Market dips are one of the best times to accumulate fundamentally strong businesses. These companies are generally large caps and have robust financials and quality management which helps them to sustain broader-market sell-off, better than their smaller peers.
However, the bigger question is how to select consistently growing blue chips that could provide shelter to investors’ portfolios during rainy days. One of the best ways to screen such companies is to look at the pace at which they are increasing their sales, or broadly classified as revenue. One or two-year revenue growth could be misleading on account of a probable significant change in external variables, therefore a 5-year lookback period is the least investors should study. On this note here are the top 3 companies from the bluechip index that have grown their revenue at the highest pace over the last 5 years.
Bajaj Finance Limited
Bajaj Finance Ltd (NS:) is one of the most prominent names in the consumer finance business. The company has a market capitalization of INR 4,28,884 crores and is primarily engaged in lending and allied services. As the consumption growth story in India is intact and has been strongly growing at a higher pace, Bajaj Finance has been able to capitalize on this opportunity quite well so far.
The company clocked a highest-ever revenue of INR 31,640.41 crores in FY22 and has been successfully growing its revenue at a 5-year CAGR of 25.93%. That’s a massive rate of growth, especially considering the 5-year consistency. During these 5 years, the company has also grown its market share from 14.4% to 22.9%.
Bajaj Finserv Limited
The second company on the list is also from Bajaj stable – Bajaj Finserv Ltd (NS:) which is a diversified financial services company offering wealth management, insurance, asset management, and other related services. The company has a market capitalization of INR 2,60,545 crores.
The same story continues with Bajaj Finserv, as it posted a record revenue of INR 68,438.98 crores in FY22, which was 12.95% up from FY21 revenue of INR 60,591.57 crores. The revenue has surged at a CAGR of 22.8% over the last 5 years. Mutual funds have consistently been buying the company’s shares and their stake has gone up from 2.97% in March 2021 to 4.42% in June 2022.
UPL Ltd (NS:) is the third top-most company in terms of revenue growth. It has a market capitalization of INR 49,299 crores and is a provider of crop protection solutions and is engaged in the business of agrochemicals, industrial chemicals, chemical intermediates, and specialty chemicals.
The company has grown its net revenue at a CAGR of 22.69% over the last five years and just like others on the list, FY22 was the best year for the company so far with a record-high revenue of INR 46,655 crores, compared to INR 38,994 crores a year ago. In fact, the TTM revenue is even higher at INR 49,020 crores. During the last 5 years, the market share of UPL also rose from 17.6% to 24.6%.