Net profit margins are crucial metrics for evaluating a company’s financial health. Net profit margin shows what percentage of revenue becomes profit after all expenses, taxes, and costs are deducted, indicating operational efficiency. A 100% CAGR in net profit over 5 years means the profit doubled each year.
This exceptional growth in net profit suggests strong business fundamentals, efficient cost management, and effective scaling of operations. For a small-cap company, such robust profit growth often indicates potential for market expansion, capacity for reinvestment in business development, and increased attractiveness to investors, potentially leading to better market valuations and growth opportunities.
1. TD Power Systems Limited
TD Power Systems Limited (TDPS) is a prominent Indian company specializing in the manufacturing of AC generators and electric motors. Established in 1999 and headquartered in Bengaluru, Karnataka, TDPS has developed a strong presence in both domestic and international markets.
With a market capitalization of Rs. 6,970 crores, TD Power Systems Limited’s share price closed at Rs. 444 per equity share. Over the last 5 years, the company has given a massive return of 1385.48percent.
TD Power Systems Limited’s revenue and net profit have grown at a CAGR of 16.88 percent and 108.43 percent, respectively, over the last five years.
TD Power Systems Limited’s revenue from operations has increased by 14.79 percent from Rs. 872 crore in FY23 to Rs. 1,001 crore in FY24. The company’s net profit has increased from Rs. 97 crore in FY23 to Rs. 118 crore in FY24, which has grown by 21.65 percent.
The company’s ROCE and ROE should be 25.4 percent and 18.1 percent, respectively. TD Power Systems Limited has a debt-free company and an EPS of Rs. 8.68.
2. Piccadily Agro Industries Limited
Piccadily Agro Industries Limited (PAIL) is an Indian company primarily engaged in the manufacturing of sugar and its by-products. Established in 1994, the company commenced commercial operations in 1997 and has since expanded its portfolio to include distillery products.
With a market capitalization of Rs. 6,856 crores, Piccadily Agro Industries Limited’s share price closed at Rs. 727 per equity share. Over the last 5 years, the company has given a massive return of 10,065.52 percent.
Piccadily Agro Industries Limited’s revenue and net profit have grown at a CAGR of 14.87 percent and 122.88 percent, respectively, over the last five years.
Piccadily Agro Industries Limited’s revenue from operations has increased by 24.08 percent from Rs. 598 crore in FY23 to Rs. 742 crore in FY24. The company’s net profit has increased from Rs. 22 crore in FY23 to Rs. 110 crore in FY24, which has grown by 400 percent.
The company’s ROCE and ROE should be 29.6 percent and 30.6 percent, respectively. Piccadily Agro Industries has a debt-to-equity ratio of 0.35x and an EPS of Rs. 13.3.
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3. Kirloskar Brothers Limited
Kirloskar Brothers Limited was established in 1888 and incorporated in 1920, KBL is the flagship entity of the Kirloskar Group. Kirloskar Brothers Limited (KBL) is a leading Indian company specializing in fluid management solutions, primarily through the manufacturing of pumps and related systems.
With a market capitalization of Rs. 17,319 crores, Kirloskar Brothers Limited’s share price closed at Rs. 2,180 per equity share. Over the last 5 years, the company has given a massive return of 1,413.87 percent.
Kirloskar Brothers Limited’s revenue and net profit have grown at a CAGR of 3.62 percent and 159.05 percent, respectively, over the last five years.
Kirloskar Brothers Limited’s revenue from operations has increased by 7.27 percent from Rs. 3,730 crore in FY23 to Rs. 4,001 crore in FY24. The company’s net profit has increased from Rs. 236 crore in FY23 to Rs. 350 crore in FY24, which has grown by 48.31 percent.
The company’s ROCE and ROE should be 27.3 percent and 21.7 percent, respectively. Kirloskar Brothers has a debt-to-equity ratio of 0.09x and an EPS of Rs. 49.7.
4. Suraj Estate Developers Limited
Suraj Estate Developers Limited is a well-known real estate company based in Mumbai, India, established in 1986. The company specializes in the development of residential and commercial properties, primarily in the South Central Mumbai region, including areas like Dadar, Mahim, and Prabhadevi.
With a market capitalization of Rs. 2,647 crores, Suraj Estate Developers Limited’s share price closed at Rs. 598 per equity share. Over the years, the company has given a massive return of 75.47 percent.
Suraj Estate Developers Limited’s revenue and net profit have grown at a CAGR of 63.74 percent and 101.84 percent, respectively, over the last five years.
Suraj Estate Developers Limited’s revenue from operations has increased by 34.64 percent from Rs. 306 crore in FY23 to Rs. 412 crore in FY24. The company’s net profit has
increased from Rs. 32 crore in FY23 to Rs. 67 crore in FY24, which has grown by 109.38 percent.
The company’s ROCE and ROE should be 28.7 percent and 23 percent, respectively. Suraj Estate Developers has a debt-to-equity ratio of 0.79x and an EPS of Rs. 22.
Written By – Nikhil Naik
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