In this article, we will discuss the 10 Best Indian Stocks for Next 10 Years.
India’s strong growth trajectory remains a compelling narrative on the back of remarkable advancements throughout sectors, placing the nation as a formidable player in the global arena. With a youthful population, an ever-expanding digital economy, and a strong and reliable manufacturing base, India continues to reap the benefits of its demographic dividend and embrace innovation to drive sustainable economic development. In the fiscal year 2023-24, foreign portfolio investments came in at INR 3,39,066 crore, with INR 1,71,248 crore seen so far in 2024-25 (as per the release dated September 27 by Press Information Bureau, Government of India). This healthy influx of capital demonstrates the country’s resilience and the attractiveness of its financial landscape.
India’s digital economy has been tagged as one of the fastest-growing in the world, strongly helping the nation’s technological landscape. The government’s Digital India initiative played a critical role in the transformation. The initiatives have increased internet penetration and boosted the broader digital infrastructure throughout the country.
Jamie Dimon’s Views on Indian Economy
As per Jamie Dimon, India remains well-placed to become a $7 trillion economy by 2030 as a result of the digital and physical infrastructure, which continues to attract multinational companies under the governance of Prime Minister Narendra Modi. Jamie Dimon recalled visiting India in 2005 and went on to point out the development the country has witnessed over the years. This development is evident as India continues to attract multinational companies to invest.
Additionally, the Chief Executive lauded the digital and physical infrastructure, which includes the Aadhaar system, GST reforms, easing regulations, etc. Collectively, these are expected to act as growth drivers. Jamie Dimon also highlighted that the growth potential of India remains strongly linked to the country’s liquidity and valuation dynamics. With the world’s fourth-largest stock market, the country saw daily average cash-trading levels increase threefold from the pre-pandemic levels. He also highlighted that India has a demographic edge, which is the main reason for the optimism about India’s long-term growth prospects.
With countries in the West facing challenges related to aging populations and labour shortages, India has a young and dynamic workforce which should become the nation’s most valuable asset. Notably, the next 3 decades hold strong potential for India’s sustained growth and prosperity.
In the recent past, the Chief executive praised India’s boosting financialization of saving, ramping up infrastructure, and allowing more spaces for foreign investment.
India’s Economic Growth Outlook
India has been tagged as one of the fastest-growing economies in the world, with real GDP expected to grow by 6.5% in 2024, as per J.P. Morgan Economics Research. If the International Monetary Fund (IMF) data is to be believed, India is expected to clock a growth rate of 6.1% over the upcoming 5 years. This will make India the world’s third-largest economy by 2027, after the US and China. Indian equity markets touched new all-time highs this year. Apart from the volatility during the general election, the country’s stocks consistently outperformed Emerging Market peers.
Additionally, the large bank highlighted that, since the pandemic-low in March 2020, the blue-chip NSE Nifty 50 saw a whopping increase of more than 200%, with the stock market’s total market cap now standing at ~$5 trillion. This is because investors have become increasingly positive about the nation’s long-term economic growth potential. The traction India’s manufacturing sector is gaining under supply chain diversification, sustainable and pro-industry policies, and improving renewable energy capacity are expected to act as tailwinds. The bank believes that the Indian government has outlined ambitious plans for goods exports to reach $1 trillion annually by 2030, as the country aims to be a top-most alternative for companies that are looking to diversify their supply chains away from China.
A close up shot of a stock ticker reflecting the performance of Indian equity markets.
Our methodology
To list the 10 Best Indian Stocks for Next 10 Years, we did an extensive online search to extract the stocks of Indian companies that trade at the US exchanges. After narrowing down the list, we arranged the stocks in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Indian Stocks for Next 10 Years
10) Sify Technologies Limited (NASDAQ:SIFY)
Number of Hedge Fund Holder: 1
Sify Technologies Limited (NASDAQ:SIFY) provides ICT solutions and services in India and internationally.
Wall Street analysts have tagged Sify Technologies Limited (NASDAQ:SIFY) as a key player in India’s burgeoning digital landscape. It continues to expand its infrastructure and services, with a healthy capital allocation to aid digital transformation initiatives throughout enterprises and government entities. The company continues to focus on maintaining fiscal discipline and investments in network and data center capacity expansion.
Sify Technologies Limited (NASDAQ:SIFY) has been transitioning from project-based to annuity-based revenue in the digital services segment. Moving forward, the company plans to make investments focused on expanding its network and data center capacity. As of now, Sify Technologies Limited (NASDAQ:SIFY)’s strategic investments in infrastructure should continue to capture the growing demand for digital transformation in India.
Market veterans believe that demand for data center services in India is being led by hyperscalers and enterprises, and Sify Technologies Limited (NASDAQ:SIFY) possesses a strong pipeline for data center capacity expansion in various cities. The company remains committed to helping the digital transformation needs of the nation’s enterprises and government entities.
Given its strong foundation of network and data center services, together with a focus on expanding its digital services capabilities, Sify Technologies Limited (NASDAQ:SIFY) remains well-placed to exploit the opportunities.
By the end of Q2 2024, 1 hedge fund included Sify Technologies Limited (NASDAQ:SIFY) in its portfolio, as per Insider Monkey’s database.
9) Yatra Online, Inc. (NASDAQ:YTRA)
Number of Hedge Fund Holder: 4
Yatra Online, Inc. (NASDAQ:YTRA) operates as an online travel company in India and internationally.
Market experts believe that Yatra Online, Inc. (NASDAQ:YTRA)’s corporate travel segment should continue to aid its revenue growth in the near term. Moving forward, the company plans to maintain its focus on strategic initiatives, which include an emphasis on expanding the corporate travel and MICE (Meetings, Incentives, Conferences, and Exhibitions) businesses, streamlining the operations, and looking for potential acquisitions.
Yatra Online, Inc. (NASDAQ:YTRA) has been actively pursuing organic and inorganic growth opportunities, mainly in corporate travel. The company highlighted that a restructuring process, in a bid to simplify the corporate structure, remains underway. This might take ~6 months – 12 months.
While the focus is on tech-enabled and innovation-driven strategies for improvement in market share in the B2C segment, Yatra Online, Inc. (NASDAQ:YTRA) is optimistic regarding the growth potential in both the corporate travel and MICE markets. The company earmarked $20 million from IPO proceeds for expected acquisitions. The company announced that it entered into a definitive agreement for the acquisition of 100% of Globe All India Services Limited. This acquisition should significantly expand Yatra Online, Inc. (NASDAQ:YTRA)’s corporate customer base.
Globe will be bringing 360 corporate travel customers to Yatra Online, Inc. (NASDAQ:YTRA)’s existing portfolio of ~850 customers, reflecting over 40% growth. Apart from increasing the company’s market share, this also offers an opportunity for enhanced operational efficiency. Moreover, the integration of Globe’s services into Yatra Online, Inc. (NASDAQ:YTRA)’s platform is expected to have a positive impact on the latter’s financials.
HC Wainwright reiterated a “Buy” rating on the company’s shares, issuing a price target of $4.00 on 3rd September.