»Profit Hunter by Equitymaster

On This Day - 3 JUNE 2019
The Top 7 Stocks to Profit from Modi's Repeat Performance

Tanushree Banerjee, Co-Head of Research

I've always liked playing Chess. While it was my favorite pastime, it has benefits few other sports offer.

From problem solving skills to improving creativity, the game has it all to engage one's mental health.

There are many ways to play the game. In fact, the number of possible moves is more than the atoms in the universe!

Recently I read about a chess technique called 'Retrograde Analysis'. Simply put, it is used to solve problems backwards from known outcomes.

I realised, this technique is useful almost everywhere. Think about where you want to be in 5 years. Then work backwards step by step on what you need to do right now to reach there.

It is a very useful concept in the investing world as well.

--- Advertisement ---
Acche Din Are Here Again…Sensex 100,000 To Follow

Modi's win has already caused the Sensex to soar significantly in celebration.

And we have no doubt that we could be looking at Sensex 100,000 in the years to come.

Early investors have the potential to get immensely rich…as long as they can identify the right opportunities.

Here's how we identify the best stocks to profit from.

Click here for full details on the 4 stocks that stand to benefit in the years to come…and lead to huge potential profits for investors.
------------------------------

Think of India after say, 5 or 10 years. Where do you think we will be as a country?

  • Will we move towards more urbanisation?
  • Will everyone have a smartphone and a bank account?
  • Will we have smart cities and better roads replacing villages with no connectivity right now?
  • Will we become an export giant like China?
  • Will we shore up our defence like other superpowers?

With the Modi government back in power, these trends will accelerate.

Now, all of this might not play out perfectly as we might imagine.

But for India's large population, even a small improvement is big.

A 5% shift from rural to urban means a shift of around 65 million people. Imagine all the new markets that would be created. Also, India's demographic dividend means we have a young population with potential for a lot of consumption.

That is why I strongly believe in the Indian economy's long-term growth potential.

Looking forward to the next 5 or 10 years, I believe there are 50 irreversible trends that will play out in the years to come.

Megatrends that are bound to take India to the Sensex 1,00,000 mark.

I call this, the Rebirth of India.

Now, for you dear reader, it's important to be in the right stocks when this happens.

By the right stocks, I mean stocks backed by strong fundamentals. Stocks with huge potential but also with a margin of safety in terms of valuations.

A basket of such stocks will cover every aspect of India's growth potential.

I have identified 7 stocks that are likely to benefit from this trend.

In Chess, a strong board position eventually decides the winner.

I believe, with these 7 stocks, you are in strong position to win in the investing world.

If there is one area that needs immediate attention by the government, it is job creation.

--- Advertisement ---
In Modi's New India Invest in These Kind of Companies

Have you ever thought why people are subscribing to Netflix, Hotstar, and Amazon Prime instead of buying a DVD?

Why people are listening to music on Spotify, Saavn, and Gaana instead of buying a CD?

Why people are shopping through Amazon and Flipkart instead of going to stores?

Why people are using Uber and Ola instead of using their own cars?

These companies are making huge profits by scaling their business everywhere and killing competitors.

And investors love such companies.

That's why there is quite a shift from the traditional way of doing business.

Want to know which Indian companies are using the same strategy to grow their business?

Click here...
------------------------------

According to a CMIE survey, the unemployment number stands at 41 million people. That is too big a number to be ignored.

Now, job creation at such a mass level won't be a walk in the park. To set the wheels in motion, the government will have to look at infrastructure spending.

Capacity expansion in new projects has seen a gradual slowdown in the past few years.

Infra Capacity Expansion Likely to Be the Key Focus of the Modi Government

From Rs 3.3 trillion in June 2018, the number has come down sharply to Rs 2.1 trillion as of March 2019. I believe this will the first area the government will look to focus on. Apart from creating jobs in the infrastructure sector, it opens a lot of other avenues.

Better infrastructure will mean better connectivity to non-metros. This will attract manufacturing companies to set shop in these towns. It will give a boost to the urbanisation of the population.

This is a trend I see clearly playing out in the coming years.

Infrastructure spending -> Improved roads -> Increased two-wheeler sales.

It is just one of the 50 irreversible trends I believe will carry the Sensex to 1,00,000.

Warm regards,

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

PS: Dear reader, Modi's resounding election victory is great news for the stock market. More importantly, I believe 7 stocks could be among the biggest gainers as the Modi government implements its policies. Read more about these 7 stocks here...

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.

Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement

Disclosure & Disclaimer: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. The Author does not hold any shares in the company/ies discussed in this document. Equitymaster may hold shares in the company/ies discussed in this document under any of its other services.

This document is confidential and is supplied to you for information purposes only. It should not (directly or indirectly) be reproduced, further distributed to any person or published, in whole or in part, for any purpose whatsoever, without the consent of Equitymaster.

This document is not directed to, or intended for display, downloading, printing, reproducing or for distribution to or use by, any person or entity, who is a citizen or resident or located in any locality, state, country or other jurisdiction, where such distribution, publication, reproduction, availability or use would be contrary to law or regulation or what would subject Equitymaster or its affiliates to any registration or licensing requirement within such jurisdiction. If this document is sent or has reached any individual in such country, especially, USA, Canada or the European Union countries, the same may be ignored.

This document does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Our research recommendations are general in nature and available electronically to all kind of subscribers irrespective of subscribers' investment objectives and financial situation/risk profile. Before acting on any recommendation in this document, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. The price and value of the securities referred to in this material and the income from them may go down as well as up, and subscribers may realize losses on any investments. Past performance is not a guide for future performance, future returns are not guaranteed and a loss of original capital may occur. Information herein is believed to be reliable but Equitymaster and its affiliates do not warrant its completeness or accuracy. The views/opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. This document should not be construed as an offer to sell or solicitation of an offer to buy any security or asset in any jurisdiction. Equitymaster and its affiliates, its directors, analyst and employees will not be responsible for any loss or liability incurred to any person as a consequence of his or any other person on his behalf taking any decisions based on this document.

As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407