Key Points
What he expects is a peak of the profit to GDP cycle which will be reached over the next few years till about 2032, will be the primary driver..
The primary company which comes into our mind is HDFC Bank which requires around 25% hurdle rate..
And the third stock where the hurdle rate is in sync with its past growth is Bajaj Finance.. Which company do you think will join that $1-trillion market capitalisation in India because clearly, it seems like it is at least 8-10 years away for us?..
Now, without getting into speculation, what we are, the way we have formulated, which companies could make it to the $1 trillion mark is that these companies, the hurdle rate required for their market cap to expand to $1 trillion should be in the range of their profit growth that they have shown in the past, so that we do not get into speculative area.. Unlock Leadership Excellence with a Range of CXO CoursesOffering CollegeCourseWebsiteIIM LucknowIIML Chief Executive Officer ProgrammeVisitIIM LucknowIIML Chief Marketing Officer ProgrammeVisitIIM LucknowIIML Chief Operations Officer ProgrammeVisit..
Second is Reliance if it manages to increase its profit growth from this 13-14% that it has been generating in the past to around 20% range, without any re-rating in PE, it should be another stock which can hit the $1 trillion bar...
You might be interested in
Indian companies deliver on Street hopes in first qtr
31, Jul, 23The aggregate net profit and revenue of these companies grew 32% and 7.88% from a year earlier, with profit growing at the fastest pace in eight quarters
Want to buy afresh or add fresh positions? Look for growth, not value: Deepak Shenoy
12, Dec, 23“In infrastructure, I would look at companies that are able to manage their cash flows better and even a company like Mazagon Dock has amazing cash flow management for what is otherwise a government company. They have net cash on their balance sheet because they get paid in advance. Some of those aspects matter more.”