Highest 3-Year Net Profit CAGR Stocks in India
| 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 3-Year Profit CAGR?
It’s a reliable way to understand how steadily a company has improved its earnings over the years.
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.