100 fastest growing small companies in India

Looking for the next Infosys? Well, you might be in luck. This list of fastest growing small companies might just give you the next Infosys. It is hard to pick on a single stock and hand it to the investor. But the due diligence is already done by ET and narrowed it down to 100. It’s your turn to pick your horse.

Comparing any of these companies with Infosys might not be apt because there are only 5 Infotech companies. And the comparison is merely for the potential growth of the stock.

From a possible 5000 companies listed on BSE, ET narrowed it to an exciting 100.

Here is how :

1. Of the 5000 stocks listed on BSE, only 2/3rds are actively traded stocks.
2. Of the 3300 companies above only 2300 companies are very actively traded and have historical data.
3. 2 lists were generated. One based on revenues and one based on market cap.
4. All the companies which figured in the top 10% in both the lists (too big) and the bottom 50% in the both the lists (too small and better for VC’s) are knocked off.
5. That left 1000 companies. Which filtered in the following manner :

While filtering the companies based on growth parameters, we considered only those companies, which beat the average growth rates of all the 1,000 companies. Also, we eliminated those companies that have a debt-equity ratio of more than 2.0 in their latest financial year and relatively lower interest coverage ratio. After this process, we were left with almost 300 companies. At this stage, we decided to rank the companies based on the their 3-year growth rates, the ratio of operating cash flows (actual) to cash profit (reported) and 3-year average return on capital employed (RoCE). First we arrived at rankings based on individual parameters and then came out with a composite ranking (to be read as final ranking). While arriving at the composite ranking, we assigned 50% weightage to the quality parameter ?cash flow ratio and RoCE? and rest to the revenue and earnings growth. Finally, we weeded out companies, which reported losses in recent quarters or whose growth was too dramatic (source)

Quite an intriguing way to filter out companies and arrive at a dynamic list.

These are the 100 companies which came through ETIG’s filters :

Rank	Company Name	Industry	Total Income	Op. Profit	Net Profit	Market cap	CMP(Rs)
1	Sulzer India	Capital Goods	196.3	55.77	34.12	300	895
2	Oil Country Tubular	Steel	432.71	101.05	67.7	384	83
3	Tata Sponge Iron	Steel	635.91	172.42	107.59	361	250
4	Zydus Wellness	FMCG	245.25	41.32	27.02	98	174
5	Liberty Phosphate	Fertilisers	336.95	33.34	18.16	35	24
6	Rain Commodities	Cement & Cement Products	1152.83	224.25	104.61	1276	172
7	Engineers India	Capital Goods	1903.17	367.74	388.13	6034	1157
8	India Infoline	Finance	590.61	173.28	109.14	4036	141
9	CRISIL	Miscellaneous	442.22	176.6	148.75	2795	4063
10	Praj Industries	Capital Goods	777.3	140.08	130.34	1876	97
11	Tide Water Oil	Oil & Gas	572.59	55.61	35.48	434	4840
12	KS Oils	Solvent Extraction	3396.8	374.44	182.68	2162	68
13	Relaxo Footwears	Leather & Leather Products	441.11	52.3	20.36	114	154
14	Vinati Organics	Pharmaceuticals	207.16	38.88	29.54	197	197
15	Bajaj Electricals	Consumer Durables	1823.71	189.81	95.47	1089	714
16	Nava Bharat Ventures	Diversified	1361.37	525.43	464.57	2879	367
17	Orient Paper & Industries	Diversified	1520.35	340.76	184.38	1047	52
18	IL&FS Investment Managers	Finance	99.17	54.93	36.39	950	49
19	Hawkins Cooker	Consumer Durables	253.69	35.03	22	233	458
20	Nagarjuna Agrichem	Pesticides & Agrochemicals	609.39	112.92	51.96	238	161
21	Diamond Power Infrastructure Ltd	Cables	695.45	99.56	62.49	461	200
22	TRF	Capital Goods	590.43	74.47	48.2	535	496
23	Fem Care Pharma	FMCG	118.47	10.92	9.46	253	701
24	National Peroxide	Chemicals	126.85	37.16	17.33	117	210
25	Sagar Cements	Cement & Cement Products	380.45	82.94	23.52	318	188
26	Divi’s Laboratories	Pharmaceuticals	1157.35	405.25	332.89	6866	574
27	VST Tillers Tractors	Automobiles	299.22	51.8	34.78	225	406
28	Jindal Drilling & Industries	Oil & Gas	1002.85	85.94	49.07	1396	585
29	Texmaco	Capital Goods	799.7	126.33	73.86	1577	133
30	Supreme Industries	Plastic Products	1667.19	237.94	97.38	799	324
31	Dhanuka Agritech	Pesticides & Agrochemicals	334.07	54.37	23.53	161	197
32	Bharati Shipyard	Shipping	1126.92	281.13	137.6	562	194
33	WPIL	Capital Goods	165.81	17.43	8.69	67	93
34	HeidelbergCement India	Cement & Cement Products	1003.78	163.12	157.89	1003	43
35	Havells India	Capital Goods	2238.08	218.45	153.75	1846	322
36	ICSA India	Infotech	1176.83	266.85	161.33	955	203
37	Tilaknagar Industries	Breweries & Distilleries	248.74	45.98	21.11	131	66
38	Ratnamani Metals & Tubes	Steel	896.57	142.96	63.97	467	102
39	Gujarat Fluorochemicals	Chemicals	1101.03	541.16	347.09	1762	154
40	Nitta Gelatin India	Chemicals	189.92	33.82	18.27	110	147
41	Shilpa Medicare	Pharmaceuticals	156.43	38.97	16.43	350	141
42	TTK Prestige	Consumer Durables	414.17	42.18	24.67	246	265
43	Amara Raja Batteries	Dry Cells	1331.03	200.26	108.13	1156	139
44	Confidence Petroleum India	LPG Bottling	245.31	27.54	17.98	214	8
45	Hindustan Dorr-Oliver	Capital Goods	616.66	66.33	36.88	504	133
46	Mcnally Bharat Engineering Co.	Capital Goods	1235.96	104.82	35.86	549	175
47	Best & Crompton Engg.Ltd.	Capital Goods	48.64	-39.26	-43.97	217	17
48	KPIT Cummins Infosystems	Infotech	560.02	124.62	66.46	592	78
49	Anjani Portland Cements	Cement & Cement Products	132.62	36.59	16.95	69	35
50	Gujarat Gas Company	Oil & Gas	1327.75	235.05	154.28	2584	201
51	Bayer Cropscience	Pesticides & Agrochemicals	1592.32	190.82	115.72	1464	393
52	KCP	Cement & Cement Products	361.66	100.27	66.34	354	250
53	J K Lakshmi Cement	Cement & Cement Products	1315.35	365.66	265.49	838	134
54	JK Cements	Cement & Cement Products	1591.22	380.83	176.43	899	134
55	Opto Circuits (India)	Consumer Durables	444.81	165.31	138.49	3156	204
56	Micro Technologies (India)	Infotech	232.37	100.15	58.89	159	147
57	Gujarat Reclaim & Rubber Prod	Rubber & Rubber Products	132.26	20.86	12.86	70	560
58	Geodesic	Infotech	571.66	251.67	197.34	1274	126
59	Honeywell Automation India	Consumer Durables	1075.74	175.33	114.84	1501	1699
60	Kesoram Industries	Diversified	4236.93	662.77	358.4	1643	373
61	JMC Projects (India)	Construction	1296.45	102.37	35.34	385	175
62	Orient Abrasives	Abrasives	302.3	66.39	33.28	243	21
63	TIL	Capital Goods	828.44	78.14	32.36	281	283
64	OCL India	Cement & Cement Products	1272.9	314.67	134.97	721	126
65	Gujarat Mineral Development Corpn.	Mining & Minerals	1031.75	442.89	244.1	3547	109
66	Ushdev International	Trading	1394.2	61.79	21.84	156	149
67	Sterlite Technologies	Cables	2326.23	253.16	126.83	1754	280
68	PSL	Steel	3524.37	237.42	82.44	808	163
69	UB Engineering	Capital Goods	457.03	35.68	21.9	141	79
70	Temptation Foods	FMCG	978.66	80.35	54.78	104	38
71	Panama Petrochem	Chemicals	320.06	33.95	10.21	61	119
72	Techno Electric & Engineering Company	Construction	534.76	58.27	73.6	885	143
73	Deccan Cements	Cement & Cement Products	231.51	74.69	33.86	172	238
74	Core Projects And Technologies	Infotech	378.11	106.78	84.66	1690	189
75	Aegis Logistics	Transport & Logistics	328.14	45.29	31.8	287	139
76	GEE	Electrodes	126.14	12.54	6.4	124	60
77	Nilkamal	Plastic Products	878.33	87.97	11.66	179	141
78	Torrent Cables	Pharmaceuticals	177.95	16.17	14.21	112	160
79	Maharashtra Elecktrosmelt	Ferro Alloys	343.86	43.68	40.44	1136	423
80	Jyoti	Capital Goods	257.74	22.59	4.66	56	47
81	Hitachi Home & Life Solutions	Consumer Durables	498.87	31.78	23.89	218	97
82	Glaxosmithkline Consumers Healthcare	FMCG	1863.15	313.33	224.69	4734	1182
83	Deccan Chronicle Holdings	Entertainment & Media	881.84	279.89	156.11	2873	143
84	Flawless Diamonds (I)	Diamonds & Jewellery	566.34	23.37	12.91	57	35
85	HBL Power Systems	Dry Cells	1193.11	180.97	82.84	795	312
86	Aditya Birla Chemicals (India)	Chemicals	218.54	73.95	48.61	176	73
87	Tinplate Company of India	Metals	754.25	139.77	53.27	336	54
88	Sanghvi Movers	Capital Goods	366.48	279.12	101.45	777	170
89	Venky’s (I)	Aquaculture & Hatcheries	602.59	44.71	21.99	139	168
90	Emami	FMCG	681.12	115.43	58.19	3132	430
91	Kirloskar Electric Company	Capital Goods	852.98	64.97	26.83	279	76
92	Chettinad Cements	Cement & Cement Products	1227.06	499.47	-12.61	1218	408
93	Sree Rayalaseema Alkali & Allied Chemicals	Chemicals	685.52	115.59	42.88	98	15
94	Jyoti Structures	Capital Goods	1814.54	205.88	81.57	1257	153
95	Gillette India	FMCG	691.52	158.41	113.14	3328	1087
96	GEI Industrial Systems	Capital Goods	213.65	29.63	10.41	99	69
97	Venus Remedies	Pharmaceuticals	276.21	63.35	42.27	222	225
98	Phoenix Mills	Real Estate	143.9	65.42	82.8	2509	165
99	Walchandnagar Industries	Capital Goods	626.19	53.48	26.84	835	210
100	Shiv-Vani Oil & Gas Exploration Services	Oil & Gas	775.98	266.3	93.9	1509	345

The market price of the stock is taken on Oct 8, 2009. (Source)

If you look at the list, it is dominated by Capital Goods. 18 companies on the list are from Capital Goods sector. Cement sector with 10 companies is the next dominant sector. Does that tell you something? India’s infrastructure spend is on the rise and hence the rise of smaller companies. Some part of your portfolio should be there.

There are 6 companies from each of these sectors – Chemical, Consumer Durables and FMCG. Pharma and Infotech, surprisingly has only 5 companies on the list.

My favorite stocks in the list are – India Infoline, IL&FS Investment manager, Deccan Chronicle (not because of Deccan Chargers), Geodesic and CRISIL (credit rating company). No particular reason. What’s yours?