Check out the companies with consistent ‘quarter-se-quarter-tak’ earnings growth

resr 5paisa Research Team 14th December 2022 - 11:19 am
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Don Bradman, Greg Chappel, Rohan Kanhai, Jack Hobbs, Younis Khan and so the list goes. Statisticians would debate no end on their picks of who was the most consistent batsman in the history of test cricket based on multiple parameters and metrics.

But if one would draw the same cricket analogy to the world of business, things become simpler. To be sure, one can look at multiple factors including cash flow generation, operating profit and returns parameters based on capital employed and so on to decide on a list of winners in the stock market.

However, one aspect is much simpler to track and gives a quick snapshot of the companies consistently following their quarter-se quarter-tak dictum. This refers to a set of companies that are growing their earnings without a break every quarter on a sequential basis.

We filtered companies big and small over the last four quarters to see which firms have been growing their profits sequentially quarter on quarter consistently, ignoring all the bad news across the world as also in India. Interestingly, this is a crowded club of around 106 stocks.

Large caps

Of these, just around a dozen are part of the large cap club with market valuation of over Rs 20,000 crore.

A third of these are metal and mining stocks, showing how they are benefiting from a commodity price uptrend.

These include JSW Steel, Tata Steel, Hindalco Industries and Steel Authority of India Ltd.

Other large caps in the club are IndusInd Bank, Indus Towers, L&T Technology, Persistent Systems, Tanla Platforms, Indian Energy Exchange, Oil India and Vinati Organics.

Mid caps

Lower down the order, there are around 16 firms in the mid-cap counter that meet the criteria.

This list includes UCO Bank, Bank of Maharashtra, Computer Age Management, IIFL Wealth Management and Home First Finance in the financial services sector.

In the technology sector, mid-cap stocks that meet the parameters are KPIT Technologies, Cyient, Mastek, and NIIT.

Other mid-caps in the list are Vardhman Textiles, Narayana Hrudayalaya, Jindal Stainless, VIP Industries, Jindal Stainless (Hisar), Rossari Biotech and Caplin Point.

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