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The Perfect Stock in the Rebirth of India

Aug 8, 2019

Tanushree Banerjee, Editor, The 5 Minute Wrapup

Inventions have played a very important role in making our lives easier. What instantly comes to your mind when you think of such inventions? Telephones? Light bulb? Internet?

One often underrated invention I would say is modern railroads. Replacement of horses with modern railroads around 1880s was the turning point for countries like US and Britain.

A whole new wave of civilization started in US.

Credit for this revolution goes to the steam locomotive. This technology paved the way for the modern railroads. Baldwin locomotive works was one of the early makers of these locomotives in the US.

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Being one of the early entrants, business boomed during the early years. Demand hit its peak in 1905.

But Baldwin was barely profitable. Inflation, increased labor costs meant increased costs. Despite its sales increasing, expenses increased at a much faster rate.

Do you know who profited the most due to this invention?

It was the people who bought real estate in the city of Chicago around the same time. Better connectivity saw people flocking to Chicago. Demand for property soared.

A similar thing is happening in the city I live in. The Mumbai Metro work is on in full swing. Transportation is expected to get better.

Once the whole city is connected via metros, many companies will benefit, just like Chicago real estate companies.

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I met one of them at an Annual General Meeting (AGM) this week.

This is not your typical real estate company. It has a host of related businesses. All of them are doing quite well. I believe, it has an able management at the top ready to take it to the next level of growth.

It has a huge land bank, is debt free, and has remained so for decades. The management expects a boost in business post the completion of the Mumbai Metro.

The stock has managed to do well even in this difficult market. I believe it is the perfect proxy to India's economic growth story.

These are the kind of stocks I am looking for. The stocks that might not be trendsetters. But they will be in the right place at the right time to benefit when such trends take place.

And this is just one of those trends.

There are many more trends set to play out over the next decade in India.

These trends will drive the transformation I call the Rebirth of India. In this transformation, I believe, the 7 stocks I've picked, are best placed to deliver excellent profits for investors who buy them. Join me at 5 PM today for the Rebirth of India Mega Summit where I'll reveal details of the Rebirth of India as well as the 7 stocks I've identified.

Don't miss it! I hope to see you there.

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Chart of the Day

If there is one sector that has been under fire for most since 2018, it is financial services.

Since the IL&FS crisis, the domino effect has affected all lenders in the Indian economy.

Public sector banks have struggled due to rising NPAs.

NBFCs have struggled after the IL&FS crisis and are wary to lend.

There has been a silver lining in this mess. i.e. the increased market share of private sector banks.

Since 2014, private banks have consistently gained market share mainly at the expense of PSU banks.

India's Credit Shift Megatrend


With PSU banks still struggling to get out of their NPA mess, this trend is set to continue.

One such good quality private bank makes it to my top 7 stocks to buy list.

These 7 stocks will be a part of many such megatrends that will play out over the next decade in India.

Warm regards,

Tanushree Banerjee
Tanushree Banerjee
Editor and Research Analyst, The 5 Minute WrapUp

PS: Dear reader, today at 5 PM, at the Rebirth of India Mega Summit, I will show you how a once-in-2,000-year event will create unprecedented wealth for investors. Join me to find out my top 7 stocks to profit from this historic opportunity.

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