18 March 2024 – On Monday, Jefferies released a list of eleven firms that it believes would provide strong returns over the next five years. The research group projects that these businesses will provide robust compound annual growth rate (CAGR) returns of between 15 and 25 percent.
According to the business, as long as reforms are implemented, India’s GDP may reach $5 trillion in the next four years, making it the world’s third-biggest economy. This would allow for long-term GDP growth of 7%. For the next five years, Jefferies suggests the following stocks to investors:
Amber Enterprises
Amber’s core expertise in ACs and diversification into components, with assistance from the PLI scheme, would generate a Compound Annual Growth Rate of 36% during the financial years 2024 to 2030 in terms of profits, according to the brokerage, which ranked it as its top choice in the small and midcap category.
Bharti Airtel
Bharti’s free cash flow to equity is expected to expand at a 21% CAGR during FY24–30 due to the company’s strong EBITDA growth—13% CAGR in India and rising ARPUs faster than nominal GDP—and moderating expenditure. This would also raise the ROCE of the business to 25% and beyond.
Conclusion
India is now the fifth biggest equities market, with a continuous 10-12% USD CAGR over the last 10–20 years.
