Revenue Doubling Guidance: 5 Companies Guiding for 40-50 Per cent CAGR Growth in Revenue – Mega Multibaggers of the Future?
High-Growth Prospects: 5 Companies Aiming to Double Revenue with 40-50 per cent CAGR, 2x Revenue Guidance by Management
In the stock market, short-term price movements are often driven by investor sentiment, market rumors, and news events. However, over the long term, the fundamental driver of stock prices is a company's earnings growth. Identifying which companies are likely to report strong earnings growth is crucial for finding potential multibagger stocks—those rare gems that can multiply investors' wealth several times over.
Earnings growth is a key factor in the search for multibaggers. Companies that guide for robust earnings growth of 40-50 per cent compounded annual growth rate (CAGR) are particularly promising. Such growth rates imply a potential doubling of revenue in just two years, making these stocks attractive for long-term investment. In this article, we will delve into companies that have projected a 40-50 per cent CAGR in their earnings and explore the factors contributing to their growth potential.
Note: Zaggle listed on NSE in September last year, and the returns are since listing
Note: The guidance for Kaynes Technology is for FY25 and hence, it is not a CAGR.
1. Sky Gold
Sky Gold, a Small-Cap stock engaged in the business of designing, manufacturing, and marketing gold jewelry, reported FY24 revenue of Rs 1,745 crore. The company has guided for Rs 6,300 crore in revenue by FY27, translating to a revenue growth of 53 per cent CAGR.
2. Zaggle Prepaid Ocean Services
Zaggle builds world-class financial solutions and products to manage the business expenses of corporates, SMEs, and start-ups through automated and innovative workflows. For FY24, the company's revenue stood at Rs 776 crore, with guidance for doubling revenue in the next two financial years. (Note: Zaggle listed on NSE in September last year, and the returns are since listing.)
3. C.E Info Systems
A leading provider of advanced digital maps, geospatial software, and location-based IoT technologies serving B2B and B2B2C enterprise customers. The company has guided for a CAGR of 35-40 per cent revenue growth by FY27/28.
4. Hariom Pipe Industries
A leading integrated steel pipes and tubes player, Hariom Pipe Industries has set a target of Rs 2,500 crore in revenue by FY26. With FY24 revenue at Rs 1,153 crore, this target translates to a CAGR of 47 per cent .
5. Kaynes Technology India
Kaynes Technology is a leading end-to-end IoT solutions-enabled integrated electronics manufacturing company. The company provides conceptual design, process engineering, integrated manufacturing, and life-cycle support for major players in various sectors such as automotive, industrial, aerospace and defense, outer-space, nuclear, medical, railways, IoT, IT, and others. The company has guided for revenue growth of greater than 60 per cent for FY25. (Note: The guidance for Kaynes Technology is for FY25 and hence, it is not a CAGR.)
Understanding the growth potential and strategic direction of these companies is crucial for investors looking to capitalize on multibagger opportunities. These companies have shown significant promise through their projected earnings growth, making them noteworthy candidates for long-term investment portfolios.
Disclaimer: The article is for informational purposes only and not investment advice.