Highest 3-Year Net Profit CAGR Stocks in India
| Symbol | Recent Quarter Profit (Cr) |
10Y CAGR | 5Y CAGR | 3Y CAGR | TTM |
|---|
Frequently Asked Questions
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 CAGR?
CAGR stands for Compound Annual Growth Rate. It tells you how much something (like a company’s profit or revenue) has grown every year compundingly over a period of time. It's a useful way to understand long-term growth.
How CAGR is Calculated?
To calculate CAGR, you need to have the 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 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.