Highest 10-Year Net Profit CAGR Stocks in India
Which Indian companies have truly compounded their profits over the long run?
This page highlights businesses across the Nifty 500 that have delivered the highest Compound Annual Growth Rate (CAGR) in net profit over the last 10 years.
| Symbol | Recent Quarter Profit (Cr) | 10Y CAGR | 5Y CAGR | 3Y CAGR | TTM |
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FAQs
What CAGR stands for?
Cagr stands for Compound annual growth rate
What is 10-Year Profit CAGR?
It’s a reliable way to understand how steadily a company has improved its earnings over the long term.
This kind of compounding is crucial for long-term investors who seek consistent performance.
How CAGR is Calculated?
To calculate CAGR, you need to have following values:
- The beginning value of the investment
- The ending value of the investment
- The number of years the investment was held
The formula for CAGR is:
CAGR = (Ending Value / Beginning Value) ^ (1 / Number of Years) – 1
This formula gives you the average annual growth rate over the investment period, even if the investment value changed unevenly during those years.
Example:
If you invested ₹10,000 and it became ₹15,000 in 3 years, the CAGR would be calculated as:
CAGR = (15,000 / 10,000) ^ (1 / 3) – 1
CAGR = (1.5) ^ 0.333 – 1
CAGR ≈ 0.1447 or 14.47% per year
This means your investment grew at an average rate of 14.47% annually over the 3 years.
What is Net Profit?
Net Profit is the money a company earns after deducting all expenses, taxes, and costs.
It reflects the company’s actual earnings. A rising net profit over the years often indicates a growing and efficient business.
What is Nifty 500?
The Nifty 500 index includes the top 500 listed companies on NSE across various sectors. It gives a broad and diversified view of the Indian stock market and is often used to identify leaders in each industry.