4 high-growth stocks hiding in plain sight

In a fast-changing market, finding stocks that combine strong growth, high momentum and solid value is exceptionally rare. Our latest Long-term Growth portfolio update has just uncovered four such stocks - each growing rapidly, riding a momentum wave, yet still trading at attractive valuations. This combination usually doesn't last long, making these picks especially timely.

Don't chase momentum blindly

Before celebrating these new names, it's worth recalling the dangers of momentum-chasing without regard for quality. A classic example is Gensol Engineering : for years it boasted sky-high momentum scores (8-10) even as its quality scores languished around 2-4 (on a 10-point scale). Investors piled in as the stock ran up, only to be caught off-guard when regulatory scandals hit. In early 2024, Gensol's stock had surged over 200 per cent from its listing price, but by spring 2025 it had plunged nearly 90 per cent . In less than two weeks during April, over 70 per cent of its value evaporated, obliterating gains for those who had relied on its lofty momentum alone.

Momentum-driven rallies can mask underlying risk. As one analysis notes, "momentum crashes tend to occur at the end of a bear market, when trends reverse rapidly, catching out those who rely on the recent price action". Even Morgan Stanley has warned that hot momentum stocks can be bid up far faster than their profits grow - "investors may rapidly bid up stocks without commensurate gains in company profitability" - setting the stage for painful reversals.

To illustrate this, consider Gensol's Value Research scores over time: its momentum remained high, but quality stayed stubbornly low.

Despite its strong price run, Gensol's dismal quality reading (fraud and fund-diversion issues) eventually overwhelmed its momentum. This underscores a broader lesson: momentum without quality is a recipe for steep losses . In our analysis of all Value Research-rated stocks, those with momentum scores above 7 but low quality (2-4) suffered a median return of -28 per cent during the recent market correction (September 2024-March 2025). By contrast, high-momentum stocks with strong quality scores (8-10) fell only -14 per cent on median. (See table below.) In other words, quality has significantly shielded downside risk .

Four all-rounded growth picks this month

With that in mind, we are excited to share that all four new additions to the Long-term Growth Portfolio this month combine robust growth, solid momentum and high quality.

Below we disguise their names but flag their businesses:

• A dominant mobility brand (Large Cap): A category leader in premium personal transport, this company is witnessing a resurgence in demand—both locally and globally. It scores 7 on Growth , with perfect 10s in Momentum and Quality , reflecting strong financials and investor interest. Its valuation remains attractive for a business of this scale and brand strength.
  
• A niche industrial exporter (Mid Cap): Operating in a specialised global segment, this firm has quietly built scale and credibility. It boasts a Growth score of 8 , Quality at 8 , but Momentum at 5 —suggesting it's still under the radar. As international demand recovers, this could be a classic case of fundamentals leading price action.
  
• A critical infrastructure platform (Mid Cap): This digital-first utility-like business plays a pivotal role in a highly regulated industry. Despite policy uncertainties, its performance remains robust. With Growth at 7 , Momentum at 8 , and a spotless Quality score of 10 , it stands out for its consistency and resilience.
  
• A rural machinery manufacturer (Small Cap): Serving India's vast farming and agri-linked economy, this small-cap has bounced back with strong volume growth. Backed by a Growth score of 7 , Momentum of 6 , and Quality of 7 , it offers a rare mix of scale, domain expertise, and improving tailwinds—without speculative froth.

Each of these businesses is fundamentally strong, and their Value Research ratings confirm it. With growth scores around 7-8 and quality scores of 7-10, they fit our all-rounded momentum-and-quality theme. That makes them standout buys in the current market.

Stay ahead with Value Research Stock Advisor

Discovering opportunities like these four stocks - rare, high-growth names at bargain valuations - is exactly what Value Research Stock Advisor is all about. Our subscribers get timely portfolio updates and full research on every pick. If you'd like to see the complete list of new additions (including company names) and receive ongoing alerts about future upgrades or sales in the Long-term Growth portfolio, subscribe to Value Research Stock Advisor today . It's your best way to catch these opportunities early and stay informed of changes in our portfolios.

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P.S. If you are already a subscriber, click here to access our Long-term Growth Portfolio for May 2025.