Goldman Sachs has expressed strong optimism about India’s growth prospects, identifying the country as one of the fastest-growing economies in the medium term. The global brokerage highlighted that after a decade-long downcycle, India’s earnings have stabilized, showing a consistent mid-teen profit growth momentum that could last until 2030. Over the past five years, Nifty’s earnings growth and market cap have achieved an 18% compound annual growth rate (CAGR).
Goldman Sachs expects the profit pool to shift toward investment cyclicals, which include sectors like automobiles, real estate, chemicals, and industrials, predicting significant profit share growth in these areas. The brokerage also forecasted substantial absolute growth in consumer cyclicals.
As part of its growth strategy for India, Goldman Sachs issued a ‘buy’ call on 20 stocks:
- Reliance Industries (RIL)
- Larsen & Toubro (L&T)
- NTPC
- Mahindra & Mahindra (M&M)
- UltraTech Cement
- Power Grid
- Adani Ports
- IndiGo
- Eicher Motors
- Havells
- Polycab
- Ashok Leyland
- Phoenix Mills
- Uno Minda
- Hitachi Energy
- Astral
- Embassy REIT
- Kajaria Ceramics
- Blue Dart
- Amber Enterprises
These stocks reflect sectors that are expected to benefit from India’s structural growth story, with strong earnings potential over the coming years.
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