4 Midcap Compounding Stocks to Watch for Future Multibagger Potential: Lupin, Dixon, Apar Industries and Radico Khaitan
- October 23, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Lupin Rs 1,922. Dixon Rs 11,594. Apar Industries Rs 14,713. Radico Khaitan Rs 4,356.10. Market caps from Rs 61,233 crore to Rs 89,592 crore. Data as of 22 Oct 2026.
Quick Answer
Lupin, Dixon, Apar Industries and Radico Khaitan are the 4 picks in this compounding stocks watchlist, with market caps between Rs 61,233 crore and Rs 89,592 crore. Lupin stands out for the lowest PE of the group at 16.14, while Dixon offers the highest return on equity at 30.76%. PE ratios run from 16.14 to 87.03, so compare each one with its industry PE before investing. All figures are as of 22 October 2026.
Compounding stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Lupin, Dixon, Apar Industries and Radico Khaitan meet that test, with market caps from Rs 61,233 crore to Rs 89,592 crore and Lupin offering the lowest PE of the group at 16.14. Each of these companies has a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a five-year return above 100 per cent, a return on equity above 15 per cent and FY26 profit growth of at least 15 per cent, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a five-year return above 100 per cent, a return on equity above 15 per cent and FY26 profit growth of at least 15 per cent, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap between Rs 30,000 crore and Rs 1 lakh crore. Investors screening compounding stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 22 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Compounding Stocks and Why Do They Attract Multibagger Interest?
Compounding stocks are shares of mid sized companies that have more than doubled in five years on the back of rising profit. The four here cover pharmaceuticals, electronics manufacturing, conductors and spirits.
Five years of growth with high returns on equity is the mark of a true compounder. For compounding stocks, both FY26 and the latest quarter showed growth. A sensible way to study compounding stocks is to look at profit growth, returns and valuation side by side. Below, each of compounding stocks gets its own breakdown of growth, returns and valuation. Treat compounding stocks as a research list, since share prices and rankings change with every earnings season.
Compounding Stocks at a Glance: Price, Market Cap, PE and ROE
Prices are closing prices as of 22 October 2026. Lupin has the lowest PE of the group at 16.14, while Dixon posts the highest return on equity at 30.76%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Debt to Equity | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Lupin | 1,922 | 89,592 | 16.14 | 36.42 | 23.76% | 0.29 | 1,900.00 to 2,529.50 |
| Dixon Technologies | 11,594 | 78,360 | 37.64 | 45.19 | 30.76% | 0.21 | 9,600.00 to 17,299.00 |
| Apar Industries | 14,713 | 75,075 | 63.54 | 46.39 | 18.11% | 0.18 | 6,801.00 to 19,265.00 |
| Radico Khaitan | 4,356.10 | 61,233 | 87.03 | 54.95 | 18.23% | 0.15 | 2,500.00 to 4,747.00 |
Lupin: Revenue Up 26.76% in FY26
Lupin is a global pharmaceutical company with a large presence in the United States, India and other markets across generics, branded drugs and respiratory products. It reported FY26 revenue of Rs 29,038.95 crore, up 26.76% year on year, and net profit of Rs 5,355.47 crore, up 61.98%. Revenue has compounded at 14.98% a year since FY22. Operating margin was 31.06% in FY26. The debt-to-equity ratio is 0.29.
In the June 2026 quarter, revenue rose 32.45% to Rs 8,407.21 crore and net profit grew 16.01% to Rs 1,416.98 crore. The share price has gained 111.00% over five years. Foreign investors raised their holding from 21.25% in June 2025 to 22.42% in June 2026. The stock trades at a PE of 16.14 against an industry PE of 36.42, below the sector average, with a return on equity of 23.76%.
Dixon: 71.44% Profit CAGR Since FY22
Dixon Technologies is an electronics manufacturing services company that makes televisions, phones, appliances and lighting for brands. It reported FY26 revenue of Rs 49,585.84 crore, up 27.53% year on year, and net profit of Rs 1,644.25 crore, up 33.40%. Net profit has compounded at 71.44% a year since FY22, while revenue has grown 46.72% a year. Operating margin was 3.95% in FY26. The debt-to-equity ratio is 0.21.
The stock trades at a PE of 37.64 against an industry PE of 45.19, below the sector average, with a return on equity of 30.76%. In the June 2026 quarter, revenue rose 25.23% to Rs 16,075.95 crore and net profit grew 156.35% to Rs 717.83 crore. The share price has gained 114.81% over five years.
Apar Industries: 39.67% Profit CAGR Since FY22
Apar Industries makes conductors, specialty cables and transformer oils, and earns a large share of revenue from exports. It reported FY26 revenue of Rs 22,966.89 crore, up 22.95% year on year, and net profit of Rs 976.93 crore, up 18.95%. Net profit has compounded at 39.67% a year since FY22, while revenue has grown 25.19% a year. Operating margin was 8.49% in FY26. The debt-to-equity ratio is 0.18.
In the June 2026 quarter, revenue rose 29.16% to Rs 6,624.71 crore and net profit grew 77.80% to Rs 467.45 crore. The share price has gained 2287.98% over five years and 102.57% over the past year. Domestic institutions raised their holding from 22.64% in September 2025 to 24.88% in August 2026. The stock trades at a PE of 63.54 against an industry PE of 46.39, with a return on equity of 18.11%.
Radico Khaitan: 24.88% Profit CAGR Since FY22
Radico Khaitan makes Indian-made foreign liquor and premium spirits, with brands including Magic Moments, 8PM and Rampur Single Malt. It reported FY26 revenue of Rs 6,062.27 crore, up 24.84% year on year, and net profit of Rs 604.48 crore, up 74.90%. Net profit has compounded at 24.88% a year since FY22, while revenue has grown 20.50% a year. Operating margin was 4.88% in FY26. The debt-to-equity ratio is 0.15, which keeps interest costs low.
The stock trades at a PE of 87.03 against an industry PE of 54.95, with a return on equity of 18.23%. In the June 2026 quarter, revenue rose 10.44% to Rs 5,869.46 crore and net profit grew 75.91% to Rs 229.60 crore. The share price has gained 299.58% over five years and 51.47% over the past year. Domestic institutions raised their holding from 25.47% in September 2025 to 27.17% in September 2026.
Compounding Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these compounding stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | 4-Year Revenue CAGR | Latest Quarter Revenue Growth | Operating Margin (Latest Quarter) |
|---|---|---|---|---|---|---|
| Lupin | 29,038.95 | 5,355.47 | 26.76% | 14.98% | 32.45% | 31.40% |
| Dixon | 49,585.84 | 1,644.25 | 27.53% | 46.72% | 25.23% | 6.43% |
| Apar Industries | 22,966.89 | 976.93 | 22.95% | 25.19% | 29.16% | 12.05% |
| Radico Khaitan | 6,062.27 | 604.48 | 24.84% | 20.50% | 10.44% | 6.10% |
Check the Univest Screener for live data on these compounding stocks
Institutional Holding in Lupin, Dixon, Apar Industries and Radico Khaitan
Institutional holding shows who is backing these compounding stocks alongside the promoter. The table uses the latest reported quarter for each. Dixon has the deepest institutional backing, with FII and DII together holding 47.67% as of September 2026. Domestic institutions increased their holding over the past year in Apar Industries (from 22.64% to 24.88%) and Radico Khaitan (from 25.47% to 27.17%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Lupin | 46.85% | 22.42% | 24.65% | 6.08% | June 2026 |
| Dixon | 28.50% | 18.96% | 28.71% | 23.83% | September 2026 |
| Apar Industries | 55.42% | 11.36% | 24.88% | 8.34% | August 2026 |
| Radico Khaitan | 40.17% | 19.43% | 27.17% | 13.23% | September 2026 |
Risks to Weigh in Compounding Stocks
Being careful with compounding stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: Radico Khaitan trades at a PE of 87.03 against an industry PE of 54.95, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Compounding Stocks
Picking from compounding stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (36.42 to 54.95) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
Download the Univest iOS App or Univest Android App to track Lupin, Dixon, Apar Industries and Radico Khaitan live prices.
Conclusion
Among compounding stocks, Lupin stands out for the lowest PE of the group at 16.14, Dixon for the highest return on equity at 30.76%, Apar Industries for the biggest five-year price gain at 2287.98% and Radico Khaitan for 24.84% revenue growth in FY26. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing compounding stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Compounding Stocks to Watch
Which are the best compounding stocks to watch for multibagger potential?
Ans. Lupin, Dixon, Apar Industries and Radico Khaitan are the 4 names this list highlights, with market caps of Rs 89,592 crore, Rs 78,360 crore, Rs 75,075 crore and Rs 61,233 crore respectively. Lupin is notable for the lowest PE of the group at 16.14. Dixon stands out for the highest return on equity at 30.76%. Apar Industries offers the biggest five-year price gain at 2287.98%. Radico Khaitan brings 24.84% revenue growth in FY26. These are watchlist names for compounding stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Dixon a good stock for long-term investors?
Ans. Dixon has a return on equity of 30.76%, a PE of 37.64 against an industry PE of 45.19 and a market cap of Rs 78,360 crore. Net profit has compounded at 71.44% a year since FY22, and FY26 revenue rose 27.53% while June 2026 quarter net profit grew 156.35%. Long-term returns in compounding stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Apar Industries become a multibagger from here?
Ans. Apar Industries has already gained 2287.98% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in compounding stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 39.67% a year since FY22, and FY26 revenue rose 22.95%. At a PE of 63.54 against an industry PE of 46.39, valuation should be checked against that growth before investing.
What is the market cap of Lupin, Dixon, Apar Industries and Radico Khaitan?
Ans. As of 22 October 2026, Lupin has a market cap of Rs 89,592 crore, Dixon has a market cap of Rs 78,360 crore, Apar Industries has a market cap of Rs 75,075 crore and Radico Khaitan has a market cap of Rs 61,233 crore. All of them qualify as midcaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on compounding stocks.
What are the risks of investing in compounding stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Radico Khaitan trades at a PE of 87.03 against an industry PE of 54.95, so earnings growth needs to hold up.
Why is Radico Khaitan trading at a PE of 87.03?
Ans. Radico Khaitan’s PE of 87.03 compares with an industry PE of 54.95. The market is paying a premium for a return on equity of 18.23%, profit growth of 24.88% a year since FY22 and latest-quarter profit growth of 75.91%, which also means the stock is more sensitive if growth slows. Investors in compounding stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Lupin, Dixon, Apar Industries and Radico Khaitan?
Ans. As of the latest reported quarter, FII and DII together hold 47.07% of Lupin (22.42% and 24.65%), 47.67% of Dixon (18.96% and 28.71%), 36.24% of Apar Industries (11.36% and 24.88%) and 46.60% of Radico Khaitan (19.43% and 27.17%). Rising institutional holding is a useful signal in compounding stocks, though it should be read with earnings trends rather than on its own.
