The Indian government has set a roadmap to move the economy towards a $5 trillion milestone through a multifaceted approach. Key initiatives include promoting a digital economy, advancing technology-driven development, facilitating the transition to sustainable energy, and implementing climate action plans.
Additionally, Goldman Sachs has issued a ‘buy’ rating on several stocks that it believes will be crucial to India’s growth story. These stocks encompass various sectors, offering investors a wide range of exposure to different facets of the economy.
Collectively, these stocks illustrate India’s growth potential, featuring leading companies in sectors such as energy, construction, automotive, aviation, infrastructure, real estate, consumer goods, and logistics, all positioned to gain from the country’s economic progress.
Goldman Sachs has noted that India’s earnings have been gradually stabilising over the past few years, with mid-teen profit growth momentum emerging after a prolonged downturn, and this trend is expected to persist until 2030.
This positive outlook indicates a more stable earnings environment, which is crucial for attracting both domestic and international investors.
Listed below are the few stocks to watch out for for the next 10 years:
Havells India Limited
With a market cap of Rs. 1.21 lakh crores, the shares of a leading Fast Moving Electrical Goods (FMEG) company moved up by 1.4 percent to Rs. 1,956.6 in the morning trading session of Thursday.
Havells India’s Electricals segment currently has a market size of Rs. 1.25 lakh crore, with expectations for a 60 percent growth, reaching Rs. 2 lakh crore in the next five years.
Additionally, the company’s Electronics segment is projected to expand by 75 percent, increasing from Rs. 1 lakh crore to Rs. 1.75 lakh crore over the same period.
Havells India plans to invest Rs. 1,000 crore in FY25, primarily to enhance production capacities and explore the manufacturing of AC compressors.
This substantial investment will be directed toward setting up of new capacities for cables, refrigerators, lighting, and fans, aimed at addressing rising demand and optimising production efficiency.
In Q1 FY25, the company reported a growth of around 20 percent YoY to Rs. 5,806 crores, and the net profit jumped by nearly 42.2 percent YoY to Rs. 408 crores.
Havells India Limited is a manufacturer of consumer electrical/electronics and power distribution equipment, offering a wide range of products including circuit protection switchgears, cables, solar products, fans, LED lamps, water heaters, coolers, and various domestic appliances like air purifiers, water purifiers, ACs, televisions, washing machines, and refrigerators, catering to household, commercial, and industrial needs.
UltraTech Cement Limited
The cement flagship company of the Aditya Birla Group, UltraTech Cement Limited is engaged in the business of manufacturing and sale of Cement and Cement-related products. It is India’s largest manufacturer of grey cement and ready-mix concrete, and one of the top manufacturers of white cement.
With a market cap of Rs. 3.28 lakh crores, the shares of the third largest cement producer in the world moved up by nearly 1 percent to Rs. 11,455 in the morning trading session of Thursday.
During Q1 FY24-25, grey cement capacity expanded by 8.7 MTPA, taking the total grey cement capacity of the company to 149.5 MTPA in India.
As of FY24, the company’s grey cement capacity stood at 140.8 MTPA, with an aim to achieve a 157 MTPA capacity by FY25, 168.8 MTPA in FY26 and 183.5 MTPA by FY27. the company also plans to spread its presence across 70 locations across the country by FY27.
Over the next three years, UltraTech aims to invest a total of Rs. 32,400 crore, with a goal of reaching a capacity of 200 MTPA by 2028.
UltraTech plans to invest Rs. 9,500 crore in capex for FY25 alone. This is part of a larger strategy to increase its cement production capacity to 157 million tonnes per annum (MTPA) by FY25.
In Q1 FY25, the company reported a growth of around 1.9 percent YoY to Rs. 18,070 crores, and the net profit jumped marginally by nearly 0.3 percent YoY to Rs. 1,695 crores.
Adani Ports & Special Economic Zone Limited
Adani Ports & Special Economic Zone Limited (APSEZ) is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi-product Special Economic Zone (SEZ) and related infrastructure contiguous to the Port at Mundra.
With a market cap of Rs. 3.04 lakh crores, the shares of India’s largest private port player moved up by 1.2 percent to Rs. 1,424.95 in the morning trading session of Thursday.
APSEZ plans to allocate between Rs. 10,500 crore and Rs. 11,500 crore for FY25. The capex will primarily support the expansion of its domestic port facilities and the growth of its logistics business. This includes ongoing projects and potential acquisitions, such as the Gopalpur Port, which is expected to contribute significantly to cargo volume growth.
APSEZ anticipates cargo volumes of 460-480 million metric tons (MMT) in FY25, with expected revenues ranging from Rs. 29,000 crore to Rs. 31,000 crore.
The company maintains a healthy liquidity position with cash flows projected between Rs. 11,000 crore and Rs. 14,000 crore for FY25 and FY26. This supports its capex plans while managing repayment obligations effectively.
In Q1 FY25, the company reported a growth of around 21 percent YoY to Rs. 7,560 crores, and the net profit jumped by nearly 46.6 percent YoY to Rs. 3,107 crores.
InterGlobe Aviation (IndiGo) Limited
Incorporated in 2004, InterGlobe Aviation Limited is in the low-cost carrier (LCC) segment of the airline industry in India, with principal activities comprising air transportation which includes passenger and cargo services and providing related allied services including inflight sales.
IndiGo aims to increase its international destinations from 20 to 40 by the end of FY25. This expansion will target emerging markets that are currently under-served by Indian airlines, with potential new routes including Mauritius and Al Ain.
The airline plans to significantly enhance its cargo capabilities. This includes the introduction of wide-body aircraft starting in 2027, which will allow for increased cargo capacity.
Currently, IndiGo operates three freighter aircraft and anticipates a substantial growth in cargo tonnage, which increased by 20.2 percent in FY24.
With a market cap of Rs. 1.82 lakh crores, the shares of the largest airline in India moved up by 1 percent to Rs. 4,751 in the morning trading session of Thursday.
In Q1 FY25, the company reported a growth of around 17.3 percent YoY to Rs. 19,571 crores, but the net profit declined by nearly 11.7 percent YoY to Rs. 2,727 crores.
Hitachi Energy India Limited
The company engages in various business sectors, such as grid automation, grid integration, high-voltage products, and transformers. Hitachi Energy India provides a wide range of products, systems, software, and services throughout the entire power value chain.
Previously known as ABB Power Products and Systems India Ltd., Hitachi Energy specializes in the production of transformers and large-scale power transmitters.
To address India’s increasing energy demand and the drive for renewable energy generation, the company aims to enhance its local operations by establishing additional global capability centres (GCCs).
At present, Hitachi Energy is considering Hyderabad and Pune as potential locations for these capability centres.
The company’s management has consistently highlighted the importance of globally supporting entities in addressing semiconductor shortages. Hitachi Energy is actively involved in the semiconductor sector, concentrating on advancing its semiconductor technology to boost competitiveness and capacity.
The company has achieved a significant milestone by introducing the first 300 mm wafer for IGBT (Insulated Gate Bipolar Transistor) power semiconductor devices.
In Q1 FY25, orders totalled Rs. 2,436.7 crore, more than doubling compared to the previous year. The renewable segment has been a key driver, with studies across utilities and industries leading to nearly 2.5 GW of grid integration projects, as well as several power quality projects.
Additionally, expansion, upgrades, and enhanced efficiency have resulted in orders from existing power plants. Orders have also been received from distribution utilities for the upgrade of digital solutions to improve real-time visibility and network management.
With a market cap of Rs. 63,811 crores, the stock moved up by nearly 4.4 percent to hit a new 52-week high at Rs. 15,200 in the morning trading session of Thursday.
In Q1 FY25, the company reported a growth of around 27.6 percent YoY to Rs. 1,327 crores, and the net profit jumped by nearly 400 percent YoY to Rs. 10 crores.
Written by Shivani Singh
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