As India’s economy surges toward the $5 trillion mark, key sectors like renewable energy, healthcare, digital infrastructure, and technology are presenting massive wealth-creation opportunities.
Here’s a look at five companies that are not only thriving in today’s market but also positioning themselves for long-term success.
Narayana Hrudayalaya
Narayana Hrudayalaya owns and operates over 45 multispeciality and super-speciality hospitals across India and one in the United States. The company has a total capacity of over 6,000 beds in India (and over 100 in the US).
Narayana Hrudayalaya’s focus on providing affordable healthcare services, particularly in cardiac and renal specialities, sets it apart from its peers.
Initially concentrating on cardiac and renal care, Narayana Hrudayalaya started as a network of multispeciality primary and tertiary healthcare centres. It has since broadened its scope to include specialities such as cancer, neurology, neurosurgery, orthopaedics, and gastroenterology.
Over the past five years, the company has delivered remarkable performance, with sales growing at 5-year compounded annual growth rate (CAGR) of 11.8% and profits going up six times.
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The 5-year average return on equity (RoE) and return on capital employed (RoCE) are 20.1% and 20.7%, respectively.
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Narayana Hrudayalaya is expanding in Bangalore and Kolkata, shifting to a network-based model with smaller hospitals for better accessibility.
Recent openings in Gurugram, Dharamshala, and SRCC contributed ₹1.3 billion in Q3 revenue, with profitability expected to improve from Q4.
The company’s near-term capex is largely complete, with focus shifting to higher utilisation and operational efficiencies.
Internationally, it made a small investment in the Bahamas to explore expansion while scaling medical tourism in the Caymans.
The management aims for scalable, asset-light growth, with most new hospitals operational beyond FY28. Future capex will focus on speciality clinics and regional expansions rather than large hospitals. Brownfield deals will be selective, with strategic partnerships preferred over costly acquisitions.
KPI Green Energy
KPI Green Energy is a power-generating company in Gujarat, backed by decades of invaluable experience in the renewable energy sector.
The company has a total capacity of 533 MW as of the first nine months of the financial year 2025 (9M FY25). It aims to reach 1,000 MW by 2030.
KPI Energy is a leading renewable power producer. It supplies power through long-term agreements (PPAs), which contribute 18-20% of its revenue, while the rest comes from captive power customers (CPPs)—businesses that generate their own electricity.
The company develops, operates, and maintains solar and hybrid energy projects, offering businesses a chance to own these setups.
Through its subsidiary, KPI Energy is also involved in green hydrogen and ammonia production. It provides on-site green hydrogen plants, ensuring a steady supply by integrating renewable energy at suitable locations.
Between 2020 and 2024, sales and net profits registered a CAGR of 96.9% and 78.6%, respectively.
The RoE and RoCE averaged 27.1% and 20.2% over 5 years.
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KPI Green Energy is experiencing strong growth, with 9M FY25 revenue at ₹11.7 billion (+60% YoY) and PAT at ₹2.2 billion (+86% YoY).
The company is rapidly expanding, backed by a 2.87 GW order book, 4,180+ acres of land, and 2.59 GW evacuation capacity for future projects.
Key developments include a 300 MW solar project with Coal India and a 100 MW project in Maharashtra, while agreements in Rajasthan and Odisha boost long-term prospects.
With supportive policies and increasing renewable energy demand, KPI is well-positioned to expand across new regions and international markets while ensuring profitability.
RailTel Corporation of India
RailTel is a leading PSU telecommunications infrastructure provider that focuses on offering high-speed broadband and networking services to the railways. It also offers data centre solutions.
The state-owned entity enjoys a unique privilege – the exclusive right to lay optical fibre cables and provide telecom services across the massive 60,000 kilometres of Indian Railways network.
It’s portfolio comprises transformation and systems management, hosting and co-location services, as well as, the development of a secure and energy-efficient infrastructure environment.
Beyond this core function, RailTel has diversified its service portfolio to encompass telecom networks, data centre and hosting services and project execution.
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Between 2020-2024, the company’s sales and net profit have reported a 5-year CAGR of 20.2% and 17.2%, respectively. The RoCE and RoE averaged 16.1% and 11.8%. The company maintains a debt-free balance sheet.
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RailTel’s long-term outlook remains positive, driven by steady investments in digital infrastructure and government-backed projects.
The company’s strategy focuses on leveraging its extensive optical fibre network and data centre capabilities to expand services in telecom, IT solutions, and railway modernisation.
With increasing digitalisation in India’s transport and public sectors, RailTel is well-positioned to capitalise on emerging opportunities, including 5G deployment and smart city initiatives.
Syrma SGS Technologies
Syrma SGS Technologies is a leading player in India’s electronics manufacturing services (EMS) industry.
The company serves a wide range of industries with its electronic products, contributing 41% to consumer electronics, 21% to automotive, 25% to industrials, 7% to healthcare, and 6% to IT & railways in 9M FY25.
One of its strengths is in its pioneering role in RFID product manufacturing, where it holds a market leadership position. While a large percent of revenue comes from domestic markets, the international segment is expanding rapidly.
Unlike many EMS companies that act solely as contract manufacturers, Syrma has been expanding into product design. This value-added approach allows flexibility in idea generation, product development, and raw material selection, ultimately leading to higher margins.
Between 2020-2024, the revenue and net profit registered a 5-year CAGR of 67% and 29%, respectively. However, ROE (18.7%) and ROCE (18.6%) indicate there is still room for improvement.
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Syrma has aiming for FY25 Ebitda of ₹3.05-3.10 billion at a 7%+ margin, with revenue expected around ₹45 billion. For FY26, the company anticipates 30-35% growth, driven by new client additions in the automotive and industrial segments.
Its recently launched laptop JV is still in its early stages and will scale up gradually, with backward integration planned. The company spent ₹1.8 billion on facility expansion in Pune and Germany, with full-year capex projected at ₹2-2.45 billion and ₹1-1.5 billion earmarked for FY26.
The management’s focus is on maintaining strong margins while scaling operations.
Oracle Financial Services
Oracle Financial Services Software is a subsidiary of Oracle Global. The company enjoys strong R&D, offering products to banks in more than 150 countries.
Apart from this, the company serves customers across a variety of industries, including banking and financial services, healthcare, manufacturing, telecommunications etc.
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Oracle mainly assists companies in implementing artificial intelligence in their IT processes, effectively helping institutes minimise human errors and gain business insights. While 90% of the business comes from the products they offer, the balance 10% comes from the services end.
The business has been growing well over the past 5 years. While the sales have grown at a 5-year CAGR of 5.2%, the net profits have grown at 9.8%. The returns have been strong with the RoCE and RoE at 5-year average of 37% and 27%, respectively.
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Oracle Financial Services is doubling down on AI-driven financial solutions, recently enhancing NetSuite with AI tools to automate pricing, streamline quotes, and improve customer engagement.
Over the past year, the company has strengthened strategic collaborations to expand its offerings.
In September 2024, Oracle partnered with AWS to launch Oracle Database@AWS, enabling seamless access to Oracle Autonomous Database and Exadata Database Service within the AWS ecosystem.
Around the same time, J.P. Morgan Payments deepened its ties with Oracle, introducing new product integrations across Oracle’s platforms.
Despite these advancements, Q3 FY25 saw a decline in performance, with net profit dropping 26.9% YoY to ₹5.4 billion, while revenue fell 6% to ₹17.5 billion.
Looking ahead, AI integration remains a core focus, with Oracle emphasising cloud-based financial solutions and strategic alliances to drive future growth.
To know more, check out its financial factsheet.
Conclusion
Successfully finding multibaggers is about catching trends early and backing businesses with the vision and scalability. Companies with strong fundamentals and strategic positioning will be the ones creating lasting value.
Of course, the journey won’t be linear. Markets ebb and flow, and even the best stocks face periods of volatility.
But for investors willing to think long-term, the right mix of resilience, innovation, and industry leadership can unlock significant returns.
Happy investing.
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
