Best Growth Stocks In India 2024

  • 18 Apr 2024
  • Read 14 mins read

Companies having a great potential for growing at a very high rate issue Growth stocks. Purchasing shares in such firms might result in significant returns for investors through capital appreciation. A growing firm frequently produces an innovative product or service that increases its market share in the existing market. It may even launch a new business. The market likes to reward companies that can grow faster than the average. This usually results in substantial returns for shareholders. The faster they expand, the higher the potential profits. However, such companies are usually in their early stages. So, investing in the best growth stocks in India might be risky. In this article, we will learn about the best growth stocks in detail.

What are Growth Stocks?

Growth stocks refer to the stocks of companies that may grow at a higher pace compared to the market average. This indicates that the stock is growing quite faster, leading to a quick rise in earnings. These stocks do not pay dividends. In India, Many small-cap stocks are regarded as growth stocks. However, some larger companies may also be growth stocks.

Table of Content

  1. What are Growth Stocks?
  2. Top Growth Stocks List in 2024
  3. Top Trending Growth Stocks in India
  4. Why Invest in Growth Stocks?
  5. Investing in High Growth Stocks India via BlinkX
  6. How to Identify Growth Stocks
  7. Features of Growth Stocks
  8. Who Should Invest in Growth Stocks?
  9. What are the Alternate Options for Growth Stocks?
  10. Advantages of Investing in High Growth Stocks
  11. Risks of Investing in Growth Stocks

 

Top Growth Stocks List in 2024

Here is a list of the top trending, the highest growth stocks in 2024. 
 

Stock NameMarket Cap (in Cr)Share Price
Jindal Stainless SteelRs.57,623Rs.700.00
Polycab IndiaRs.79,359Rs.5282.80
Deepak NitriteRs.31,602Rs. 2317.90
Bajaj FinanceRs.4,45,426Rs.7,191.25 
Adani Green EnergyRs.3,00,688Rs.1,89835
Varun BeveragesRs.1,81,910Rs.1,400.00
KEI IndustriesRs.36,121Rs.4,001.10
Avanti FeedsRs.7,208Rs.528.75
JSW SteelRs.2,12,950Rs.870.80

Disclaimer: This list of Growth Stocks contains data updated as of 12 April 2024. However, it's important to conduct detailed research before making any investment decisions in these stocks.

Top Trending Growth Stocks in India

Let’s look at a quick overview of the best growth stocks in India.  

  1. Jindal Stainless Limited

    Jindal Saw Limited, which manufactures stainless steel, is regarded as the finest long-term investment opportunity. It manufactures slabs, blooms, hot rolled (HR) coils, cold roll (CR) coils, plates, coin blanks, precision strips, blade steel, and stainless steel piping. It is one of the most valuable growth stocks in India, making it one of the finest stocks to purchase for the long term.

  2. Polycab India

    Polycab India manufactures and sells wires, cables, and fast-moving electrical items. Under the POLYCAB brand, the firm offers electric fans, LED lights and luminaires, as well as switches and switch gears. It maintains a strong pre-tax margin of 12% and an impressive return on equity (ROE) of 19%. It is one of the finest stocks to purchase in 2024.

  3. Deepak Nitrite

    Deepak Nitrite Ltd is a chemical production firm. The company's sectors include Bulk Chemicals and Commodities (BCC), Fine and Speciality Chemicals (FSC), and Fluorescent Whitening Agents (FWA). It has a strong pre-tax margin of 14% and an extraordinary return on equity (ROE) of 20%, making it one of the finest companies to buy for long-term growth.

  4. Bajaj Finance Ltd

    Bajaj Finance, one of India's best-growing shares, reported an exceptional operating revenue of Rs. 48,019.96 crore over the last year, representing a 31% annual growth rate. The pre-tax margin is an excellent 38%, with a ROE of 21%. This makes it a good stock to buy in for if you have a long-term approach.

  5. Adani Green Energy

    Adani Green Energy achieved an amazing operational income of Rs. 8,967.00 Cr. during the last 12 months, representing a phenomenal yearly growth of 55%. Notably, the pre-tax margin is 18%, while the ROE is 16%.  This indicates an outstanding financial success in recent times.

  6. Varun Beverages

    Varun Beverages, one of India's high-growth stocks, produced an exceptional operating revenue of Rs. 15,589.13 crore in the previous 12 months, representing a 49% annual growth rate. Notably, the pre-tax margin is a noteworthy 15%, with an extraordinary return on equity (ROE) of 29%. 

  7. JSW Steel

    JSW Steel achieved a healthy operating revenue of Rs. 172,893.00 Cr. in the previous 12 months, representing a respectable 13% annual growth rate. While the ROE is reasonable at 6%, the pre-tax margin is currently at 3%. However, it has enough space for growth. 

Why Invest in Growth Stocks?

  • The growth stocks in India may offer better capital growth than any other sort of investment. These firms expand at a substantially quicker rate than the industry average. Thus, investing in fastest-growing stocks may boost the worth of your money in both the long and short term. Given optimum market conditions and long-term price increases, your money may double with further compounding. 
  • Investing in the most promising growth stocks may help you outpace inflation. Thus, according to financial experts, the genuine growth rate of your money is equal to the growth rate less inflation.
  • However, investors should always be conscious of their investing goals and risk level before buying any of today's growing shares in India. A thorough research of the market circumstances and stock performance would always assist them achieve financial independence.

Investing in High Growth Stocks India via BlinkX

You can invest in high-growth stocks on a trusted platform like BlinkX. Follow these steps to start investing.

  1. Open your Demat account. Fill out the account opening form and submit the documents. You can complete the process online.
  2. Once you get the login credentials, log in to your demat account.
  3. Now, search for the growth stock you want to invest in.
  4. Next, specify the number of shares you want to buy.
  5. Then, make the due payment. You can use any method like debit or credit card, UPI, etc.
  6. Once the payment is complete, you shall receive the shares in your Demat account in a while.

How to Identify Growth Stocks

Identifying a growth or value stock entails assessing a variety of financial metrics. Here are the most important ones you should look for.

  1. Earnings Growth:

    Growth stocks often provide strong profit growth. Look for steady sales and earnings growth across several quarters or years.

  2. Price-to-Earnings (P/E) ratio:

    Growth equities often have higher P/E ratios than value stocks. You will not generally find low PE high growth stocks. A high P/E ratio indicates that investors are ready to pay a premium for future growth opportunities.

  3. Volatility:

    Growth stocks can be more volatile, with sharp price changes. Value stocks are more steady and less prone to severe price movements.

  4. Market Capitalisation:

    Growth stocks are frequently issued by smaller firms with high growth potential, while value stocks are usually issued by large, well-established companies.

  5. Sector Analysis:

    Different sectors have distinct features. Growth stocks are common in the technology and healthcare sectors. However, value stocks can be found in utilities and consumer staples.

Features of Growth Stocks

The following are some key features of growth stocks.

  1. High earnings:

    Growth stocks often have strong earnings growth rates, which often outperform the sector average.

  2. Limited or no dividends:

    Companies reinvest earnings rather than handing out large dividends to shareholders.

  3. Innovation and Expansion:

    They are frequently at the forefront of innovation, entering new markets or sectors.

  4. High Valuations:

    Growth stocks may have higher price-to-earnings (P/E) ratios than the sector average, indicating that investors believe in their future potential.

Who Should Invest in Growth Stocks?

Investing in high-growth stocks is ideal for people who can take risks to obtain high returns on their investments. These stocks have the potential for large capital appreciation. Investors who value long-term wealth creation over immediate returns may also invest in growth stock investments. High-growth companies in India reinvest earnings rather than paying dividends. So, they are suitable for investors looking for wealth appreciation through capital gains.

In addition, people interested in business analysis and market trends can discover the finest growth stocks and their issuers. Understanding the elements that influence a company's development potential allows investors to make more educated selections in this volatile and often unexpected section of the stock market. As a result, for investors ready to weather market changes in exchange for the possibility of significant profits, growth stocks can be a smart addition to their investing portfolio.

What are the Alternate Options for Growth Stocks?

Growth stocks are extremely volatile and suitable only for those who can take high risks. Investors who do not want to invest in growth stocks might consider value stocks. Value stocks refer to shares of firms trading at a discount. Due to their undervaluation, value stocks often have high dividend payout ratios and are priced cheaper than other stock categories.

Advantages of Investing in High Growth Stocks

Here are the major advantages of investing in high-growth stocks.

  1. High Returns:

    Growth stocks have the potential to outperform other stocks in the market and generate significant gains.

  2. Competitive Advantage:

    These firms are frequently industry leaders with a significant competitive advantage.

  3. Long-term Growth:

    Investors can profit from consistent growth over time.

Risks of Investing in Growth Stocks

The following are some risks of investing in growth stocks.
 

  1. Volatility:

    Growth stocks may be more volatile than other securities, resulting in higher price fluctuations in the short term.

  2. No Dividends:

    Growth stocks may not be ideal for investors looking for regular income from dividends.

  3. Risk:

    High valuations may not always materialise, resulting in losses.

Disclaimer: The stocks mentioned above are based on current market trends and may fluctuate in value. Before investing in any of these stocks, it is important to conduct thorough research or consult with a financial analyst. Investors are advised to exercise caution and diligence when making investment choices.

Conclusion
A growth stock has a significant potential for long-term profit in the stock market, which can provide long-term gains. Research, along with fundamental and technical analysis, are critical when investing in growth stocks. Investing in growth stocks may be a profitable strategy for long-term investors. As a result, with the proper research and investment plan, investors may be able to profit from the rising share prices of India's high-growth stocks. Look for an online trading app that offers all the essential information regarding these growth stocks for a thorough analysis. With proper data, you will be able to analyse stocks better and select the right ones.

FAQs on Growth Stocks

Yes, the value of various financial ratios of growth stocks is usually higher than that of other stocks. This is because they focus more on earnings growth.

Yes, the price of growth stocks generally fluctuates. Investors' high expectations for these stocks lead to high volatility in prices.

While investing in growth stocks, you should consider various factors, such as earnings growth, revenue, market position, and industry trends.

Investing in growth stocks may be a good strategy if you want high returns. However, the risks are also higher. So, invest in a growth stock after proper research.

Growth stocks don’t usually offer dividends. However, some companies may choose to pay dividends to their shareholders if they have generated enough profits.

Open Demat Account

50years
*By signing up you agree to our terms & conditions

Related Blogs

Recent Blogs