Multibagger stocks:
HDFC Bank, Bharat Dynamics, JK Cement,
Titan among Goldman Sachs' India multibagger stock list; check
all names
Produced by: Harshita Tyagi
Designed by: Mohsin Shaikh
Indian equities have the potential to deliver higher returns compared to other emerging and developed markets, supported by favorable demographics, ongoing reforms, and increasing digitalisation that is formalising the economy, according to Goldman Sachs
Indian equities to deliver
higher returns
Goldman Sachs conducted an extensive examination of 6,700 stocks across 10 major markets to identify '10-baggers', meaning stocks that have generated at least 10 times their initial investment within a rolling five-year period over the past 20 years. Among these markets, India stood out with the highest proportion of multibagger stocks
India delivers more
multibaggers than any
other EM
multibagger stock list
According to Goldman Sachs, More than half (54%) of the NSE 500, consisting of 269 stocks, achieved 10-bagger returns within a rolling five-year period over the past two decades. This was significantly higher than the average of 30% for emerging markets and 20% for developed markets
Multibagger stocks
in NSE 500
The 269 multibagger stocks highlighted by Goldman Sachs have these six traits in common: High realised growth rates, High capital return-ratios, Midcap/Smallcap bias, Inexpensive starting valuations, Domestic sector orientation, and High promoter holding. According to the foreign brokerage, India offers compelling long-term beta and outsized alpha opportunities within the EM basket, having delivered the largest proportion of multibaggers
Traits of multibagger stocks
"With India's strong historical track record of outsized alpha, we delve into multibagger stocks, specifically focusing on stocks that have delivered at least 10x returns and study their common traits in the subsequent section," Goldman Sachs said, adding that the stable domestic macro environment in India, inflation and interest rates reaching their peak and a manageable current account among other factors support the projection of mid-teen earnings growth over the next two years
Mid-teen earnings growth
over next 2 years
Goldman Sachs sees KPIT Technologies, Devyani International, FSN E-Commerce Ventures (Nykaa), Bharat Dynamics, Kajaria Ceramics, and Bharat Forge among 35 stocks in its India Midcap multibagger list, which satisfy at least four of six traits that it identified with multibaggers of the past. The list also includes Jubilant Foodworks, Oberoi Realty, Syngene International, JK Cement, Bata India, Kansai Nerolac, and VIP Industries among other stocks
GS Midcap multibagger list
Goldman Sachs’ midcap multibaggers basket of 35 stocks generated an 18% return on equity (ROE) and is projected to log sales growth of 20% and earning growth of 38% CAGR over the next 3 years. Goldman Sachs said its basket outperformed Nifty by 18% and BSE200 by 15% since 2020
Midcap multibagger
stocks list
The 25 stocks in the Goldman Sachs India Largecap Compounders basket offer expected sales growth of 17% and earning growth of 26% CAGR over the next 3 years, suggesting an attractive growth/valuation profile, said Goldman Sachs. The list includes HDFC Bank, ICICI Bank, State Bank of India, Bharti Airtel, and Bajaj Finance among other stocks
GS India Largecap
Compounders
Goldman Sachs also has Kotak Mahindra Bank, L&T, Maruti Suzuki India, Titan, Ultratech Cement, M&M, Adani Ports, Siemens, Varun Beverages, Eicher Motors, BEL, Apollo Hospitals among other stocks in its India largecap multibagger list
Largecap multibagger
stocks list
Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Business Today. Investors should consult their financial advisors before taking any position