📷 Image Credits: Mint
In recent findings, Morgan Stanley projects a substantial 15.3% CAGR in India’s infrastructure investments, estimating a total expenditure of $1.45 trillion over the upcoming five years. The firm has pinpointed L&T, NTPC, Titagarh Rail Systems, and UltraTech Cement as key stocks poised for growth in this sector. India’s infrastructure has witnessed significant advancements, with further enhancements anticipated through government initiatives like PM Gati Shakti. These developments are expected to reduce logistical costs and boost manufacturing competitiveness. The brokerage foresees a gradual rise in India’s infrastructure investment from 5.3% of GDP in F24 to 6.5% of GDP by F29, fostering a heightened investment rate and extended periods of productive growth. Investors are optimistic about India’s economic resilience, driven by supply-side reforms and improved macroeconomic stability, signaling a promising profit cycle. With a projected annual economic growth of 10%, an increase in the profit share in GDP to 8% within the coming years could lead to an earnings CAGR exceeding 20% for the broader market, as per Morgan Stanley’s predictions. Morgan Stanley’s analysis on four infrastructure stocks is as follows: L&T stands to gain from increased government infrastructure spending, while reduced material prices could enhance its cost structure. NTPC is expected to benefit from accelerated capacity expansion and improved financial health of SEBs, alongside value-adding acquisitions. Titagarh Rail Systems anticipates growth based on its backlog and heightened return ratios, with potential challenges posed by supply chain disruptions. UltraTech Cement shows strong medium-term demand visibility despite near-term uncertainties, with cost pressures from input prices being a concern. It’s essential to note that these views and recommendations are solely those of individual analysts or broking companies. To explore further insights on India’s infrastructure growth potential, check out the full article on HeadlineFly.com.
