Goldman Sachs, a prominent global investment bank, has pinpointed 14 Indian stocks likely to excel in the upcoming equity market rally. This diverse list encompasses a range of themes including consumption, defense, energy transition, travel, and digital growth. Major companies featured include Reliance Industries, NTPC, Titan Company, InterGlobe Aviation, and Maruti Suzuki, alongside emerging favorites like Eternal, which owns Zomato, and MakeMyTrip.
Titan Company stands out as a significant player in India's growing affluent consumption market. Goldman Sachs anticipates sustained double-digit growth for Titan's jewelry division, as consumers are shifting towards branded chains from traditional jewelry retailers. The company's omnichannel operations, including Caratlane and international business, are expected to enhance profit margins. With a projected EPS CAGR of approximately 24% for FY25–28, Titan is seen trading at a discount compared to its discretionary peers, indicating potential for further valuation increases.
In the consumer sector, Godrej Consumer is forecasted to experience a robust growth recovery due to new product formulations in home insecticides and expansion into underserved markets like air fresheners and pet care. With expected EBITDA growth of around 13% from FY26–28, improvement in margins and price hikes will support this trajectory.
Neuland Labs is positioned to thrive in the rapidly growing global API outsourcing market. Anticipated developments like the increase in production of key molecules and specialty API launches point towards a compound annual growth rate (CAGR) of 15% for the industry over the next five years.
Havells, previously subdued in growth, is projected to enter a recovery phase with increased demand driven by new capacity while its margins are expected to improve after plateauing by FY26.
IndiGo, currently holding a significant 64% market share in India’s aviation sector, is set to gain from industry consolidation and enhanced pricing discipline, further bolstered by the expansion of airport infrastructure.
In the defense sector, PTC Industries is highlighted for its growth potential, with an expected earnings CAGR of 123% through FY28 as it advances its capacity for critical titanium and superalloy castings. Similarly, Solar Industries anticipates a 25% annual profit growth driven by diversification into various defense applications, with significant capacity expansion planned.
MakeMyTrip is considered well-positioned for long-term success in digital travel, experiencing growth due to increased online penetration in travel services, expecting a 19% revenue CAGR through FY25–30. Likewise, Eternal is noted for its ambitious growth, expected to see B2C gross order value expand significantly.
Reliance Industries is projected to have a 15% rise in EBITDA in FY26, backed by robust refining margins and telecom growth, showing a favorable risk-reward situation. Lastly, NTPC is recognized as a pivotal entity in India’s energy transition, with plans to construct extensive renewable capacity and leverage opportunities in thermal capital expenditures, ensuring stable returns and growth potential.