Top 5 companies poised for massive business expansion

livemint.com:

simple things are often overlooked, no matter the field. People tend to avoid simplicity, thinking it's boring and too common. But what if I told you that, when it comes to investing, the simplest approach often yields the best results? Today, we'll discuss one such simple yet effective approach to investing.

You can track and understand many financial metrics, but in the end, it all comes down to how much of the company's revenue translates into profits. Investors can disregard all other aspects and filters except for this, because this is ultimately what they invest in. All other providers of capital to the company get their returns before the earnings are available for the shareholders.

So, the most important metric for equity investors to track is the net earnings that the company generates. Now the question is, how can one predict or have an expectation of the earnings that the company could generate going forward? Analysts often build complex models to track various companies, but for individual investors, the simpler approach is to look for the guidance management offers for both revenue and net income for future periods. Let's look at some companies that have given strong growth guidance for the future.

First on our list is Pricol Ltd. Pricol manufactures and sells instrument clusters and other allied automobile components to OEMs and replacement markets. The company was formed by amalgamating Pricol Ltd and Pricol Pune Ltd in FY17 due to huge losses in its acquired subsidiaries in Brazil.