But, market swings are just noise—real wealth is built by investing in businesses that compound over time.
If early retirement is your goal, it’s not just about saving—it’s about picking the right stocks to make your money work harder. Companies with strong cash flows, market dominance, and high-growth potential can be the ultimate game changers.
Also read: Star appeal fading: Can Indian markets retain their investment edge?
In this report, we’ve identified five such stocks—businesses built to not just weather market cycles but to thrive through them. These could be your ticket to financial freedom.
Let’s dive in.
360 ONE WAM
360 ONE WAM is a leading wealth and asset management firm catering to high-net-worth individuals (HNIs) and institutional clients.
The company, with a strong track record of delivering consistent returns and managing diverse asset classes, has built a reputation for innovation and strategic expansion.
The company has delivered a strong performance, with sales and net profit growing at a 5-year CAGR of 12.8% and 16.5%, respectively, between 2020 and 2024.
Its 5-year average return on equity (RoE) stands at 17.5%, while return on capital employed (RoCE) is at 11.6%, reflecting efficient capital utilisation.
View Full Image
360 ONE WAM is making strategic moves to cement its position as a high-growth wealth management player.
The recent acquisition of B&K Securities is a major step, expected to enhance research capabilities and provide an entry into investment banking.
B&K’s institutional equity broking, equity capital markets (ECM) segment, and corporate treasury business align well with 360 ONE’s expansion strategy. The acquisition is expected to be earnings per share (EPS) accretive, enhancing the firm’s overall service offerings and market positioning.
The management remains optimistic about long-term growth prospects, aiming for a revenue mix comprising transaction-based revenue (TBR) at 20-25%, net interest income (NII) at 20%, and core annual recurring revenue (ARR) income at 60%.
With strong investment inflows, a well-diversified product portfolio, and a strategic acquisition roadmap, 360 ONE WAM continues to reinforce its leadership in the wealth management industry.
Shriram Finance
Shriram Finance is a leading non-banking financial company (NBFC) with a strong presence in retail lending, commercial vehicle financing, and small business loans.
The company is actively restructuring its business to sharpen focus on high-growth areas while maintaining financial stability.
A key step in this direction is the launch of Shriram Green Finance, consolidating all green financing initiatives under one umbrella.
With an assets under management (AUM) target of ₹50 billion over the next four years, this vertical will fund electric vehicles, charging infrastructure, and renewable energy projects.
The company is also attracting global and domestic green investment funds, starting with key regions like Karnataka, Kerala, NCR, and Maharashtra.
The business has done well in the past few years. Between 2020-2024, the NII has grown well whereas the probability has improved. The company’s 5-year average RoE and RoCE stand at 14.3% and 11%, respectively.
View Full Image
Recently, Shriram Finance secured a $1.27 billion syndicated loan—the largest ever for an Indian private NBFC, strengthening its financial muscle. The company’s ability to secure such a massive funding line reflects strong investor confidence.
Also read: Nifty down for five months in a row, a first in 29 years
Shriram Finance has also exited the housing finance business, selling its 84.4% stake in Shriram Housing Finance to Warburg Pincus for ₹39.3 billion. This frees up capital, allowing the company to sharpen focus on core lending, which management believes will drive higher returns in the long run.
Mahindra & Mahindra
Mahindra & Mahindra (M&M) is one of India’s largest automobile and tractor manufacturers, playing a crucial role in the country’s mobility sector.
It has been a dominant force in India’s auto sector, leading the SUV and tractor markets while expanding its footprint in electric vehicles (EVs).
The company has capitalised on India’s shift towards premium SUVs, with models like the Scorpio-N, Thar, and XUV700 commanding strong demand. Its leadership in the tractor segment provides a stable revenue stream, albeit with cyclical risks.
Between 2020-2024, the sales and net profits have registered a CAGR of 5.9% and 15.3%, respectively. The returns have also been rangebound with the RoCE and RoE averaging at 14.9% and 12.2% over a 5 year period.
View Full Image
Looking ahead, M&M is aggressively pushing into EVs, committing ₹160 billion in investments. The upcoming XUV.e8 and BE.05, along with a dedicated EV plant at Chakan, signal its ambition.
However, competition from Tata Motors, Tesla, and BYD remains a challenge. The company aims to scale production to 90,000 units annually by 2025, but execution will be key.
Beyond auto, M&M’s financial services arm, Mahindra Finance, is stabilising asset quality while expanding into digital lending.
Tech Mahindra, however, faces headwinds in the IT sector and is undergoing a strategic overhaul to improve margins.
Additionally, the company’s “Growth Gems” initiative—spanning logistics, real estate, and renewable energy—could unlock long-term value.
M&M remains well-positioned, but execution risks persist, especially in scaling EVs and navigating IT sector challenges. With strong cash flows and an expanding product pipeline, the company has potential, but investors must track its profitability in the new growth areas.
Coforge
Coforge, a leading global digital services and business solutions provider, primarily serves the travel, government, and banking, financial services, and insurance (BFSI) sectors.
Also read: India’s travel rush has a clear winner—and it’s not airlines
With deep domain expertise, the company has steadily expanded its global presence, delivering solutions to clients through both direct engagements and its network of subsidiaries and branches.
This growth builds on the company’s financial performance between 2020-2024, during which Coforge reported a 5-year revenue CAGR of 19.5% and a profit CAGR of 14.5%. This translated into a robust 5-year average RoCE of 29.6% and RoE of 24.3%.
View Full Image
Coforge’s long-term strategy targets $2 billion in revenue by FY27, supported by a strong 40% YoY increase in its near-term order book and a 5.4% QoQ rise in organic headcount.
Coforge secured three major deals recently—one each in Europe, America, and the UK—including two new clients and one expansion. The company is also advancing its AI and digital solutions to broaden its client base.
Computer Age Management Services (CAMS)
CAMS is the largest registrar and transfer agent of mutual funds in India, boasting a market share of more than 60% based on average assets under management in the mutual fund industry.
It offers a comprehensive range of services and plays a significant role in shaping and upholding the market perception of its clients.
Servicing 10 of the 15 largest mutual funds in the industry, the company derives 90% of its revenues from the mutual fund business. The balance 10% comes from the non-mutual fund business.
The business has done well in the past 5 years, thanks to its dominant position in the market. While the sales were up 10.5% CAGR, the net profits more than doubled between 2020-2024.
This has allowed the return ratios to expand substantially. The RoCE and RoE has averaged at a staggering 56% and 42% over a 5-year period.
View Full Image
CAMS has solidified its market leadership with a 66% market share in equity assets.
The company’s dominance is further evident in its role as the industry’s preferred partner for mutual fund houses. CAMS-serviced funds garnered a substantial 71% of industry equity net-flows, with SIP registrations hitting a new record of 9.3 million.
The company has made strategic investments in technology, including a partnership with Google Cloud to modernise its registrar and transfer agent (RTA) platform.
Its foray into alternatives is gaining traction, with a growing client base and new offerings. CAMS KRA, the KYC arm, is also experiencing robust growth, adding new clients and expanding its reach.
While challenges such as economic fluctuations and increased competition exist, CAMS’ strong market position, financial performance, and strategic initiatives suggest a promising growth trajectory.
CAMS’ business model positions it as a relatively insulated player in the face of global economic uncertainties. As a registrar and transfer agent, its core revenue streams are derived from recurring fees, largely independent of market volatility.
Conclusion
The road to early retirement won’t be smooth. There will be corrections, volatility, and moments of doubt. But history shows that great businesses tend to reward those who stay the course.
The key?
Stick to companies with strong cash flows, scalable businesses, and a track record of navigating economic ups and downs.
Also read: Can this covid-times saviour navigate the self-inflicted deep slump?
That said, no matter how promising a stock looks, it’s crucial to do your own due diligence. Every investor’s risk appetite and financial goals are different.
A stock that fits one portfolio might not suit another. So, before you jump in, evaluate the company’s fundamentals, competitive edge, and whether it aligns with your investment strategy.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
