7 high-growth large caps at reasonable prices

In today's market, finding growth stocks that are priced fairly remains an investor's holy grail. High-growth stocks often come with inflated prices while value stocks rarely match the growth investors crave. The key, then, lies in finding companies that combine strong growth with reasonable valuations—the essence of the Growth at a Reasonable Price (GARP) strategy.

To identify such opportunities, we ran a screen for large-cap stocks that have delivered consistent earnings growth (with a Growth Score above 7) and are not overpriced (Valuation Score above 4). From this pool, we shortlisted seven fundamentally strong companies that balance growth and affordability. Let's take a closer look at Adani Power and State Bank of India (SBI)—two stocks that not only meet our criteria but also reflect broader themes in India's economic growth.

Adani Power

Adani Power, India's largest private-sector thermal power producer, has been riding the power demand tailwinds. Its sharper execution, higher capacity utilisation, regulatory recoveries and improved cost efficiency further helped it record the highest-ever revenue in FY25.

Another key reason behind this strong performance is the dramatic improvement in plant load factor (PLF), which increased from 48 per cent in FY23 to 71 per cent in FY25. PLF is a measure of how effectively a power plant gets utilised. The company had historically struggled with low PLF due to limited long-term power purchase agreements (PPAs) and inconsistent coal supply, often forcing it to rely on volatile merchant markets. However, new PPAs and improved fuel availability have been key to boosting capacity utilisation, which in turn, increased revenue and profits. Currently, 85 per cent of its capacity is secured under long-term PPAs, providing steady revenue visibility.

The company has a robust growth pipeline in place with 9.6 GW of brownfield projects and 1.6 GW of greenfield projects scheduled for development. By securing equipment early, Adani Power is also aiming to avoid delays and keep these projects on track. Financially, the company has deleveraged substantially, with its debt-to-equity down to 0.7 times in FY25 from 4 times in FY21, and continues to generate free cash flows.

Despite these positives, Adani Power still trades at a relatively modest P/E of 16x. This discount is largely due to investors' concerns over the promoter group's political ties and ESG-related perceptions.

State Bank of India (SBI)

As India's largest bank, SBI continues to prove that size doesn't come at the cost of agility. With a massive balance sheet exceeding Rs 66 lakh crore, SBI has still maintained robust growth in recent years. In FY25, for instance, it posted a healthy credit growth of 12 per cent, driven by robust SME and retail lending.

Importantly, SBI's asset quality has improved significantly over the past few years. From a gross NPA ratio of 10.9 per cent in FY18, the bank has steadily brought it down to 1.82 per cent in FY25, while net NPAs have declined to just 0.47 per cent. This turnaround reflects stronger underwriting, better recovery mechanisms and a deliberate shift towards secured retail-heavy lending. The bank's credit cost now stands at just 0.4 per cent from 3.6 per cent in FY18, among the lowest in the industry. Its digital push through YONO has been a game-changer with 64 per cent of new savings accounts now opening digitally.

However, with interest rates expected to trend lower, SBI, like all banks, faces the risk of narrowing net interest margins (NIMs). As repo rates get lowered, the bank will have to reprice its loan book downward while deposit rates will likely stick for longer. This lag effect could compress margins in coming quarters.

Despite these strengths, the stock trades at a P/B of 1.5 times, lower than private peers. This discount can be attributed to conservative loan growth compared to faster-moving private banks and legacy public sector perceptions.

Before you leave

This screen highlights that meaningful growth doesn't always have to come at sky-high valuations. These businesses balance earnings momentum with fair pricing, making them worthy of further attention. However, it's important to remember that stock screens are only a starting point—not the final decision. A deeper understanding of each company's business model, financial health, and growth prospects is essential before committing to any investment.

For thoroughly researched stock ideas and expert analysis, explore Value Research Stock Advisor . Our service provides carefully vetted stock recommendations, along with ready-to-invest portfolios, updated every month to help you make informed and confident investment choices.

Also read: 8 five-star rated stocks at appealing valuations!