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Methodology: How We Did It?

The exercise for putting together the fastest growing companies list got underway with unaudited data for financial years 2015-16, 2014-15, 2013-14, 2012-13 and 2011-12 available with Ace Equity Database on standalone companies, and as per ACE Equity’s database and classifications

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The exercise for putting together the fastest growing companies list got underway with unaudited data for financial years 2015-16, 2014-15, 2013-14, 2012-13 and 2011-12 available with Ace Equity Database on standalone companies, and as per ACE Equity’s database and classifications.

We began with a universe of 2864 listed companies, keeping out banks and financial companies. We also excluded traded companies, while banks and financial institutions were kept out from the manufacturing list as they come under a separate category.

We then proceeded to divide the companies into five categories based on their net sales value for 2015-16 for a more accurate comparison. The super heavyweight category had net sales of Rs 50,000 crore and above. It was followed by heavyweights with net sales between Rs 10,000 crore and Rs 49,999 crore. The middleweights comprised companies with net sales between Rs 5,000 crore and Rs 9,999 crore, while the welterweights had net sales between Rs 1,000 crore and Rs 4,999 crore. The featherweights formed the last category, with companies with net sales between Rs 250 crore and Rs 999 crore. All the companies with net sales below Rs 250 crore were not considered in the final rankings.

We only included companies for which net sales data was available for the last five years. The ranking of the companies is based on last four years’ CAGR on revenues and net profits. The companies that have reported a loss at the net level in the last four years have also been excluded from the study. There are companies that have seen a drop in net sales and profit after tax over the last year, but have still been included in the final ranking criterion.

We have given more weight to revenue and less to net profit growth as revenue growth is an important benchmark for growth, given the country’s high growth rate to arrive at a final ranking.

After applying all the filters and eliminating loss making companies, just 686 companies made it to the final list, of which we present the top 15 in each category. The list does not account for the pre-acquisition value of net sales of the companies that have been acquired by the companies present in the current database. As always, such mammoth exercises that include weighing companies can be done differently and on various more parameters. But for this, we would like your feedback!

Click here to view Ranking I | Ranking II


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