We reached out to money managers to filter out P20 (20 portfolio) stocks as the India growth story, which is the best among large economies, is getting wider attention and appreciation with the G20 presidency.
Sonam Srivastava, smallcase manager and founder of Wright Research1) Infosys
The IT sector has been India’s flagship in showcasing its global prowess. Companies like Infosys and TCS reflect the country’s strength in digital solutions, IT services, and software development, aligning with digital discussions in G20.
2) Tata Motors
As India pushes for electric vehicles, Tata Motors, with its growing EV segment, stands out. Their global presence, especially with the Jaguar Land Rover brand, showcases India’s capability in high-end manufacturing and innovation.
3) TCS (Tata Consultancy Services)
Just like Infosys, TCS also reflects India’s strength in the world of technology.
4) JSW Steel
With the focus on green steel and decarbonization, JSW Steel, one of India’s leading steel producers, represents the country’s metals sector’s sustainable approach. Their global acquisitions and ventures also signify India’s expanding footprint in the global metals market.
5) Dr Reddy’s Laboratories
Dr Reddy’s embodies India’s role as the ‘pharmacy of the world’. Especially in global health discussions and the recent pandemic, India’s pharmaceutical industry has played a crucial role in providing affordable medicines and vaccines to various countries.
Ashish Kumar, smallcase manager and founder of Stoxbazar
6) Reliance Industries
Green energy transition and discussions at G20 are expected to benefit India’s green energy initiatives and companies involved in clean energy production. Companies like Reliance Industries (RIL), with a focus on green energy and sustainability, may see benefits.
7) Tata Power
India aims to have 500 GW of non-fossil fuel-based capacity by 2030, with emphasis on green grids and renewable energy. India co-founded the International Solar Alliance with France, emphasizing green finance and technology. Utility companies like Tata Power may benefit from investments in renewable energy infrastructure.
India is positioning itself as a hub for fast electric chargers, EV batteries, and battery recycling.
Aggressive targets have been set for EV adoption in various vehicle segments. Companies in the EV ecosystem like Tata Motors, Mahindra & Mahindra, besides battery manufacturers, may benefit.
9) G R Infraprojects
Foreign investment and NRI interest are expected to increase during India’s G20 presidency.
Economic uptrends and sustainable development initiatives are also anticipated. Real estate developers and companies may see increased investments.
10) Hindustan Aeronautics
India’s space sector is growing rapidly, with a significant number of private space companies.
The sector is attracting investor interest and foreign investment.
Divam Sharma, smallcase manager and Founder at Green Portfolio
11) Marksans Pharma
Marksons, which is mainly into drugs for pain management and cardiovascular treatment, is looking to acquire companies to increase its presence in global markets. As the new plant is expected to run at higher utilisation levels, the top line and margins can see significant expansion from current levels.
12) Sterlite Technologies
Sterlite is one of the biggest beneficiaries in India’s 5G transformation. With a strong order book of Rs 11,000 crore, diversified revenue base, industry tailwinds, and company execution, STL is one of our 5G theme-oriented picks.
13) Orient Paper and Industries
The company has continued to show revival on the back of pulp capacity enhancement and new recovery boilers. The steps taken by the company helped in increasing the realization and reduction in raw material costs. The paper industry is trading at a PE of 17x, whereas Orient Paper is available at a PE of 8x.
14) Piramal Pharma
Piramal Pharma is an economically sound business with high barriers to entry. The stock is deeply discounted compared to its peer at current valuations. The company has three segments, forecasted to witness early double-digit growth over the next three years. The innovations management has brought about in regards to its B2C segment will be a pillar for growth.
15) Rain Industries
Rain Industries is one of the world’s largest producers of materials used as raw materials for aluminium. The demand for aluminium is expected to witness robust growth from here onwards.
Arvind Kothari, smallcase manager & Founder, Niveshaay
16) Shivalik Bimetal Controls
The company is a prominent supplier of critical components for EV, Energy Storage Devices, Switchgear, Electrical Appliances, and Smart Meters. It specializes in manufacturing shunt resistors, which are electrical components responsible for regulating the flow of electrical current within a circuit. There are only 4-5 low TCF Shunt Resistors manufacturers globally, with Shivalik being one of them.
17) Waaree Energies
With a current capacity of 11 GW, Waaree is India’s largest solar PV module manufacturing company. Considering it had only 2GW capacity in 2021, it has exponentially increased its capacity because of rising demand and healthy order book. Majority of this order book is from the USA, which showcases its global competitive strength across Chinese peers.
18) Usha Martin
Usha Martin is market leader in steel wire ropes, with 60% market share in India. Steel sourcing and power cost is comparatively cheaper in India compared to China, Europe, making India competitive. It operates in a strong entry barrier market as product approval isn’t easy, cost of breakdown is very high, and safety is of utmost importance. With a presence in international markets, the company is keen to expand in other regions like the US, Canada, South America and Germany. EBITDA margin expansion due to changes in product mix and presence in international markets make this a beneficiary.
19) Gokaldas Exports
In the textile value chain, the apparel side of the business has benefited significantly from China Plus One and the supply side consolidation trend during the pandemic. India has become a preferred destination because of its presence in the entire cotton value chain, which reduces lead time, increases speed and pre-requisite for apparel brands. During the pandemic, India got many such opportunities, and a few companies, like Gokaldas Exports grabbed these and found a pivotal place in the global value chain.
With the government focusing on making India the textile export hub, this company would participate in the global market opportunity that comes to India.
20) Centum Electronics
Centum is one of the leading players in the industry with a presence in Aerospace, Defence, Space, Transportation, Healthcare, etc., with 72% of their revenue generated from exports to Europe, the UK, North America, etc., with global customers like Thales, Rafael, Alstom, GE, ABB, etc. They have experienced a significant increase in order books and are focusing on further improving margins by increasing operational efficiency. They have observed robust growth in new multinational customers from emerging sectors like clean energy, electric vehicles, and hydrogen fuel cells.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)