9 must-watch stocks for high-growth, high-quality seekers

In a market flooded with noise, finding companies that consistently deliver on both quality and growth is a sound strategy. To identify such businesses, we ran a focused screen across the entire listed universe, applying two key filters: a Quality Score above 8, reflecting financial strength, capital efficiency, and clean governance; and a Growth Score above 8, highlighting companies with strong earnings and business expansion over time.

This two-pronged filter yielded a list of 9 companies that combine solid fundamentals with strong performance trends. These companies span sectors but share one trait—they've demonstrated both resilience and dynamism in a challenging market.

From this list, we take a closer look at Cholamandalam Investment and Trent , two businesses that stand out for how they've balanced scale, innovation, and profitability while riding industry tailwinds.

Cholamandalam Investment

Cholamandalam Investment, part of the Murugappa Group, has scaled into one of India's largest and most diversified non-bank lenders. What began as a vehicle financier now operates across different lending verticals—from affordable housing, SME finance, personal loans and loan against property — supported by over 1,600 branches across 26 states.

Its expansion into newer segments has led to remarkable growth in recent years. Over the last five years, its assets under management (AUM) have more than doubled to Rs 1.84 lakh crore, disbursements touched Rs 1 lakh crore in FY25, and profit after tax has grown 35 per cent annually from FY11. This performance was further underpinned by uptick in underpenetrated tier-3 to tier-6 towns where 92 per cent of its branches are located.

Despite scaling across verticals, Chola has maintained discipline. Its return on equity (ROE) dropped below 17 per cent just one time in the last decade. It has maintained efficient asset utilisation, demonstrating profitable lending with a solid 10-year median return on assets (ROA) of 2.4 per cent.

Still, risks remain. Asset quality has slightly deteriorated—gross NPA rose from 3.54 per cent to 3.97 per cent in FY25. Intense competition in loans against property and home loans from banks could challenge the company. Additionally, despite recent diversification, 55 per cent of its loan book comprises vehicle finance, exposing the company to concentration risk as any slowdown in this segment could impact growth. The stock trades at par to its five-year median P/B ratio of 5.3 times.

Trent

Trent, the Tata Group's retail arm, has emerged as one of India's most admired retail growth stories. Best known for its flagship brands like Westside and Zudio, the company operates over 1,000 stores across 230 plus cities, offering fashion and lifestyle products under an integrated, owned-brand model. Unlike multi-brand retailers, Trent designs, sources, and sells its own labels—allowing it to control end-to-end pricing, inventory, and margins.

It has been a high-flier when it comes to growth. From FY20 to FY25, Trent grew its revenue from Rs 3,486 crore to Rs 17,135 crore, a 38 per cent per annum increase, while profit after tax leaped over 71 per cent per annum during this time. The engine behind this was its rapid store expansion, increasing same-store sales, and strong customer stickiness. Zudio, in particular, has become a volume driver, offering fast fashion at irresistible prices to India's value-conscious young population.

Yet, Trent hasn't chased growth recklessly. It has maintained tight working capital by strategically reducing its inventory days from 53 in FY20 to 40 in FY24 while improving return on capital employed (ROCE) from 18 per cent to 60 per cent over the same period. Its owned-brand portfolio strategy also ensures that margins don't get eroded by external vendor dependency—its EBITDA margins of 16 per cent for the last 12 months is the highest among its peers.

However, competition in the fashion retail space is intensifying. Listed peers like V-Mart, V2 Retail and Baazar Style are expanding their presence and growing at a faster rate. Moreover, Trent's heavy reliance on Zudio for growth brings concentration risks, especially if the low-price fashion trend slows or cannibalisation sets in. The stock currently trades at a rich valuation of 120 times P/E multiple, reflecting most of the growth is already priced in.

Before you leave

Chasing growth is tempting, but growth backed by quality is what sustains returns over time. These companies show that strong financials and disciplined execution matter just as much as business momentum. However, the stocks in our screener should not be taken as our recommendations. Our filters are only a starting point for deeper research. Investors must assess these companies independently before making any investment decision. If you are looking for a curated list of stock picks, check out our recommendation service— Value Research Stock Advisor —which will get you meticulously researched stock recommendations and ready-to-invest portfolios, updated every month.

Also read: 8 high-quality stocks available at attractive valuations