Three Stocks to Profit from India's Third Giant Leap

India's third giant leap is here. And it is turning the wheels of economic progress at a remarkable rate.

The next few years is going to see millions of Indians being lifted out of poverty and an equal number of them enter the great Indian middle-class.

There will be opportunities galore. Our young, energetic workforce will propel India to even greater heights.

And this transformation is going to happen not just on the highways, in the virtual world or in the lives of the average Indians.

It will happen on the Indian bourses as well. Companies that have positioned themselves well to capitalise on this megatrend, will be the biggest beneficiaries in my view.

In fact, I am happy to announce that my project on India's third giant leap, also one of my most ambitious till date, is now complete. I have a fair idea about the stocks I see benefiting hugely from this trend.

These are special category of stocks that I have shortlisted after painstaking research. I have dissected historical data running into hundreds of excel sheets.

To begin with, I have shortlisted 3 stocks from this list. These stocks are all set to ride India's third giant leap. They are well positioned from a risk-reward perspective.

Here're a few lines on each one of them...

My very first stock is a bit of a contradiction in how the financials of the company have moved over the last five years and how the stock price has responded to them.

In terms of financials, the company's topline has gone up by 2.5x over the last 5 years. The bottom line has grown by an even more impressive 4x during the same period.

Also, this growth has been accomplished without putting any kind of pressure on the balance sheet.

The debt to equity ratio has actually seen a decline during this period.

The stock price of the company on the other hand, has struggled in recent months. The stock has more than halved from its 52-week high. It's hardly finding any buyers these days.

However, this decline in the stock and our faith in the company's management to keep the growth engine chugging, makes us optimistic about its future.

The company is taking all the right steps to not just grow but to also reduce its dependence on any one segment. This will make it more resilient in the future.

All in all, it is a wonderful business available at what I believe to be quite attractive valuations.

My second stock is a company that has seen its share price fall by around 30% from its 52-week high.

However, this is no ordinary company. It's one of the largest vertically integrated Indian firms in its industry.

Although it has not grown as fast the first company on the list, it has still managed to triple its bottomline and grow its topline by 1.7x over the last five years. We also like its borrowing discipline as its debt is just one-third its equity.

Thus, an ambitious expansion plan along with a rock-solid business and attractive valuations, makes this stock a great fit for riding India's third giant leap.

Last but not the least, my third company on the list is one of the most well-managed NBFCs in the country in my view.

And unlike the first two names on the list, this stock isn't down much from its 52-week high.

The thing I like most about is its conscious strategy of being conservative in bad times.

In fact, the company boasts of a huge balance sheet, well in excess of Rs 300 bn despite not having raised equity in the last 50 years.

This means it has relied only on retained earnings to grow its book, which is an impressive feat, especially for an NBFC.

Now, with India's third leap about to kick into a higher gear, I believe there will be enough opportunities for the company to grow its earnings in a way the management likes it the most i.e. prudent and measured.

Trust me, this is just the beginning. There are many more stocks that I have on my watchlist.

These stocks have the potential to deliver multibaggers gains should everything fall into place.

So, if you are keen to lay your hands on the three stocks and others to follow, attend my special online event.

Watch the video of the event here.

Warm regards,


Rahul Shah
Editor and Research Analyst, Profit Hunter