15% earnings growth for 10 years? These mid caps did it

High EPS (earnings per share) growth stocks have a fanbase of their own. And why not? Consistent EPS growth means a company is delivering a stable profit increase year after year, ultimately rewarding its shareholders.

We looked for such players in the mid-cap space. But to ensure that we pick businesses that also match our growth, quality, valuation and momentum parameters, we compiled mid caps rated five stars in our Value Research Stock Ratings .

To find steady profit generators from this lot, we then applied the EPS filter: annual EPS growth of at least 15 per cent over the last 10 years. This narrowed our universe to 12 stocks. We picked the top 10 by market capitalisation for our final list given in the table, and have briefly discussed two of them below, detailing the story behind their solid earnings performance. To see the complete list, check our screener .

BLS International Services

Over the past decade, BLS International has steadily built itself into a powerhouse in the niche, but crucial, sector of visa outsourcing. At 20 per cent, it's the second-largest visa service provider globally. This dominance in a specialised market has been crucial to BLS's growth in EPS over the years. It capitalised on a simple catalyst: governments around the world needed reliable, secure and efficient visa processing. And BLS, with its tech-first approach, seamlessly, became their go-to partner.

The company's capital-light model, relying heavily on technology to reduce operational costs, has allowed it to scale efficiently, helping it achieve a 10-year median EBITDA margin of 15 per cent. While global expansion was key to growth, the company also made smart acquisitions, such as iDATA and Citizenship Invest, which broadened its service offerings and solidified its global footprint. By diversifying its portfolio and expanding into related services, BLS has positioned itself to ride the tailwinds of a booming visa outsourcing market projected to grow 14 per cent annually until 2028.

However, the growth story is not without risks. The very factor that propelled BLS's growth—the reliance on government contracts—also makes it vulnerable. Geopolitical events, regulatory changes and the occasional delay in contract renewals are risks that BLS cannot entirely control. And the competitive landscape is heating up, with market leader VFS Global angling for even a bigger slice of the pie.

Manappuram Finance

Manappuram Finance 's consistent earnings growth has been the result of capitalising on a structural opportunity—the growing demand for gold-backed loans in India.

In the early 2010s, as India's financial inclusion efforts gathered pace, millions of people, particularly in rural areas, still lacked access to formal credit. Manappuram saw this gap and seized it, building a business model around providing small-ticket, short-tenure loans secured by gold. At a time when credit was hard to come by for the underserved, Manappuram's offering was a lifeline. And it tapped into an asset—gold—that was plentiful but underutilised.

Over the years, as gold became a more reliable store of value, Manappuram's loan book swelled, growing 18 per cent per year over the last decade, and its EPS grew along with it.

However, despite this, it has continued to trade at a steep discount to its major rival, Muthoot Finance , for years. The gap can be attributed to the fact that Manappuram operates on a three-month loan tenure, leading to frequent churn among borrowers and high operational costs, as compared to 12-month tenures offered by Muthoot.

Apart from these inefficiencies, rising bank competition and the cyclical nature of its microfinance portfolio adds to worries. Gold loans issued by banks have risen 37 per cent per annum during 2020-24, undercutting NBFCs on interest rates. The recent announcement of Poonawalla Fincorp entering into the gold loan business will intensify competition further.

Remember

Ultimately, this stock screener serves as just the starting point—a way to sift through the vast universe of mid-cap stocks and identify those that have delivered consistent EPS growth. While EPS is a strong indicator of past performance, it's not enough on its own. Investors must look deeper to assess the sustainability of that growth, considering factors like competitive positioning, sector dynamics and the company's ability to navigate future challenges. Do not consider the stocks mentioned in this story as our recommendations.

Also read: 5 five-star stocks at appealing valuations!