Individual investors like stocks with a high growth potential. These companies have a strong outlook that can bring a significant upside to your portfolio, regardless of market cyclicality. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them a good investment if you believe the growth has not already been reflected in the share price.
Blue Star Limited (BSE:500067)
Blue Star Limited engages in the central air conditioning and commercial refrigeration business in India and internationally. Founded in 1943, and run by CEO B. Thiagarajan, the company currently employs 2,711 people and has a market cap of INR ₹76.19B, putting it in the large-cap group.
500067 is expected to deliver an extremely high earnings growth over the next couple of years of 30.77%, driven by a positive double-digit revenue growth of 36.88% and cost-cutting initiatives. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 25.99%. 500067’s impressive outlook on all aspects makes it a worthy company to spend more time to understand. Considering 500067 as a potential investment? Have a browse through its key fundamentals here.
TVS Motor Company Limited (BSE:532343)
TVS Motor Company Limited, together with its subsidiaries, manufactures and sells automotive vehicles, components, and spare parts and accessories in India. Founded in 1992, and run by CEO K. Radhakrishnan, the company provides employment to 4,405 people and with the market cap of INR ₹306.76B, it falls under the large-cap group.
Driven by the positive double-digit sales growth of 39.01% over the next few years, 532343 is expected to deliver an excellent earnings growth of 28.54%. An affirming signal is when net income increase is supported by top-line growth. Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. This prospective profitability should trickle down to shareholders, with analysts expecting the company to generate a high double-digit return on equity of 29.77%. 532343 ticks the boxes for robust growth generation on all levels of line items, which makes it an appealing stock to dig into deeper. Want to know more about 532343? Have a browse through its key fundamentals here.