Best Growth Stocks to Buy in India 2024 for Long-Term Investing (2024)

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Investing in growth stocks can be a highly rewarding strategy for long-term investors seeking to capitalise on companies with the potential for substantial financial performance improvement over time. As we look towards 2024, the Indian stock market presents several compelling opportunities in various sectors poised for significant growth. These stocks are typically from companies that reinvest their earnings into expansion, innovation, or acquisitions rather than paying out dividends, making them attractive to those who believe in the company’s future prospects.

For investors in India considering long-term investments for 2024, focusing on growth stocks requires a strategy that combines a keen eye for market dynamics with patience and a tolerance for risk. By investing in these stocks, individuals can effectively bet on the future direction of innovative and expanding industries within one of the world’s most dynamic economies. In this article, we will explore some of the best growth stocks in India for 2024, how to identify them for your portfolio, risks associated with growth stocks, and more.

What are Growth Stocks?

Growth stocks exhibit a growth rate that is much higher than the market’s average growth rate. It shows that the stock grows faster than the market’s average stock, which causes earnings to increase faster. These stocks don’t pay dividends.

Many small-cap stocks are considered fast high growing stocks in India. However, some larger companies may also be growth companies.

Now that we know what is a growth stock, let’s look at some of the top companies that have experienced share growth.

Trending Growth Stocks List in 2024

Here’s a list of best high growth stocks India for 2024. These are the best share to buy for growth and the best growth stocks to buy now in India, potentially:

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the growth stocks list in India is from 25th April 2024. However, for real-time updates on growing stock prices and market trends, visit the smallcase stocks collection today!

Why Invest in Growth Stocks?

The fastest growing stocks in India today may provide you higher capital growth as compared to any other type of stock. These businesses grow at a pace that is much faster than the industry average. Thus, investing in growth companies can increase the value of your money over the long and short terms. Given optimal market circ*mstances and price rise over the long run, your money may even double with further compounding.

Your money may outperform inflation by investing in the best growth stocks India. Thus, according to financial experts, the true growth of your money is the growth rate minus inflation.

However, investors should always be mindful about their investment goals and risk appetite before purchasing any high growth stocks India, thorough research of the market conditions and stock performance would always help them gain the financial freedom.

Top Trending Growth Stocks in India

Here is an overview of the best-growing stocks in India. These are some of the fastest-growing stocks in India.

JK Paper Ltd
JK Paper Ltd is a leading paper manufacturing company in India, specializing in a wide range of paper products including office paper, coated paper, and packaging board. With state-of-the-art manufacturing facilities, the company caters to both domestic and international markets, focusing on quality and sustainability. JK Paper is known for its commitment to environmental standards, employing eco-friendly practices in its production processes.

Allcargo Logistics Ltd
Allcargo Logistics Ltd is one of India’s largest integrated logistics firms, providing multimodal transport solutions encompassing container freight stations, inland container depots, warehousing, and contract logistics. The company has a global presence, offering extensive services that facilitate international trade, and is pivotal in enhancing India’s logistics infrastructure.

Oil India Ltd
Oil India Ltd is a premier Indian public sector company known for its role in the hydrocarbon exploration and production sector. It operates both in India and abroad, providing a significant portion of India’s crude oil and natural gas. The company is involved in all facets of the hydrocarbons value chain, including exploration, production, and transportation of crude oil and natural gas.

Caplin Point Laboratories Ltd
Caplin Point Laboratories Ltd is a fast-growing pharmaceutical company that develops, manufactures, and markets a wide array of generic medicines primarily for emerging markets in Latin America and Africa. Known for its high-quality products and innovative approach, Caplin Point has carved a niche in providing affordable healthcare solutions.

Godawari Power and Ispat Ltd
Godawari Power and Ispat Ltd is a prominent player in the Indian steel industry, involved in the manufacture of sponge iron, billets, ferro alloys, captive power, wires rods (through subsidiary), iron ore pellets, and steel wires. Positioned as an integrated steel producer, the company leverages state-of-the-art technology to maintain efficiency and environmental standards.

Marksans Pharma Ltd
Marksans Pharma Ltd specializes in the formulation and manufacturing of generic pharmaceutical products. The company is known for its innovation in developing and marketing a wide range of specialized products that address the needs of patients globally. Marksans Pharma has a significant presence in highly regulated markets such as the USA and Europe.

Chambal Fertilisers and Chemicals Ltd
Chambal Fertilisers and Chemicals Ltd is one of India’s leading fertilizer producers, known for its contribution to India’s agricultural sector. The company manufactures a wide range of fertilizers, primarily urea, ensuring high agricultural productivity. It is also involved in other agri-input services, enhancing the value chain in agriculture.

Indraprastha Gas Ltd
Indraprastha Gas Ltd is the main supplier of compressed natural gas (CNG) and piped natural gas (PNG) in Delhi and neighboring areas. As a leader in clean energy solutions, IGL plays a critical role in reducing vehicular and domestic pollution. The company’s infrastructure development for gas distribution is pivotal for urban energy requirements.

GMM Pfaudler Ltd
GMM Pfaudler Ltd is a leading supplier of engineered equipment and systems for critical applications in the global chemical and pharmaceutical industries. The company manufactures glass-lined equipment, filters, dryers, agitators, mixers, and other engineered equipment, catering to clients worldwide with its high-quality and reliable solutions.

CMS Info Systems Ltd
CMS Info Systems Ltd is a leading provider of cash management services and technology solutions in India. The company plays a crucial role in managing ATM cash replenishment services, cash-in-transit, and cash processing. Leveraging advanced technology, CMS Info Systems offers secure and efficient solutions that support the banking and retail sectors extensively.

Investing in High Growth Stocks India via smallcase

You can also invest in a basket of high growth stocks in India via smallcase. Simply go to smallcase.com or the smallcase app, and log in via your phone number. Then, go to ‘Discover‘ and then click on ‘All smallcases‘. There you can filter the smallcases based on ‘investment strategy’ by selecting ‘growth’. You’ll find an array of stock portfolios that are based on the growth investing strategy. Thus, just pick the best growing stocks in India that fit your investment criterion.

Make sure that you do your diligent research before picking the best growth stocks for the next 10 years in India, keeping in mind your long-term investment goals and risk appetite.

How to Invest in Growth Stocks?

Top growing stocks in India can be valuable to any investment portfolio, providing diversification and potential returns.

One way to invest in growth shares in India is through traditional stock market investing. Therefore, this involves researching individual companies and buying shares of stock directly.

Another way to invest is via exchange-traded funds (ETFs). Investors can choose from various growth-oriented ETFs, which provide exposure to a diversified portfolio of growth companies.

Mutual funds are another option for investing in growth shares. These are professionally managed investment portfolios that pool money from multiple investors to buy a diversified portfolio of stocks. Like ETFs, there are a variety of mutual funds that focus on growth investing.

How to Invest in Growth Stocks?

Top growing stocks in India can be valuable to any investment portfolio, providing diversification and potential returns.

One way to invest in growth shares in India is through traditional stock market investing. Therefore, this involves researching individual companies and buying shares of stock directly.

Another way to invest is via exchange-traded funds (ETFs). Investors can choose from various growth-oriented ETFs, which provide exposure to a diversified portfolio of growth companies.

Mutual funds are another option for investing in growth shares. These are professionally managed investment portfolios that pool money from multiple investors to buy a diversified portfolio of stocks. Like ETFs, there are a variety of mutual funds that focus on growth investing.

How to Identify Growth Shares?

You can easily identify the best future stocks in the growth industry by following these factors.

• High Growth Potential: Look for companies that have a history of high revenue and earnings growth.
• Strong Market Position: Identify companies that have a dominant position in their industry, with a strong competitive advantage.
• Innovative Products/Services: Look for companies that have a pipeline of innovative products or services that have the potential to disrupt their industry.
• Experienced Management Team: Companies with experienced and competent management teams are better positioned to navigate market challenges and drive growth.
• Large and Expanding Market Opportunity: Identify the best growth stocks for the next 10 years in India by researching the companies that are operating in markets with significant potential for growth.

What are the Various Features of Fast Growing Shares?

Some of the features of the best stocks in the industry have been listed below:

• Risky Investment: Growth stocks have a higher potential for future returns, but they also carry a higher risk than other investing categories like value stocks or corporate bonds. The primary threat is that the actual or anticipated growth won’t carry over into the future.
• High P/E Ratio: Any sector or industry may have growth stocks, which often trade at a high price-to-earnings (P/E) ratio. Thus, they might not be making money right now, but they might in the future.

P/E ratio = market value per share / earnings per share

• High PEG Ratio: Price earnings to growth ratio is a ratio that is taken into consideration to evaluate a growth stock. The key benefit of PEG ratio over P/E ratio is that it accounts for the annual increase in the overall profits per share of a company. A high PEG ratio suggests that a company has performed very well.
• High RoE: Companies in India that raise money through high growth stocks India often have a record annual return on total equity. Higher the RoE, more valued growth stocks.

Who Should Invest in Growth Stocks?

Investing in high growth stocks India is tailored for individuals who are inclined towards risk and seek substantial returns on their overall investment. These stocks are characterized by their potential for significant capital appreciation, making them suitable for those comfortable with volatility in pursuit of higher rewards.

Ideal candidates for growth stock investment are investors who prioritize long-term wealth accumulation over immediate income generation. Since high growth stocks India often reinvest profits into the company rather than distributing dividends, they align with the objectives of individuals seeking wealth appreciation through capital gains.

Moreover, those with a keen interest in company analysis and market trends can identify the best growth stocks and their issuing companies. Understanding the factors that contribute to a company’s growth potential empowers investors to make informed decisions in this dynamic and often unpredictable segment of the stock market. Therefore, for individuals willing to weather market fluctuations in exchange for the potential of substantial returns, growth stocks can be a strategic addition to their investment portfolio.

What are the Alternate Options for Growth Stocks?

Growth stocks are highly volatile and are only meant for people with a high-risk appetite. Investors who don’t see growth stocks fit in their portfolio can look at value stocks.

Shares of companies that are trading at a discount are known as value stocks. Value stocks often have strong dividend payout ratios and the price of the stocks is typically lower compared to other stock categories since they are undervalued.

What are the Risks of Investing in Growth Stocks?

Let’s have a look at the potential risks of future stocks to invest in the growth industry.

• Volatility and risk of price fluctuations due to market conditions and changes in investor sentiment
• Dependence on market conditions that can affect the company’s growth potential
• Possibility of market saturation as competition increases and growth slows down
• Risk of overvaluation, where the company’s stock price becomes detached from its fundamentals

What are the Advantages of Investing in High Growth Stocks?

Here is a list of advantages of investing in the best future stocks of the growth industry.

• Potential for high returns on investment as a result of the company’s strong growth trajectory
• Diversification of portfolio with exposure to different industries and sectors
• Protection against inflation as the company’s earnings grow over time
• Long-term growth potential for sustained returns

How to Build a Growth-Oriented Investment Portfolio?

• Fundamental analysis to evaluate the company’s financial health, management, and competitive advantage.
• Technical analysis to identify trends and patterns in the company’s stock price
• Growth investing strategies that focus on high-growth companies with a long-term perspective
• Value investing strategies that focus on undervalued companies with strong fundamentals

However, investors must do their own research and/or consult their financial advisor before investing.

To Wrap It Up…

In conclusion, investing in growth stocks can be a lucrative strategy for investors looking to maximize their returns over the long term. Therefore, with the right research and strategy, investors can potentially capitalize on the growing share price of these high growth stocks in India.

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