Nykaa, Westlife Foodworld, Biocon: Should you invest in stocks of these 7 women-led companies

From Nykaa's Falguni Nayar to Biocon's Kiran Mazumdar-Shaw, a brigade of companies today are being helmed by a group of powerful Indian women. Vinati Saraf Mutreja of Vinati Organics took charge of her father's company and led its performance to unimagined heights. The director of Westlife Foodworld, Smita Jatia is preparing to double business in five-six years.

"Investing in companies led by women is not only a matter of promoting gender equality but also a smart investment strategy. Women-led companies often have diverse leadership teams and tend to focus on long-term growth strategies, which can lead to better financial performance over time. These companies are also more likely to prioritize social and environmental responsibility, which can attract socially conscious investors," said Sonam Srivastava, Founder, Wright Research.

However, she added that it is important to remember that the decision to invest in a particular company should be based on a thorough analysis of its financial performance, growth prospects, and overall market conditions. It is also recommended to diversify your portfolio by investing in a variety of stocks, including those led by women. Women should take an active role in their investment decisions and seek the guidance of financial advisors if needed.

So, if you are an investor on Dalal Street, you might want to consider the stocks of these 7 women-led companies. Some of these stocks have also delivered up to 3,490 per cent return in the last ten years.

1) Nykaa

Falguni Nayar, Founder and CEO of Nykaa needs no introduction. The empress of beauty quit as MD of Kotak Mahindra Capital in 2012, to set up Nykaa and delivered a blockbuster debut on the stock markets—with a valuation of nearly $13 billion.

Shares of Nykaa have been on a roller coaster ride, especially after the lock-in period expiry and bonus issue. The stock has corrected over per cent from its 52-week high of Rs 315.86. Macquarie, in its recent report, initiated its coverage on the beauty e-retailer with an underperforming rating and a price target of Rs 115.

However, Macquarie is positive about the potential of the Indian beauty market as rising per capita income drives a shift from the basic lip and eye-focused products to a skincare regime. The sharp growth in e-commerce though may see moderate in the near term due to a high base.

2) Westlife Foodworld

The managing director of Westlife Foodworld, Smita Jatia, is aiming to double the store count over the next four to five years. She expects the business to grow the business by 15-20 per centCAGR by FY28.

Jatia has been an active member of the McDonald’s India team since the commencement of its operations and over the years, has handled various roles within the organization.

Shares of Westlife Foodworld have delivered over 47 per cent return in the past one year. Prabhudas Lilladher remains positive on the structural story for Westlife given guidance of 580-630 stores by CY27 (35/40 in FY23), huge scalability in fried chicken given new launches like chicken wings and leadership in Taiwan (in plant marination), strong start in Tier 2/3 with 1.5x growth vs metros.

3) Biocon

Kiran Mazumdar-Shaw is regarded as an unconventional thinker with many firsts to her credit. When the 25-year-old Shaw was setting up Biocon, her friends were getting married. It was her father who encouraged her to stay the course.

Cut to 2023, Biocon is now India's largest biopharmaceutical company, started in the garage of Mazumdar-Shaw's rented home in Bangalore, with a seed capital of Rs 10,000.

Shares of Biocon have delivered over 390 per cent return to its long-term shareholders in the last 10 years. Sharekhan, in its recent report, said that the consolidation of Viatris’ biosimilar business will add to the growth of Biocon Biosimilars in Q4FY2023. Going forward, it will
immensely help in revenue growth and expansion in profitability margins.

4) Vinati Organics

In 2006, Vinati Saraf Mutreja joined Vinati Organics as executive director. Till then, the only product of consequence Vinati Organics made was IBB (iso butyl benzene), a raw material for the pharma industry. Her biggest challenge was to turn around their ATBS plant. She quickly found a consultant and the pain points were identified. Today, the company is the world’s largest manufacturer of IBB and ATBS.

Vinati Organics, which had a Rs 20 crore market cap when Saraf joined in 2006, is now worth over Rs 19,200 crore on the bourses.

Shares of Vinati Organics have delivered multi-bagger returns to its shareholders as the stock has zoomed over 3,490 per cent in the last 10 years. "Vinati Organic is one business that has compounded its way to the top in the last 5 years. The company has captured the market with its unique product and its robust financial management," said Srivastava.

5) Welspun India

Dipali Goenka, CEO and MD of Welspun India started with a design studio and, in 2003, launched Spaces, a premium bed and bath brand. The global financial crisis in 2008 had her move to the textile business.

Her husband B.K. Goenka, Chairman of Welspun Group, told her that she would not be treated differently at work. Welspun India, under her leadership, has moved into top gear in two key areas—digitisation and upskilling its workforce. She plans to increase the number of multi-brand outlets to 50,000 by 2026.

Notably, the shares of Welspun India have delivered over 870 per cent return in the last 10 years. Sharekhan believes that Welspun’s near-term performance is affected by weak demand in the international markets and higher inventory piled with global retailers. The export demand will take another two quarters to revive, while domestic consumer business and branded business will continue their strong run on a low base.

It added that the company is creating strong growth drivers (domestic consumer business, globally branded business, flooring business and advanced material business) to achieve consistent growth in the long run.

6) Metropolis Healthcare

Apart from being the Promoter and Managing Director of Metropolis Healthcare, Ameera Shah is also a financial investor and a business mentor.

She is passionate about women's leadership and empowerment and has set up Empoweress, a not-for-profit platform for women-led businesses to find advice, mentorship and micro-funding. Launched in 2017, the platform incubates more than 50 women-led businesses already.

Shares of Metropolis Healthcare have corrected over 49 per cent from its 52-week high of Rs 2,565.40, hit on April 12, 2022. JM Financial has a 'Buy' call on Metropolis Healthcare with a target price of Rs 1,775. It believes that the stock’s risk-reward continues to be favourable post the steep correction, overstated concerns and improving outlook.

7) Birlasoft

Amita Birla is the Co-Chairman of the CK Birla Group, and the Chairman of Birlasoft Limited. She has also overseen the merger of KPIT's IT business with Birlasoft. She has taken several transformative initiatives within the Group, including a move towards a more effective workforce, a strong brand positioning and people processes which are globally aligned.

Shares of Birlasoft hit a 52-week high of Rs 501.65 on April 11, 2022, and a 52-week low of Rs 250.35 on February 3, 2023. The stock has corrected 44 per cent from its 52-week high.

"Birlasoft is another women-led company in the IT services and consulting space. This company is showing good signs of profitability & efficiency and the stock is undervalued at the moment," said Srivastava.

Also read: How These Successful Women Entrepreneurs Broke the Bias