There’s a certain kind of company that doesn’t make headlines every week but quietly keeps building, adding capacity, entering new segments, and compounding shareholder wealth over years.
Many companies from the Murugappa Group have that kind of reputation.
Founded in 1900 and headquartered in Chennai, the Murugappa group is one of India’s oldest business conglomerates.
The group spans an unusually wide range of sectors, from engineering, electrical equipment, abrasives, financial services, agriculture, fertilisers, sugar, and mobility solutions.
That diversity isn’t accidental. It’s a deliberate structure that insulates the group during downturns in any one sector while giving it multiple engines of growth at any given time.
What makes Murugappa interesting right now isn’t its history but what’s coming next. Across several of its listed companies, we can see their push into new markets and technologies.
For instance, CG Power is investing to expand production capacity, while Tube Investments is putting money into its fine blanking business, and the group is exploring a Rs 6,500 crore semiconductor assembly and testing project.
These aren’t vague aspirations buried in an annual report. These are funded, structured expansion plans.
For investors who like to get in before the story is fully priced in, Murugappa group stocks offer an interesting angle.
In today’s article, let’s look at five such companies from the group that have the most concrete and compelling expansion plans on the table right now.
#1 Cholamandalam Investment
First on the list is Cholamandalam Investment.
The company, often called as Chola, is the financial muscle of the Murugappa Group.
Founded in 1978, Chola has become India’s prominent financial services provider.
It offers vehicle, home, and personal loans, catering to a wide range of customer needs nationwide.
Its vehicle finance stream is well diversified extending to 1,254 pan-India branches, financing new and used vehicles in commercial, passenger, two-wheelers, and tractor sectors.
It has further diversified into new businesses in the Consumer and Small Enterprises Loans (CSEL), Secured Business Personal Loans (SBPL), and SME sectors.
Furthermore, it has two subsidiaries: Cholamandalam Securities and Cholamandalam Home Finance.
Coming to its financials, the company’s sales and net profit have grown at a compounded annual rate (CAGR) of 24% and 32% respectively over the past 5 years.
Its return ratios have been commendable too, with return on equity (ROE) averaging 18% during the same time.
Cholamandalam Investment – Financial Snapshot
| Particulars (Rs m) | Mar-21* | Mar-22* | Mar-23* | Mar-24* | Mar-25* |
| Interest Earned | 95,794 | 101,408 | 128,841 | 191,396 | 258,460 |
| Growth | – | 6% | 27% | 49% | 35% |
| Operating Profit | 50,039 | 58,431 | 71,361 | 99,089 | 133,515 |
| Margin | 52.2 | 57.6 | 55.4 | 51.8 | 51.7 |
| Net Profit | 15,209 | 21,535 | 26,649 | 34,201 | 42,627 |
| Net Margin | 15.9 | 21.2 | 20.7 | 17.9 | 16.5 |
| ROE | 15.9 | 18.4 | 18.7 | 17.6 | 18.2 |
| ROA | 2.1 | 2.6 | 2.4 | 2.2 | 2.1 |
Data Source: BSE, Equitymaster
Going forward, the company is set to benefit from the rate cycle as it appears to turn in its favor in vehicle finance (lower early defaults and broad growth across subsegments). The management expects this to be a material driver of NCL reduction in FY27.
Further, the company is transitioning from containment to growth.
Gold loans is the group’s most expansionary bet (exclusive branches + experienced hiring + IT/AI investments), which is likely sustaining higher opex intensity near-term but could potentially support yield and diversification going forward.
#2 Tube Investments of India
Second on the list is Tube Investments of India.
The company is a leading engineering firm specialising in the production of precision steel tubes and strips.
Based in Chennai, India, its engineering segment focuses on cold-rolled steel strips and precision steel tubes, including cold-drawn welded tubes and electric resistance welded tubes.
In 2023, the company established a greenfield precision steel tube manufacturing facility with an investment of Rs 2.1 bn.
This facility, located in the western region of India, is designed to produce a diverse range of precision steel tube products.
In 2021, Tube Investments also acquired a controlling stake in CG Power and Industrial Solutions, which is among the top five players in India in both of its operating segments.
Coming to its financials, Tube Investments’ sales and net profit have grown at a CAGR of 33% and 28% respectively over the past 5 years.
Its ROE and ROCE have averaged 23% and 31% during the same period.
Tube Investments – Financial Snapshot
| Particulars | Mar-21* | Mar-22* | Mar-23* | Mar-24* | Mar-25* |
| Revenue | 60,833 | 124,474 | 149,641 | 168,903 | 194,647 |
| Growth | 28.1 | 104.6 | 20.2 | 12.9 | 15.2 |
| Operating Profit | 7,089 | 15,567 | 20,462 | 22,215 | 22,395 |
| Margin | 11.7 | 12.5 | 13.7 | 13.2 | 11.5 |
| Net Profit | 2,857 | 9,676 | 11,584 | 11,973 | 10,543 |
| Net Margin | 4.7 | 7.8 | 7.7 | 7.1 | 5.4 |
| ROE | 12.4 | 31.6 | 29.4 | 23.5 | 19.1 |
| ROCE | 12.9 | 36 | 41.2 | 34.4 | 31.1 |
Data Source: BSE, Equitymaster
Looking ahead, Tube Investments of India aims to expand its market presence by diversifying its offerings and tapping into new opportunities.
Since it remains the market leader in cold drawn welded tubes in India, it continues to be one of the major suppliers of automotive chains and fine blanking products, which is expected to hold in the future.
Further, CG Power is also a leading player across products in both of its operating segments.
What’s more, CG has also ventured into other new business areas, including electric vehicles (EV), medical consumables, contract development and manufacturing operations (CDMO) and electronics.
It is also foraying into outsourced semiconductor assembly and testing (OSAT) through a subsidiary of CG Power.
All this gives a direct proxy benefit to Tube Investments.
#3 Coromandel International
Third on the list is Coromandel International.
Coromandel International is one of India’s leading agri-input companies with a strong presence across fertilizers, crop protection, specialty nutrients, and agri-retail solutions.
The company mainly operates in phosphatic fertilizers and is among the largest players in the segment.
Its key product portfolio includes DAP, NPK fertilizers, crop protection products, specialty nutrients, nano fertilizers, and biological solutions catering to Indian farmers across multiple crop categories.
During FY26, Coromandel commissioned new sulphuric acid and phosphoric acid plants at Kakinada to improve backward integration and reduce raw material dependence.
Coming to Coromandel’s financials, its sales and net profit have grown at a CAGR of 13% and 14% respectively over the past 5 years.
Its ROE and ROCE have averaged 22% and 32% during the same time.
Coromandel International – Financial Snapshot
| Particulars | Mar-21* | Mar-22* | Mar-23* | Mar-24* | Mar-25* |
| Revenue | 141,820 | 191,109 | 296,279 | 220,584 | 240,852 |
| Growth | 8 | 34.8 | 55 | -25.6 | 9.2 |
| Operating Profit | 20,593 | 22,941 | 30,973 | 26,301 | 29,870 |
| Margin | 14.5 | 12 | 10.5 | 11.9 | 12.4 |
| Net Profit | 13,292 | 15,285 | 20,129 | 16,406 | 20,547 |
| Net Margin | 9.4 | 8 | 6.8 | 7.4 | 8.5 |
| ROE | 25.9 | 24.1 | 25.5 | 17.4 | 18.6 |
| ROCE | 36.8 | 33.5 | 36.6 | 25.2 | 26.8 |
Data Source: BSE, Equitymaster
Looking ahead, the company is expanding its crop protection business, nano fertilizer portfolio, agri-retail network, and drone spraying services to strengthen future growth.
The company’s strong distribution network, leadership in phosphatic fertilizers, focus on specialty products, and expansion into high-growth agri-solutions make it a strong long-term play on India’s agricultural growth story.
On top of all this, the government has also demonstrated its financial support to the fertiliser sector via additional subsidies recently.
This, combined with healthy cash accrual and healthy liquidity, enables the company to maintain its net debt-free position going forward.
#4 EID Parry
Fourth on the list is EID Parry.
EID Parry is a leader in the sugar industry with significant presence in ethanol blending.
As of early 2026, the company has significantly expanded its distillery capacity to capitalise on the government’s mandate to reach 20% ethanol blending in petrol.
It has six sugar factories across South India with a capacity to crush 40,800 TCD, generate 140 MW of power and five distilleries with a capacity of 582 KLPD.
The company pioneered the production of ethanol from B-heavy molasses and sugar syrup at its Nellikuppam plant, making it the first sugar manufacturer in India to do so-a process recognized by the National Sugar Institute in Kanpur.
It ensures a sustainable supply of sugarcane molasses, sourcing it from both its own sugar mills and external suppliers, while contributing to cleaner fuels by blending ethanol with petrol.
Coming to its financials, EID’s sales and net profit have grown at a CAGR of 13% and 15% respectively over the past 5 years.
Its ROE and ROCE have averaged 25% and 39% during the same period.
EID Parry – Financial Snapshot
| Particulars | Mar-21* | Mar-22* | Mar-23* | Mar-24* | Mar-25* |
| Revenue | 185,953 | 235,211 | 352,438 | 294,131 | 316,086 |
| Growth | 8.6 | 26.5 | 49.8 | -16.6 | 7.5 |
| Operating Profit | 22,166 | 26,280 | 32,328 | 29,194 | 30,464 |
| Margin | 11.9 | 11.2 | 9.2 | 9.9 | 9.6 |
| Net Profit | 9,998 | 15,737 | 18,277 | 16,176 | 17,725 |
| Net Margin | 5.4 | 6.7 | 5.2 | 5.5 | 5.6 |
| ROE | 21.9 | 29.6 | 30.1 | 23 | 22.4 |
| ROCE | 38.2 | 42.3 | 46.3 | 34.1 | 34.7 |
Data Source: BSE, Equitymaster
Going forward, the company’s prospects appear steady, driven by growth in ethanol, integrated sugar operations, and its valuable stake in Coromandel International.
The company also benefits from expansion into branded foods and nutrition products. Ethanol blending policies in India could support earnings over time.
#5 Shanthi Gears
Last on the list is Shanthi Gears.
The company manufactures standard and customised gears and caters to a reputed clientele from diversified sectors such as general engineering, steel, cement, railways, power and material handling, among others.
Its product portfolio encompasses a range of customised gear boxes, loose gears, worm gear boxes and helical gear boxes.
Shanthi Gears has manufacturing facilities (including a foundry) in and around Coimbatore, Tamil Nadu.
Tube Investments holds a 70.46% stake in Shanthi Gears. So ever since its acquisition, the company has benefitted from the strong management support and operational synergies derived for being its subsidiary.
Coming to its financials, Shanthi Gears’ sales and net profit have grown at a CAGR of 20% and 31% respectively over the past 5 years.
Its ROE and ROCE have averaged 19% and 26% during the same time.
Shanthi Gears – Financial Snapshot
| Particulars | Mar-21* | Mar-22* | Mar-23* | Mar-24* | Mar-25* |
| Revenue | 2,155 | 3,371 | 4,457 | 5,361 | 6,046 |
| Growth | -11.1 | 56.4 | 32.2 | 20.3 | 12.8 |
| Operating Profit | 352 | 693 | 1,014 | 1,234 | 1,438 |
| Margin | 16.3 | 20.6 | 22.8 | 23 | 23.8 |
| Net Profit | 202 | 425 | 671 | 823 | 960 |
| Net Margin | 9.4 | 12.6 | 15 | 15.3 | 15.9 |
| ROE | 8.5 | 16.3 | 22.2 | 23.8 | 23.8 |
| ROCE | 11.1 | 22.7 | 30 | 31.9 | 32.4 |
Data Source: BSE, Equitymaster
At present, the company has a large pending order book position exceeding Rs 2 bn, supported by demand from both original equipment manufacturers (OEM) and replacement segments. This provides healthy revenue visibility for the next few quarters.
Moreover, it benefits from better absorption of costs as its revenue is expected to scale up, while its periodic cost optimisation measures will also help given strong synergies.
Conclusion
The Murugappa Group is not the kind of conglomerate that chases every trend. It moves deliberately but when it moves, it tends to move with serious capital and a clear plan.
What you’re seeing across these five companies is that kind of intentional expansion: new manufacturing capacity, bets on emerging sectors like EVs and semiconductors, and a steady push into export markets.
For investors, the takeaway is straightforward. These aren’t turnaround stories or speculative plays. They’re established businesses with profitable cores, and the expansion plans layer additional growth potential on top of that base.
As always, investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy Investing.
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