Over the past decade, several stocks have shown impressive Compound Annual Growth Rates (CAGR), reflecting their strong performance and growth potential. CAGR is a useful metric to gauge the average annual growth rate of an investment over time, considering compounded growth. It helps investors evaluate mutual funds and identify the best return schemes, smoothing out returns even during volatile periods.
Stocks with the Highest CAGR Growth (NSE 500):
- KEI Industries: +64.61%
- Olectra Green: +64.52%
- Uno Minda: +56.80%
- Tanla Platforms: +54.33%
- Adani Enterprises: +50.57%
- Trent: +50.21%
- PCBL: +47.70%
- Action Construction Equipment: +45.16%
- Deepak Nitrite: +44.58%
- APL Apollo Tubes: +44.17%
- Saregama: +43.90%
- HBL Power Systems: +43.22%
- JBM Auto: +43.10%
- Jai Balaji Industries: +42.85%
- Jupiter Wagons: +42.90%
- KPR Mill: +42.56%
- Escorts: +41.83%
- Titagarh Wagons: +41.38%
- Bajaj Finance: +40.00%
- FACT: +40.00%
Source: (Sumit Mehrotra via X)
KEI Industries’ Recent Performance:
KEI Industries, a leading manufacturer of wires and cables, has seen its share price rise by 3%, despite a recent labour strike that impacted operations. The strike, which began in June at its Rakholi and Chinchpada units in the Union Territories of Daman and Diu and Dadra & Nagar Haveli, halted production and caused a loss of approximately ₹10 crore. However, operations at these facilities have now resumed, and production is expected to ramp up, according to a statement from the company.
Understanding CAGR and Risk:
While CAGR provides a “smoothed” annual yield and helps assess long-term growth, it’s essential to note:
- CAGR doesn’t reflect investment risk: It smooths out annual returns and doesn’t account for volatility or fluctuations in investment value.
- Consistency in time periods: Ensure the same time periods are used when calculating CAGR to get accurate comparisons.
