Best Fundamentally Strong Stocks in February 2026 Based on 5-Year CAGR: BSE, TD Power Systems and More

Strong earnings growth and capital efficiency remain key indicators of fundamentally strong stocks. In February 2026, 5 companies stand out based on their 5-year CAGR and profitability metrics.

These companies operate across stock exchange services, defence shipbuilding, power equipment, industrial manufacturing and recycling. Their financial ratios reflect sustained earnings expansion supported by operational performance.

Top Fundamentally Strong Stocks in February 2026 Based on 5-Year CAGR

Note: Data as of February 13, 2026.

High Growth Backed by Profitability Metrics

BSE Limited reported the highest 5Y CAGR at 114.78%. The company recorded ROE of 33.02% and ROCE of 31.17%, reflecting efficient capital utilisation. EBITDA margin stood at 57.1%, while net profit margin was 39.89%. Its market capitalisation was ₹128,021.25 crore, with a PE ratio of 96.56 and PB ratio of 27.98.

TD Power Systems Limited delivered a 5Y CAGR of 92.53%. ROE was 21.3% and ROCE was 27.45%. EBITDA margin came in at 19.89%, with net profit margin at 13.4%. The company had a market cap of ₹13,213.59 crore and traded at a PE of 75.75 and PB of 15.37.

Industrial And Manufacturing Growth Drivers

Apar Industries Limited posted a 5Y CAGR of 85%. ROE was 19.6% and ROCE stood at 31.42%. EBITDA margin was 9% and net profit margin was 4.4%. The company’s market capitalisation was ₹38,262.33 crore, with a PE ratio of 46.59 and PB ratio of 8.5.

Gravita India Limited recorded a 5Y CAGR of 84.38%. ROE stood at 21.34% and ROCE at 17.96%. EBITDA margin was 11.03%, while net profit margin was 7.85%. The stock had a market cap of ₹12,179.82 crore, trading at a PE of 38.99 and PB of 5.86.

Top Fundamentally Strong Stocks in February 2026 Based on 1-Year Return

Note: Data as of February 13, 2026.

Read More: Best 10 International Mutual Funds in India for February 2026 by 5‑Year CAGR.

Conclusion

The 5 companies highlighted recorded 5Y CAGR ranging between 83.75% and 114.78%. Each company reported ROE above 19% and maintained positive operating margins.

Market capitalisations ranged from ₹12,179.82 crore to ₹128,021.25 crore. The data reflects strong historical earnings growth supported by profitability metrics as of February 2026.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.