High sales growth indicates that a company’s revenue is rising sharply, while strong profit growth reflects improving earnings and better overall business efficiency. Together, they often signal a healthy and expanding business.
In the stock market, it becomes especially interesting when Foreign Institutional Investors (FIIs) increase their stakes in such high-growth companies. In the March 2026 quarter, FIIs raised their holdings in nearly 77 smallcap stocks that were showing strong momentum. These companies had reported impressive fundamentals, with profit growth above 50% and sales growth exceeding 25%. From this broader universe, a focused scan highlighted 14 smallcap stocks that went on to rally between 50% and 225% in CY26. Notably, six of these turned into multibaggers. (Data Source: ACE Equity)
