Indian Multibaggers 2020: Indian Stocks of The New Economy

how to spot multibaggers

The way we live and do business is changing the world over.

Suddenly, gasoline is out-electric is in, conventional metals are getting replaced with  carbon fibre and graphene, new uses of minerals and rare earths are being discovered and deployed, cash is going out of fashion and digital transactions are the order of the day, flying taxis, drone deliveries, and other sweeping changes are upon us.

Being stock market investors, we must cash in on the disruption. Here then is a list of companies that will enable and thrive in the new economy. However, remember to keep up to speed with technology changes. For example, shale gas exploration was hot a few years ago when oil prices touched $80, today most shale gas companies are selling assets at a massive loss.

In this post, which is a collaborative venture with our Twitter pals, we will focus on:

1. Electric vehicles
2. Waste to wealth
3. Ports
4. Digitization
5. Defence
6. Urban modernization
7. water purification
8. Seeds (I have yet to add a couple)

This list will build up over time, therefore keep coming back for more. Else, Follow @TheBullBull on Twitter for live stock market updates.

Please send your suggestions and I will be happy to review and upload if these look good. Thanks.

Here we go:

StockSectorCMPNotes
NALCOMining82Aluminium will be used in the manufacture of smartphones, drones, flying taxis, Evs, etc., etc. It is much cheaper than carbon fiber and graphene and National Aluminium is also setting up an Aluminium-Lithium plant in Orissa in collaboration with MIDHANI (part of Indian Defence).

Plus it has entered into an agreement with Hindustan Copper to buy or lease mines abroad.

EPS of around 2.98 in 2016-17 is expected to increase to around 4 this year.

But the biggest reason for investing in NALCO is because its products will help shape the future.
Gujarat PipavavPorts142This is an MNC (APM of Netherlands). APM also owns the MAERSK service.

Company builds and operates ports and inland cargo services.

Gujarat Pipavav owns a port and a railway line from the port to an important junction.

EPS expected in 2017-18 is about 5-6 bucks.

However, investments in the Sagarmala project and the fact that JSW Infra and Adani are trying to acquire it make it a compelling buy.
Oracle FinancialFintech/Digitization3600Oracle will become one of the leaders in blockchain tech along with IBM and Microsoft.

Blockchain is the next gen fintech and the growing pace of digitization of money will benefit Oracle enormously.
BASFChemistry1765We tweeted a recommendation at 1435 of this superb stock that caters to most industries.

This is an innovative company that keeps evolving with changing needs. Recently, it has unveiled range extenders and other innovations for lithium batteries, which will find takes in the EV space.

This is a superb stock that can enrich you substantially by 2020.
Raunaq EPCWater Pipelines158The company specializes in laying cross country pipelines, among other EPC expertise.

Water is a huge theme and if India has to be digital, clean and forward looking then every village must receive flowing and clean water.

The potential for this established company is tremendous.
Ion ExchangeWater Purification500Superb play into water purification for all industries and residential users. Good fundamentals too.

But share is low-key and sort of a laggard in a dynamic market. Still, a good buy.
Gravita IndiaWaste to Wealth 152Manufactures lead, aluminium and plastic granules from scrap sourced all over the world.

Other major companies in the same business are Nile and Pondy Oxides.
SiemensUrban Technologies1224If any country wants to develop a smart city, or strengthen and modernise its core infrastructure, Siemens (and ABB) is the go-to company.

Very highy PE though. Track and buy when it falls, else go with ABB or Honeywell.
Honeywell Urban Technologies15,995Another stock in the league of Siemens and ABB. Very high quality and safe stock that can survive a recession.
Sterlite TechnologiesDigitization221.70Vedanta group company that will emerge as the leader in fiber optic networks, smart city management
ITD CementationCountry-wide infrastructure172.80It's the guru of infra companies. A should-have in your core portfolio.
HBL Power SystemsElectric Vehicle Batteries/Defence Infra61This company looks like a gem of a stock to own except for the fact that it's been lagging for several years now.
Ashok LeylandCommercial Electric Vehicles125This company will slowly and surely race to the top of the EV space, giving stiff competition to M&M and TaMo.

It already is in a collaboration to manufacture EV batteries.
Panasonic CarbonCarbon Rods577Carbon will be the mineral/material of choice going forward. It will be used in most modern applications (Carbon fiber, EVs, etc.)

This high quality company manufactures high standard Carbon Rods in India and the World. Hasn't appreciated like HEG and Himadri. It's day will come.

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22 Comments on "Indian Multibaggers 2020: Indian Stocks of The New Economy"

  1. Simple and perfect sir …… great work

  2. Hi Sir,
    This is again a great article. I saw a description regarding block chain for Oracle Financial. I too can feel the future for automation and IT technology.
    Also it would be great if you could help in discovering listed companies working on
    1>Block Chain ?
    2> Robotics?
    3> IOT?
    4> Mirco Technology.

  3. https://www.abmindia.com
    Abmknowledge is similar company I found for modern urbanisation …
    Thanks for article Sunil sir…..

  4. Sie, given the global trend do you feel its right time to get stocks of companies dealing in robotics?

  5. Looking for a good support for portfolio

  6. I am a new follower of yours & after reading your article it seems I am at the right place. Thanks

  7. Ashley Rebello | December 8, 2017 at 6:15 am | Reply

    Dear Sunil,
    Superb blog which comes out as honest as one can find. Keep up the good work.
    Really impressed.
    Thank you.

  8. Hi,
    I am a new follower of yours & would like to know about Sree Rayalseema Hi strength Hypo —-> Water Purification Chemical & Camson seeds & Camson bio.

    Thanks in advance.

  9. Dear Sir,

    I am a new follower of yours & I would like to know about Sree Rayalseema Hi strength hypo which is engaged to mfg of water purification chemical & other two companies which are in seeds segment they are Ca,mson Seeds & Camson Biotech.

    Please let me know your opinion about these companies.

    Thanks in advance.

  10. Great article sir….

  11. sir please post what are the triggers for ion exchange and can we keep it for next generation stocks , iam your new follower , waiting eagerly
    regards drvivek patil

    • Ion Exchange is a well managed company. EPS is 40 and t is into water treatment for industries, which is big business. IMO, it should be held for the long term.

  12. sir at cmp gravita india is it a strong buy for long??
    waiting reply

  13. I think it is time to see investment in cos. involved drone as it is going to proliferate in very short time for industrial, govt and retail use. Any research on such Cos.

  14. respected sir please add new script in seeds section or any other new i think its a grt buy time in multibagger 10 bagger hunt waiting eagerly
    regards drvivek patil

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