The Rising Stars of Indian Industry: A Deep Dive into Six High Performing Companies to invest

India’s corporate landscape is increasingly dominated by companies that have not only demonstrated resilience but also charted out ambitious growth trajectories. Today, we look at six exemplary firms from different sectors, each of which is setting benchmarks for industry performance and expansion. These companies ONGC, Kaynes Tech, Eris Lifesciences, ISGEC Heavy Engineering, Nazara Technologies, and EMS are carving their own paths to success, leveraging their competitive advantages, market positioning, and strategic initiatives.

1. ONGC: Maximizing Hydrocarbon Potential for Sustainable Growth

Oil and Natural Gas Corporation (ONGC) remains India’s flagship in the energy sector, with over six decades of experience underpinning its competitive advantage. Its extensive proven reserves act as a solid foundation, ensuring a stable and reliable supply of hydrocarbons over the long term. Looking ahead, ONGC has set ambitious targets to significantly ramp up its oil and gas production by FY27.

The company aims to produce 47.3 million metric tonnes of oil equivalent by this time. This boost in production, combined with initiatives to monetize new discoveries and secure premium gas prices from its nomination fields, promises to strengthen its financials. Additionally, a potential improvement in net realisations for crude oil is expected to further enhance earnings, positioning ONGC to deliver consistently strong performance.

With its robust long-term production guidance and a strategic focus on capitalizing on market opportunities, ONGC is well-positioned to maintain its leadership in the energy sector, especially in an era of evolving global energy dynamics.

2. Kaynes Tech: Leading India’s Electronics Manufacturing Revolution

Kaynes Technology is a leading end-to-end electronics manufacturer with a strong foothold in the Internet of Things (IoT) sector. The company’s wide array of Electronics System Design & Manufacturing (ESDM) services puts it at the forefront of India’s electronics manufacturing revolution. With an impressive order book of Rs 5,040 crore, Kaynes Tech is set to execute a substantial portion of these orders in the current year, bolstered by multi-year contracts from large customers.

In addition to its core offerings, the company is making strides in new areas such as OSAT (Outsourced Semiconductor Assembly and Test) and PCB (Printed Circuit Boards), both of which are expected to start contributing meaningfully from FY27. The company has also signed four Memorandums of Understanding (MoUs) with customers in the OSAT space, signaling significant business growth.

On the export front, Kaynes Tech is poised for success, with strong industrial and medical export orders. Its recent approval by a major medical provider in the U.S. and Europe adds credibility to its international expansion plans. As the global demand for advanced electronics manufacturing rises, Kaynes Tech’s comprehensive capabilities and strategic direction position it as a key player in the global ESDM market.

3. Eris Lifesciences: Scaling New Heights in the Pharma Sector

Eris Lifesciences has quickly established itself as a formidable player in India’s pharmaceutical sector. Ranked among the top 20 domestic formulation companies in the Indian Pharmaceutical Market (IPM), Eris has made significant strides since its IPO just seven years ago. A major step in its growth strategy was the recent acquisition of Swiss Parenterals, a company with a FY23 revenue of Rs 280 crore and an impressive 37% EBITDA margin.

Eris has increased its equity stake in Swiss Parenterals to 70%, reinforcing its control and setting the stage for even greater integration and revenue growth. For FY25, Eris is targeting revenues of Rs 3,000 crore, a nearly 49% increase, with an expected EBITDA margin of 35%. In tandem with its revenue growth, the company is focusing on reducing its debt-to-EBITDA ratio to less than 2x in the next 18 months, with plans to cut its net debt below Rs 2,000 crore by FY26. This dual strategy of revenue expansion and debt reduction is set to drive robust earnings growth in the coming years.

4. ISGEC Heavy Engineering: Positioned for Growth in India’s Infrastructure Boom

As India’s infrastructure sector experiences a significant revival, ISGEC Heavy Engineering is poised to benefit from increased government spending, policy reforms, and renewed private sector investment. The company’s vast production capabilities allow it to serve multiple industries, offering a wide range of machinery and equipment.

In Q1FY25, ISGEC’s consolidated order book stood at Rs 7,741 crore, with projects accounting for 69% of the total and manufacturing comprising 31%. Management is optimistic, guiding for double-digit revenue growth over the next two years, supported by a robust order book pipeline. ISGEC’s focus on operational efficiency, sustainability, and customer-centric solutions will be critical as the company navigates a dynamic business environment and taps into strong growth tailwinds from India’s infrastructure sector.

5. Nazara Technologies: Expanding Dominance in the Gaming and Esports Industry

Nazara Technologies continues to cement its leadership in the gaming and esports domains, particularly in India and South Asia. Its esports subsidiary, Nodwin, is a major player, while the company’s content platform, Sportskeeda, engages a global audience, particularly sports enthusiasts in India and the United States. Nazara operates multiple revenue streams, including advertising, subscriptions, media rights, in-app purchases, brand sponsorships, and platform fees.

Nazara’s recent acquisitions are setting it up for future success, particularly the acquisition of PokerBaazi, India’s largest online poker platform with a 44% market share. Other strategic acquisitions, such as Fusebox and Soap Central, have strengthened its core gaming business and expanded its global footprint, particularly in developed markets.

As Nazara continues its acquisition spree and capitalizes on the growing popularity of gaming and esports, it is positioned for further expansion and revenue growth across multiple platforms.

6. EMS: Driving Innovation in India’s Water and Wastewater Management Sector

EMS plays a pivotal role in India’s water and wastewater management sector, providing engineering, procurement, and construction (EPC) services as well as operations and maintenance (O&M) solutions for government authorities and local municipalities. With an order book of Rs 1,800 crore as of Q1FY25 and a robust pipeline of ongoing bids worth Rs 4,000 crore, the company is well-positioned for strong growth in the coming years.

EMS expects to maintain a book-to-bill ratio of approximately 2.5x in FY25, supported by its robust order book and bid pipeline. Management is projecting revenue growth of 30-35% for FY25, driven by its strong presence in the sewerage and water management sectors. Notably, even in Tier-1 cities in India, only 30-40% of the sewerage network is established, presenting a significant growth opportunity for EMS.

In summary, These six companies exemplify the breadth and depth of India’s industrial prowess, each excelling in its respective sector while adopting forward-thinking strategies for growth. Whether it’s ONGC’s leadership in hydrocarbons, Kaynes Tech’s innovations in electronics manufacturing, Eris Lifesciences’ pharmaceutical advancements, ISGEC’s role in infrastructure development, Nazara’s dominance in gaming, or EMS’s contributions to water management these firms are set to shape India’s economic future with their robust performance and visionary leadership.