A company’s net profit earned will go to the shareholders of the company. But, still, not the whole profit goes to the shareholders. Some portion remains undistributed, and these are known as retained earnings. A company’s retained earnings will depend on the opportunities of investment, economic outlooks, business and structure of ownership. These retained earnings often aid in funding development programs and finance researches.
Profits are the backbone of any company, and a rupee worth earning inside the company is considered to be more valuable than a rupee worth earning in the shareholder’s hands. Taking the data from 2013-14 to five years after that, the earnings to market value ratio was calculated. The ratio was taken among companies having market-cap which is above 500 crores. If the investors aim to create more wealth, then they will have to assess the profitability and growth in the coming years to derive a conclusion. Here are the top 7 companies that promise significant growth in stock prices in the coming years:
• Havells India
• Relaxo Footwears
• Britannia Industries
• Solar Industries
• Titan Company
• VIP Industries
• Grindwell Norton
Take note of these 7 companies as they are expected to grab the top 7 places in the coming years!
