Growth stocks are stocks which are expected to grow at a faster rate than the industry average or the average rate of the industry in the given country
Faster growth means that the revenues and profits of the company are expected to grow faster than the industry average
These stocks generally do not pay dividends.
This is because the issuers of growth stocks are usually companies that want to reinvest any earnings they accrue in order to accelerate growth in the short term
When investors invest in growth stocks, they anticipate that they will earn money through capital gains when they eventually sell their shares in the future.
1. Rail Vikas Nigam Limited.
t is a PSU company involved in the implementation of many rail infrastructure projects. The company has a PE ratio of 6.36, and a Debt to Equity ratio of 1.02. In terms of profitability
the company has a Return on Equity of 17.26%, and a Net Profit Margin of 5.99%.
PROS – Stock is trading at 1.07 times its book value – Stock is providing a good dividend yield of 5.06%. – Company is expected to give good quarter – Company has been maintaining a healthy dividend payout of 31.37%
CONS: to know more click below