Mar 20, 2024
By: katya.bellamkonda@timesinternet.in
A volatile market makes it tough for long-term investors to take stock. American investment bank Jefferies has recently released a report with eleven Indian stock ideas that could deliver a 15-20 per cent compounded annual growth rate (CAGR) over the next five years.
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As the capex cycle turns, four stocks can benefit from it and see good growth, says the research firm. Among them are construction, infrastructure and cement companies.
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The capex push-related stocks that can see growth include construction major Larsen & Toubro, real estate major Macrotech (Lodha), infra company JSW Energy, and cement major Ambuja Cements.
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“India's capex cycle has turned from its FY20 bottom, and should last another over 5 years as the housing and corporate capex cycle play out,” says Jefferies.
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As the Indian government’s manufacturing push theme plays out, a key beneficiary could be Amber Enterprises, the research firm says. Core competency in ACs and diversification into components, with support from the PLI scheme, can yield over 36% earnings CAGR over FY24-30, it adds.
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A reform in state-owned enterprises has aided growth in State Bank of India stocks. Its loan growth is strong and return on assets is improving. “Improving investor perception can drive some rerating,” says Jefferies.
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SBI as well as Axis Bank can gain from another theme that may play out — which is the financialization of savings.
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Two service sector stocks can grow from growing penetration and they are Max Healthcare and Zomato.
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Also calling them bottom-of-the-pyramid ideas, Bharti Airtel and TVS can also gain from a possible rise in telecom prices as well as consumers’ transition to e2W, adds Jefferies.
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The content on this website is for informational purposes only and is not investment advice.
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