Indian markets have outperformed the global markets in recent past and this trend might continue for a minimum of 2 to 3 decades. The reason behind this exceptional growth is the immense growth potential that India has, being a developing country. Amid huge volatility, we have identified some promising stocks which are fundamentally sound and are expected to yield multiplied returns in the coming decades. It is important to note that, we have selected these stocks with a long-term perspective after through fundamental analysis through our share market courses online and they should not be considered as tips.
1. Deepak Nitrite:
Deepak Nitrite is one of the leading manufacturers of basic, fine, and speciality chemicals. With its strong, powerful positioning, it caters to over 700+ clients on 6 continents with 100+ products. Over the past few years, Deepak Nitrite has shown terrific growth in both revenue and profitability.
- Deepak Nitrite is the only one among the 40 Indian companies awarded with the responsible care logo. This is an immense achievement as a business and boosts investor confidence.
- It was even recognized by Forbes Asia as one of the top 25 wealth creators.
- It is a supplier to some of the world’s leading companies like HUL, BAYER, Reliance, Loreal, etc.
2. Godrej Properties
Godrej Properties, the real estate development arm of Godrej Group, is one of India’s most successful conglomerates. With its lowest bank funding cost, and increased market share in the NCR (National Capital Region), the company has launched several projects pan and across India.
Godrej Properties is trading at a huge discount right now. But the good thing is that it has consistently been respecting the 200-week EMA and SMA. The selling volumes are continuously declining which indicates that the selling is exhausted giving an excellent opportunity to buy, thus making the risk-reward ratio highly favourable.
3. Bajaj Finance
Bajaj Finance, which needs no introduction is one of the largest leading Non-Banking Financial Companies (NBFC) in India. It is the financial arm of the Bajaj Group. With a strong distribution network of 3504 branches across India, it holds a strong market position in SME (Small and medium-sized enterprises) lending, rural lending, commercial lending, etc.
- Amongst the NBFCs in the industry, Bajaj Finance has recorded the lowest Non-Performing Assets (NPA) which is a highly positive sign for any bank or NBFC.
- Bajaj Finance has announced the launch of two-wheeler vehicle financing for other brands by Q2 of FY23.
4. Asian Paints
“This Diwali let’s paint our entire home!”
“Hey, we have our sister’s marriage the next coming month. So, you need to paint our entire house fabulously!”
“Want to renovate our home and add in some cute interiors this Diwali”
These are some of the conversations which happen during festivals and marriages. Are we right?
Regarding the paint sector, with a dominant market share of more than 50%, Asian paints are like the “Pita Ji of the paint industry.” Asian paints generate 80% of its revenue from decorative paints. Lost in a little thought about where the rest 20% comes from?
Let us help you 😊 “It comes from industrial paints and international operations.”
Note: Asian paints also deliver services in interior design and home improvement under a different brand name.
5. Laurus Labs
Laurus labs, one of the leading API manufacturers has grown from a one-product company in 2010 to a business with 60+ commercial products in 2020. With 116 patents, and a strong R and D team, Laurus Labs has cracked the code of creating high-quality affordable medicines. Said all this, Laurus Labs is undoubtedly going to create a growth story in the pharmaceutical and biotechnology sector.
Titan, known to be one of the favourite stocks of the late legendary investor Rakesh Jhunjhunwala (right from the start of his investment journey), has been a consistent compounder. With 89% of its revenue coming from the jewellery segment, Titan is the largest branded jewellery company and 5th largest watchmaker company in India. It has dominated various sectors and built market-leading brands like Tanishq and Titan Eye+. Below are some of the major reasons why Titan stayed strong for 28 years and will stay strong in the coming years.
- Continuous innovation in jewellery with its impeccable fashion sense.
- CaratLane synergy benefits in jewellery and diamond segments.
- High effective cost-controlling measures.
Note: By combining its expertise, fashion, and technology, Titan is now looking to embark on a new journey in the watch segment with Titan Smart.
7. ICICI Bank (MC)
“Just like our human body can’t function without a heart, it is impossible to imagine economic growth without banks.”
Banks play an immense role in the development of the country. ICICI Bank, the second largest private bank in India has its wings in retail banking, wholesale banking, and various insurance activities through its subsidiaries. With an asset balance of 12Trillion INR and a loan book size of more than 8.5 trillion INR, the bank has a network of 5300 branches and 15,200 ATMs across the country. With this, we can tell that ICICI bank is one of the best-placed private sector banks.
Note: ICICI bank has an excellent EPS of 94, indicating a strong earnings profile.
8. Vedant Fashions
“This birthday, let me pick up an Indo-Western ethnic wear!”
“Need a new ethnic dress for this festival” (Happens for all the festivals, right? 😊🤣)
“I need a designer outfit for my wedding!”
Synonymous for its flagship brand name Manyavar, Vedant Fashions is one of the largest players in the Men’s Wedding Wear and Celebration Wear segment in India. It is a one-stop destination with a wide spectrum of product offerings for all occasions. With a projected CAGR growth rate of 18-20% CAGR by 2025, Vedant Fashions is going to lead the forefront of this men’s fashion segment.
These stock picks are from our perspective. We would request you do further research via a share market courses online and contact your financial advisor before investing! If you don’t have a financial advisor, you can always get back to Goela School of Finance for the advice you seek or a share market courses online.