Investing in Excessive CAGR Shares

Potential for Wealth Acceleration

Excessive CAGR shares for subsequent 10 years in India can supply a possibility for fast wealth progress. Via constant compounding, these shares can considerably enhance in worth, significantly in a dynamic market atmosphere the place sectors like expertise, shopper items, and monetary companies are evolving.

Resilience In opposition to Inflation

Investing in excessive CAGR shares helps traders keep forward of inflation. These shares are likely to develop at a tempo that outstrips inflation, guaranteeing actual wealth appreciation over the long run.

Publicity to Excessive-Development Sectors

Excessive CAGR shares typically belong to fast-growing sectors corresponding to renewable vitality, fintech, and prescription drugs. By investing in such shares, Indian traders can acquire publicity to industries driving the nation’s financial progress.

Lengthy-Time period Capital Appreciation

For these looking for excessive returns over an prolonged interval, excessive CAGR shares are perfect. Over 10–15 years, these investments can compound into substantial wealth, particularly if reinvested in promising progress sectors.

Superior Returns in Bull Markets

Throughout bullish market phases, excessive CAGR shares can outperform conventional investments. Traders can leverage such durations for exponential returns, particularly in India’s equity-friendly local weather.

Dangers of Investing in Excessive CAGR Shares

Volatility

Excessive CAGR shares, particularly small-cap and mid-cap corporations, typically exhibit vital worth volatility. This is because of their smaller market capitalisation, decrease liquidity, and sensitivity to market sentiments. Traders must be ready for sharp worth swings and guarantee their danger urge for food aligns with this inherent instability.

Overvaluation Danger

Excessive-growth shares, together with the highest 10 greatest CAGR shares in India, are regularly priced at a premium as a result of future progress expectations. Nonetheless, this may result in overvaluation, the place the inventory worth considerably exceeds its intrinsic worth. In such circumstances, any slowdown in progress can set off a pointy correction, eroding investor wealth. Cautious evaluation of valuation metrics like P/E, PEG, and EV/EBITDA is essential.

Earnings Sustainability

Firms boasting excessive CAGR might face challenges in sustaining their progress trajectory over the long run. Elements like elevated competitors, market saturation, or operational inefficiencies can result in stagnating earnings, impacting inventory efficiency.

Financial and Market Sensitivity

Excessive CAGR shares in India are sometimes linked to particular sectors that could be extremely delicate to financial cycles. For example, corporations in sectors like infrastructure or expertise are affected by rate of interest adjustments, regulatory selections, or international financial developments.

Liquidity Dangers

Many excessive CAGR shares, significantly within the small-cap and micro-cap segments together with excessive CAGR penny shares, undergo from low liquidity. This could make it troublesome for traders to purchase or promote vital portions with out impacting the inventory worth. Such shares might also be liable to greater bid-ask spreads.

Regulatory and Coverage Dangers

Within the Indian context, high-growth sectors are sometimes topic to dynamic regulatory adjustments. For instance, expertise and monetary companies might face stricter compliance necessities or sudden coverage shifts that may influence profitability and progress prospects.

Conclusion

Investing in excessive CAGR shares within the Nifty 500 could be a good technique for long-term wealth creation. Whereas greater than 50 CAGR shares are uncommon, figuring out corporations with constant progress over time can lead to substantial returns. Utilizing CAGR as a device, traders can streamline their analysis and give attention to corporations with a monitor file of delivering sturdy returns. With the precise evaluation, it’s attainable to establish the very best CAGR shares within the final 10 years. Whether or not you’re excessive CAGR giant cap shares or excessive CAGR small cap shares, conducting thorough analysis will make it easier to make knowledgeable funding selections. Furthermore, you possibly can assess excessive CAGR corporations in India utilizing over 200 filters with Tickertape Inventory Screener to make a data-backed choice.

Steadily Requested Questions About Excessive CAGR Shares

Content material Strategist at Tickertape

Hey there, I’m Harshit Singh Mahey! With eight years of expertise as a Content material Strategist, I’ve had the pleasure of working with a Fortune 100 firm and constructing three profitable startups from the bottom up.

As an funding fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, shares, smallcases, and actual property to establish which belongings generate the best ROI. At Tickertape, I’m devoted to presenting my studying and offering insightful strategies to assist my readers make sound funding choice.

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