These companies are either market leaders in their respective fields or are growing rapidly.
As ample liquidity engulfs the stock market, many companies are exploiting the IPO route to raise money at high valuations.
However, some companies do not do so. Why?
There could be many reasons. Some of these may be due to promoters not wanting to dilute their holdings or lack of need to raise capital.
In this article, we will take you through 5 such companies.
They are not listed on the stock exchange. They are also market leaders in their respective or rapidly growing fields.
#1 Zerodha
Zerodha is primarily engaged in the business of providing securities brokerage services to retail clients.
It also offers other financial assets, from mutual funds to government securities (g-sec) to invest in.
The company was founded in 2010 by Nithin Kamath, a veteran trader. The startup was started with the money that Nithin had accumulated from trading over the years.
Back then, high brokerage and no transparency were issues that traders complained about.
Nithin, a trader, understands the pain of traders better than anyone. He sees this as an opportunity to break into a highly competitive industry. Thus, Zerodha was born.
Zerodha pioneered the discount brokerage model in India and introduced methods such as “fixed fees” in trading and “zero brokerage” in equity investments.
Today, these practices have become industry standards, making Zerodha India India’s largest broker with an active client base of over 7.5 million.
Interestingly, the company claims they haven’t spent a dime on advertising and marketing. It has acquired all of its clients through word of mouth marketing or through the popular education initiative Zerodha Varsity.
In addition, the company has not raised any funds since its inception and does not intend to in the near future.
This indicates that the company is funding its operations through internal accruals, implying that the company is profitable unlike most startups.
Recently, in a series of tweets, Nithin announced that the company registered a profit of Rs 10 billion in fiscal year 2021. This is more than double the profit the company reported in fiscal 2020.
Removing this risk is something we are making available to everyone on our team through our ESOP buyback program. A portion of the profits is allocated to the annual redemption. This year it is ~200 crores Rs.
Our PAT for Fiscal Year 20/21 ~ Rs 1000 crores (similar to bank brokers). 5/7– Nithin Kamath (@ Nithin0dha) May 30, 2021
The following table shows Zerodha’s profit figures for the last three years.
Besides Nithin Kamath, Nikhil Kamath and Seema Patil are the promoters of the company.
#2 Parle Products
Parle Products, the company behind Parle G has come a long way.
The company started with just one brand of biscuits in 1928 but today, offers more than a dozen brands of cookies that cater to all walks of life.
Its product portfolio also includes confectionery and snacks.
Parle has a history of 90 years and is one of the leaders in the biscuit business. Together with Britannia Industries, it controls more than 70% of India’s huge biscuit market.
Parle has a strong foothold in rural India. 50% of Parle’s sales come from the rural market, where the company’s cookies are widely consumed.
To compete with Britannia, which has a strong foothold in the urban market, Parle launched a range of premium biscuit brands called Parle Platina.
For the financial year 2021, Parle reported a net profit of Rs 1,220 crore and the profit figure was up 121% from the previous year’s figure.
The following table shows Parle Products’ profit figures for the past three years.
The Chauhan family continues to lead the company and is a key stakeholder in the company. Parle Products is led by Vijay, Sharad and Raj Chauhan.
What about future prospects?
Parle has entered the international market. It has 7 manufacturing plants outside of India.
The company has expanded its presence in developed countries such as the US and Australia, where it meets the needs of large Indian diaspora, and in developing countries such as Nigeria and Cameroon.
It hopes to enjoy the same success it experienced in India, especially with its signature product Parle-G.
#3 Mondelez India Foods (Cadbury)
Mondelez India Foods is the India subsidiary of US-based Mondelez International.
The company was founded in 1948 and manufactures chocolates and cookies under the iconic brand – Cadbury.
India is the land of many festivals and every festival is celebrated with equal enthusiasm and excitement.
Every moment of celebration comes with lots of sweets. Although India is famous for its food and has a number of sweets for every festival, chocolate is the default choice for many occasions. And a brand synonymous with “chocolate” in India is Cadbury.
This is why, it is not surprising that Mondelez is the leader in the chocolate segment and holds over 65% market share.
Its signature product alone, Cadbury Dairy Milk, accounts for 40% of the market share. In the biscuit segment, the company holds 8.5% market share in the cream biscuit segment
The following picture shows its product catalog.
The company is headquartered in Mumbai and has four state-of-the-art manufacturing facilities across the country with a staff of 3,500.
Mondelez is also known for related marketing campaigns. The advertisements quickly caught the attention of the Indian masses, which resulted in a huge demand creation.
On the supply side, the company has built a strong distribution network and their products can be found everywhere in the country.
In terms of shareholding, Mondelez International is the largest shareholder of Mondelez Foods India.
The following table shows the company’s financial position.
Despite the pandemic, sales of Mondelez Foods India increased by 10% YoY to Rs 8,030 crore. The company’s profit has increased from Rs 250 to 1,000 crore, up 300% year-on-year.
#4 Rivet Accessories
The number of two-wheelers in India is increasing, but the number of road accidents is also increasing.
It is estimated that about 3% of GDP is spent on preventing road accidents and repairing the damage caused by it. So the government has regulated the use of helmets for two-wheelers.
The company that benefits from this mission is Studds Accessories.
Studds Accessories is a leading manufacturer of two wheeler helmets and motorcycle accessories in India. Founded in 1973, the company boasts 4 production facilities with a combined capacity of 14 million helmets per year.
In India, it holds a 25.6% market share in the two-wheeler helmet segment and is aiming to grow to 40% by 2025.
Studds is also the largest helmet manufacturer in the world and serves customers in more than 50 countries under the SMK brand.
In terms of the company’s finances, it achieved a revenue of Rs 480 crore in the fiscal year 2021, 15% higher than last year’s revenue. It also recorded a net profit of Rs 74 crore for fiscal year 2021 compared to a profit of Rs 74.5 crore announced in 2020.
Over the past 5 years, the company’s revenue and net profit have grown at a CAGR of 9.2% and 25.2%, respectively.
The following table summarizes Studds Accessories’ finances over the past three years.
The company’s fixed assets have increased from VND 1.5 billion to VND 2.6 billion, however the company’s debt-to-equity ratio is less than 1, which reflects the company’s strong financial position. company.
Studds Accessories has received a nod from SEBI for its IPO and will be launching soon. Shares of the company are trading at Rs 1,750/piece on the unofficial or gray market as it is known.
It has doubled investor wealth in the past 9 months.
Madhu Khurana and Siddharta Khurana are the company’s biggest stakeholders and promoters.
# 5 Patanjali Ayurveda
Powered by yoga guru Baba Ramdev, Patanjali Ayurveda is one of the fastest growing fast moving consumer goods (FMCG) companies in India..
The FMCG giant manufactures cosmetics, Ayurvedic medicines and food products at its manufacturing facility in Haridwar. This location is also the headquarters of the company.
The company boasts a production capacity of Rs 35,000 crore and is planning to expand to Rs 60,000 crore.
Acharya Balkrishna is the largest stakeholder owning 94% of the company’s equity.
The following table shows the financial performance of Patanjali Ayurveda over the past three years.
In fiscal year 2021, the company achieved revenue of Rs 9,870 crore, an increase of 8.2% year-on-year.
The company recorded a profit of Rs 480 crore compared to Rs 420 crore in the same period last year, up 14.2% y/y.
The capacity expansion, changing distribution model, growing number of field executives, and increasing popularity of yoga guru Ramdev will help Patanjali continue to grow and possibly even accelerate its growth. its development in the future.
There have been rumors that Patanjali is expected to launch an IPO soon.
To conclude…
As a retail investor, you cannot directly invest in an unlisted company, however you can do so indirectly.
There are many listed companies holding significant shares in unlisted companies and startups.
So if you want to invest in an unlisted company, you can invest in these companies.
However, don’t forget to check the company’s fundamentals before investing in it.
Happy investing!
Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such.
(This article is provided from Equitymaster.com)
(This story has not been edited by NDTV staff and was automatically generated from the feed provided.)
