Investing in stocks can be a highly rewarding and game-changing strategy to build long-term wealth. If you aim for long-term growth you must build a strategy around the best-growing stocks. And this means staying attuned to market trends, exercising patience, and being prepared to take calculated risks.

In this blog, let's take a look at growth stocks, some of their examples, and why you should invest in them.

Growth stocks are companies that consistently grow at a rate much higher than the market average. These stocks are listed on the NSE and demonstrate faster earnings growth than the typical market stock. Unlike dividend-paying stocks, growth stocks reinvest their profits back into the business to grow further.

Here are the top three growth stocks that you can invest in:

Jeena Sikho Lifecare Ltd

Jeena Sikho Lifecare is a leading Ayurvedic healthcare provider in India that offers a wide range of products and services. The company operates through a network of 119 facilities. Through its Shuddhi Ayurveda Panchakarma Hospitals, it provides treatments for various health conditions like cancer, diabetes, and joint pain, using a blend of Ayurveda, Allopathy, Homeopathy, and Naturopathy.

The company retails Ayurvedic products under the "Shuddhi" brand. In FY23, the company generated 69% of its revenue from medicine sales, 19% from Panchakarma services, and 12% from government panel sales.

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Its main focus is to promote holistic healthcare as the company continues to make Ayurveda accessible and impactful for people in India and beyond.

The company is almost debt-free. Over the last five years, it demonstrated a profit growth with a 62.4% CAGR and maintained a strong return on equity of 41.4%

Indo Tech Transformers Ltd

It is a leading manufacturer of power and serves renewable energy, steel, and utilities sectors. Its top 10 clients are NTPC, Adani, and Siemens.

Indo Tech uses the "PROLEC" brand under a transitional royalty agreement. Indo Tech is focused on growth and operational excellence to meet the increasing demand for transformers across industries.

They have almost zero debt. They have delivered a profit growth of 49.9% CAGR over the last 5 years.

Computer Age Management Services Ltd (CAMS)

CAMS is a leading mutual funds transfer agency in India and provides technology-driven services for investors, distributors, and asset management companies (AMCs).

CAMS offers KYC services, payment solutions, insurance repositories, and data-driven analytics to clients across the BFSI sector.

With marquee shareholders like Warburg Pincus, LIC, and HDFC Bank, CAMS leads in the financial services sector with cutting-edge solutions.

The company is debt-free and has a strong return on equity of 43.4%. It has maintained a healthy dividend payout ratio of 66.9% which reflects its good financial performance.

Benefits of Investing Growth Stocks

Now that you understand what growth stocks are, let’s find out the benefits of investing in them:

High Capital Appreciation

Growth stocks in India provide a higher potential for capital growth compared to other stock types.

Rapid Business Expansion

These companies outperform their industry peers and grow at a pace much faster than the average.

Wealth Creation

Investing in top growth stocks can help multiply your wealth over both short and long-term investment horizons.

Beating Inflation

Growth stocks provide returns that exceed the inflation rate and ensure real growth in the value of your investments.

Compounding Returns

In favourable market conditions, investing in high-growth stocks can allow your money to grow exponentially.

Final Thoughts

Growth stocks can be an invaluable addition to any investment portfolio that also provide diversification as well as long-term returns. Whether you choose to invest directly in individual stocks, via ETFs, or through mutual funds, make sure to conduct thorough research and align your investments with your financial goals and risk tolerance.

With careful planning, these stocks can help you achieve your wealth creation objectives over time.

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