Selecting the right stock from a sea of options is no small feat. That's where the power of MarketSmith India's ratings come into play. The ratings compile key factors like earnings, market capitalization, sponsorship, relative strength, as well as price and volume traits, and industry group performance. These elements together serve as a comprehensive report card for each stock.

These ratings aren't just time-savers; they're decision-makers. They allow you to make choices based on facts and proven metrics, courtesy of the CAN SLIM system. This system gives you a straightforward guide to what you should prioritize.

Keep in mind; the NSE and BSE have thousands of trading stocks. Your mission is to zero in on the top-performing stocks that can yield big returns.

We simplify this for you. Every week, we sift through these ratings objectively to bring you stocks with high growth potential.

How We Pick High-Potential Stocks for this Watchlist

The selection process involves a set of specific criteria. These include:

• Minimum Market Capitalization of INR 3,000 Cr. And Average Rupee Volume of INR 15 Cr.
• Stocks must be within 15% of its 52-week high, Master Score of >=60 and Price Strength of >=69
• An increase in institutional holdings over the previous two quarters and A/D Rating of at least ‘B’
• A rising Master Score, Price Strength, and Group Rank as compared to 4 weeks ago
• A Return on Equity (ROE) greater than 10%
• Stock must be either FORMING a Base or within the Buy Range of the most recent Base breakout

Whether you're a growth stock investor, a positional trader, or a swing trader, this column aims to point you towards stocks with high growth potential. However, don't just take our word for it. Always conduct your own thorough research and cross-check your stock picks against a Buying and Selling checklist.

Top Growth Stocks to Watch Now

• Blue Star )
• Welspun Corp
• Coromandel International
• Cholamandalam Investment and Finance Company
• Shriram Finance
Analysis of Top Growth Stocks

Blue Star Stock

Blue Star has an operating revenue of Rs. 11,276.46 Cr. on a trailing 12-month basis. An annual revenue growth of 21% is outstanding, Pre-tax margin of 6% is okay, ROE of 16% is good. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. The stock from a technical standpoint is comfortably placed above its key moving averages, around 6% and 14% from 50DMA and 200DMA. It is currently FORMING a base in its weekly chart and is trading around 14% away from the crucial pivot point.

From an O'Neil Methodology perspective, the stock has an EPS Rank of 89 which is a GOOD score indicating consistency in earnings, a RS Rating of 87 which is GOOD indicating the outperformance as compared to other stocks, Buyer Demand at B+ which is evident from recent demand for the stock, Group Rank of 11 indicates it belongs to a strong industry group of Bldg-A/C & Heating Prds and a Master Score of B is close to being the best.

Welspun Corp Stock

Welspun Corp has an operating revenue of Rs. 14,513.74 Cr. on a trailing 12-month basis. An annual revenue growth of 78% is outstanding, Pre-tax margin of 7% is okay, ROE of 20% is exceptional. The company has a reasonable debt to equity of 29%, which signals a healthy balance sheet. The stock from a technical standpoint is trading close to its 50DMA and comfortably placed above its 200DMA, around 14% above 200DMA. It needs to take support around the 50 DMA level to continue further upside move. It is currently FORMING a base in its weekly chart and is trading around 4% away from the crucial pivot point.

From an O'Neil Methodology perspective, the stock has an EPS Rank of 59 which is a POOR score indicating inconsistency in earnings, a RS Rating of 86 which is GOOD indicating the outperformance as compared to other stocks, Buyer Demand at B+ which is evident from recent demand for the stock, Group Rank of 34 indicates it belongs to a strong industry group of Steel-Producers and a Master Score of A is the best.

Coromandel International Stock

Coromandel International has an operating revenue of Rs. 23,009.57 Cr. on a trailing 12-month basis. An annual revenue de-growth of -26% needs improvement, Pre-tax margin of 10% is healthy, ROE of 17% is exceptional. The company is debt free and has a strong balance sheet enabling it to report stable earnings growth across business cycles. The stock from a technical standpoint is trading below to its 50DMA and close to its 200DMA. It needs to take out the 50DMA levels and stay above it to make any further meaningful move. It is currently FORMING a base in its weekly chart and is trading around 8% away from the crucial pivot point.

From an O'Neil Methodology perspective, the stock has an EPS Rank of 72 which is a FAIR score but needs to improve its earnings, a RS Rating of 84 which is GOOD indicating the outperformance as compared to other stocks, Buyer Demand at A- which is evident from recent demand for the stock, Group Rank of 75 indicates it belongs to a poor industry group of Chemicals-Agricultural and a Master Score of B is close to being the best.

Cholamandalam Investment and Finance Company Stock

Cholamandalam Investment and Finance Company has an operating revenue of Rs. 24,227.97 Cr. on a trailing 12-month basis. An annual revenue growth of 49% is outstanding, Pre-tax margin of 24% is great, ROE of 17% is exceptional. The company has a high debt to equity of 153%, which can be a reason to worry. The stock from a technical standpoint is comfortably placed above its key moving averages, around 11% and 7% from 50DMA and 200DMA. It is currently FORMING a base in its weekly chart and is trading around 12% away from the crucial pivot point.

From an O'Neil Methodology perspective, the stock has an EPS Rank of 90 which is a GREAT score indicating consistency in earnings, a RS Rating of 82 which is GOOD indicating the outperformance as compared to other stocks, Buyer Demand at A+ which is evident from recent demand for the stock, Group Rank of 18 indicates it belongs to a strong industry group of Finance-Consumer Loans and a Master Score of B is close to being the best.

Shriram Finance Stock

Shriram Finance has an operating revenue of Rs. 40,297.13 Cr. on a trailing 12-month basis. An annual revenue growth of 19% is outstanding, Pre-tax margin of 27% is great, ROE of 15% is good. The company has a high debt to equity of 195%, which can be a reason to worry.The stock from a technical standpoint is comfortably placed above its key moving averages, around 12% and 6% from 50DMA and 200DMA. It is currently FORMING a base in its weekly chart and is trading around 3% away from the crucial pivot point.

From an O'Neil Methodology perspective, the stock has an EPS Rank of 88 which is a GOOD score indicating consistency in earnings, a RS Rating of 80 which is GOOD indicating the outperformance as compared to other stocks, Buyer Demand at A which is evident from recent demand for the stock, Group Rank of 18 indicates it belongs to a strong industry group of Finance-Consumer Loans and a Master Score of A is the best.
For quicker updates join our WhatsApp channel - MarketSmith India WhatsApp Channel
What do you think? Please email us any questions or comments.
Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.