Goldman Sachs chose 10 stocks for its top bets across financials, consumer, industrials, and clean energy sectors, expecting strong growth and good returns.
Goldman Sachs sees opportunities in rising demand, policy support, and infrastructure expansion.
Global broking house Goldman Sachs selected 10 domestic stocks to bet on for strong returns amid tailwinds and increased growth potential. HDFC Bank, MakeMyTrip and Adani Ports are listed among the top bets for the brokerage.
“These names have strong tailwinds within their respective sectors and have the potential to deliver strong returns over the next 12 months,” said Goldman Sachs in a report.
HDFC Bank; TP: Rs 2,090; Sector: Financials
- Best placed to benefit from liquidity measures taken by RBI which should translate into deposit growth for the system and the bank given its demonstrated history of gaining deposit market share
- Pick up in loan growth as L-D ratio consolidation is behind
- Healthy earnings growth at 15 percent CAGR over FY25- 27E.AU Small Finance Bank; TP: Rs 796; Sector: Financials
- A GARP (growth at reasonable price) play with strong earnings outlook of 31 percent CAGR between FY25-27E
- Peaking credit cost as core portfolios remain resilient while MFI/credit cards stabilize in 2HFY26
- Improvement in cost of funds as rate cut cycle materializes
- Valuations at 1SD below historical mean despite ROA/Return on risk-weighted assets of 1.5 percent/2.8 percent in FY25E.
Titan; TP: Rs 3,900; Sector: Consumer
- Acceleration of Titan’s standalone jewelry EBIT growth to 20 percent in FY26E, compared to 6.2 percent CAGR over FY23-25
- This will be driven by sustained jewelry revenue growth of over 15 percent and modest improvement in standalone jewelry EBIT margins to 11-11.5 percent.
GCPL; TP: Rs 1,370; Sector: Consumer
- Improved turnaround in home insecticides from the new improved formulation
- Sustained high growth in air care/fabric care
- Recovery in EBITDA margins as price hikes in soaps plays out.
Adani Port & SEZ; TP: Rs 1,400; Sector: Industrials
- Expect acceleration in port volumes over FY26-27E driven by ramp-up at Vizinjham, Gopalpur, and Tanzania and commissioning of the port at Colombo – driving early double-digit volume growth
- FY26 growth outlook better than FY25, coupled with reasonable valuations.
Indigo; TP: 5,050; Sector: Industrials
- Indigo’s market share gains are sustainable, given their healthy newplane deliveries
- The industry is consolidating towards two large players Indigo’s cost leadership will likely drive improvement in profitability
- International business has a long runway for growth.
MakeMy Trip; TP: $124; Sector: Internet
- Robust forward outlook with sustained strong underlying travel trends, aided by lower tax rates
- Favorable industry structure should translate to margin upside
- Improved shareholder payout- forecast $300 million FCF; could expand share buyback program.
Mahindra & Mahindra; TP: Rs 3,800; Sector: Autos & Mobility
- Supply ramp up of recently launched Battery Electric Vehicle range starting Q2CY25
- Potential further pickup in Farm equipment business momentum in Q2CY25, post strong monsoon in CY24
- Qualification for PLI scheme incentives on EV portfolio, potentially during CY25
- Execution on Thar Roxx order backlog through 2HFY25
- Potential value unlocking in unlisted subsidiaries in sunrise sectors including renewable energy and dean mobility.
Apollo Hospitals; TP: 78,025; Sector: Healthcare
- Estimate improvement in hospital occupancy by ~210bps in FY26E driven by increased marketing
- Improved occupancy will lead to operating leverage
- On-track to break-even in the online entity – Apollo 24*7
- Diagnostics offers good option value.
Power Grid; TP: Rs 375; Sector: Clean Energy
- Continue to see a significant capex opportunity in transition-linked grid infrastructure and equipment ($500bn+ capex requirement for India’s power transmission capex by FY50E)
- As India scales up its hybrid renewable projects, grid expansion must outpace generation capacity to maintain system reliability, reinforcing the structural need for overbuilding the grid.
Source: www.moneycontrol.com
