Yet, much of the stock market’s attention remains locked on a few obvious names.
The real opportunity often lies in businesses working under the radar, in companies quietly laying strong foundations, building brand equity, expanding distribution, and deepening customer relationships without much fanfare.
Over the next five years, investors who can identify these silent compounders early may stand to gain significantly.
Here are five such companies that could deliver big as India’s next growth chapter unfolds.
#1 Ethos: Luxury with momentum
Ethos is India’s largest luxury and premium watch retailer, operating 73 boutiques across 26 cities and offering more than 70 top global brands.
Over the years, it has emerged as the preferred retail partner for international watchmakers entering India—thanks to strong brand relationships and a focus on exclusivity. In 9MFY25, nearly 30% of its revenue came from exclusive brand partnerships, a key edge in a market where authenticity and after-sales service matter deeply.
Ethos isn’t stopping at watches. It has expanded into adjacent luxury segments, launching travel accessories under Zero Halliburton and preparing standalone jewellery boutiques for French brand Messika.
In 9MFY25, revenue rose 26% YoY and Ebitda grew 22.8%, even as new store openings put pressure on margins. Same-store sales rose 18.3%, driven by an 11% increase in average selling price.
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Looking ahead, Ethos is aiming for a tenfold increase in revenue over the next decade, backed by deeper brand partnerships, a push into new cities, and growth in its certified pre-owned watch business.
#2 Carysil: Kitchenware going global
Carysil is a leading maker of premium kitchen solutions, offering quartz sinks, stainless steel sinks, faucets, and built-in appliances. With a presence in over 60 countries and subsidiaries in the UK, US, and the United Arab Emirates, the company has steadily positioned itself as a trusted one-stop kitchen brand.
Its domestic network continues to expand—now comprising 3,800+ dealers and 90 distributors. A recent order from Kohler India and anticipated approvals from IKEA for new SKUs are set to boost volumes and plant utilisation from FY26 onwards.
Carysil is also building for the future. It’s investing in capacity expansion, streamlining operations, and diversifying into higher-value categories like workstation sinks and smart appliances. A new manufacturing facility is planned adjacent to its current plant to support this next phase of growth.
In 9MFY25, total income rose 24% YoY. Ebitda grew 8.7% and PAT rose 6.6%, with profitability expected to improve as input and freight costs normalise.
The company is targeting a plant utilisation ramp-up from 65% to 80% by FY26, driven by solid order visibility in quartz sinks and traction in its stainless steel sink segment. High-margin product launches, deeper domestic penetration, and a turnaround in overseas subsidiaries remain strategic priorities.
#3 Devyani International: Betting big on QSR boom
Devyani International is one of India’s largest quick-service restaurant (QSR) operators, with marquee global brands like KFC, Pizza Hut and Costa Coffee under its belt. Its portfolio spans dine-in outlets, delivery-first formats, food courts, and high-street stores—across India and select international markets like Nepal, Nigeria and Thailand.
As of December 2024, the company crossed 2,030 outlets—hitting its milestone ahead of schedule and reinforcing its long-term expansion thesis.
Devyani holds exclusive rights for Yum Brands’ KFC and Pizza Hut in select territories, as well as Costa Coffee, giving it a strong brand edge. It’s also diversifying into new categories through acquisitions like Sky Gate Hospitality, the parent of Biryani By Kilo, Goila Butter Chicken and The Bhojan.
The company is riding multiple tailwinds: a growing shift toward organised dining, rising disposable incomes, and a consumer preference for branded, standardised food experiences.
Growth is being driven by aggressive expansion into tier 2 and tier 3 cities, scaling up of global operations, and new formats like food courts through a joint venture with PVR INOX. Premiumisation in KFC and Costa Coffee is also underway.
In Q3FY25, consolidated revenue jumped 54% YoY—helped by the Thailand acquisition. Domestic revenue grew 9.6%, primarily from store additions. The Ebitda margin improved sequentially to 10.1%.
Looking ahead, Devyani is focused on driving operational efficiencies and margin recovery in KFC, while taking a calibrated approach to expanding Pizza Hut. The integration of Sky Gate brands could unlock new levers of growth across formats and geographies.
#4 Nuvama Wealth Management: A full-stack financial powerhouse
Nuvama Wealth Management is one of India’s fastest-growing wealth and investment platforms, catering to high-net-worth and ultra-high-net-worth clients. It offers a full-stack model spanning investment advisory, asset management, asset services, and investment banking—positioning itself as a one-stop financial solutions provider.
Its open-architecture platform is powered by 1,350+ relationship managers and a growing network of external wealth partners, with a footprint across key domestic and offshore markets.
The wealth business benefits from strong client stickiness, a rising share of managed products, and growing annuity-led revenue. Its asset services segment provides a solid base of recurring income, even amid market volatility.
Nuvama is targeting India’s rising wealth: from increasing financialisation of household savings and expanding capital markets, to the formalisation of wealth through regulatory changes and tech-led distribution.
Offshore expansion is a core focus—with platforms in Dubai already live and Singapore in the pipeline. The company is also developing a differentiated offering under India’s new Specialized Investment Fund (SIF) regime.
As of December 2024, client assets rose 36% YoY. In 9MFY25, revenue grew 45% YoY, while operating PAT surged 76%. The cost-to-income ratio improved to 54%. Wealth management AUM grew 38%; private wealth assets rose 24%; asset management AUM crossed ₹11.3 bn.
On the capital markets side, Nuvama maintained an 18% share of India’s IPO market by value and held a 6.2% market share in institutional equities.
Looking ahead, Nuvama plans to double its relationship manager base over the next 3–5 years, scale up asset management—both public and alternative—and strengthen its offshore presence. The company is aiming to quadruple the size of its wealth business over the next five years, underpinned by disciplined execution and India’s rapidly growing wealth pool.
#5 Paras Defence and Space Technologies: Engineering defence future
Paras Defence and Space Technologies is a leading player in India’s growing defence and space manufacturing ecosystem, focused on high-precision, technology-intensive solutions.
It serves strategic sectors through offerings such as missile motor tubes, defence automation systems, space optics, hyperspectral cameras, and electromagnetic pulse protection. Its key customers include defence public sector undertakings (PSUs), space agencies, and research organisations.
Paras has been deepening its expertise in optics and optronics—critical technologies for future warfare, autonomous systems, and satellite-based surveillance. These high-value segments are expected to anchor its long-term growth.
The company is also a direct beneficiary of India’s push for indigenisation in defence procurement and rising capex allocations to domestic players.
In a landmark move, Paras announced a ₹120 billion investment to set up India’s first dedicated Optics Park in Maharashtra. This greenfield facility, expected to begin production in 2028, will develop core technologies including silicon and germanium crystal growth, MEMS sensors, and advanced laser systems—catering to both defence and civilian markets.
In 9MFY25, revenue from operations rose 46% YoY, while profit before tax doubled. A successful qualified institutional placement (QIP) in Q3FY25 has further strengthened the balance sheet ahead of its upcoming capex cycle.
Looking forward, Paras Defence is focused on scaling exports, increasing private-sector revenue contribution, and expanding its high-margin optics business. With large addressable markets and long-term tailwinds, it is positioning itself as a key player in India’s strategic autonomy ambitions.
Conclusion
Identifying companies on the verge of transformation requires more than tracking headlines—it calls for a clear understanding of what drives scalable growth and the patience to stay invested through cycles of volatility.
But strong external tailwinds alone aren’t enough. Ultimately, long-term success hinges on disciplined execution, competitive positioning, and quality of leadership.
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Investors should carefully assess their risk appetite, time horizon, and portfolio fit before making any decisions. Sustainable wealth creation is less about chasing momentum—and more about backing the right businesses with conviction and clarity.
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
