It is said that “Opportunities are like sun rises. If you wait too long you miss them.” Multibagger stocks are golden opportunities which if identified early can create immense wealth for investors. However it is not that easy to identify multibagger stocks.
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The benchmark indices of Indian equity markets, Sensex and Nifty touched a new all-time high of 39,275.64 and 11,787.15 respectively in April 2019. The main contributors to this rally included multibagger stocks from sectors like consumer durable goods, oil and gas companies and finance companies.
But it is not necessary that the same sectors will deliver the next set of multibagger stocks in India.
Let’s take a look at the few important sectors which have the potential to deliver the next set of multibagger stocks in India.
Infrastructure
Given the high rate of India’s economic growth, it is poised to become an economic superpower in the next 12 to 15 years. However no country can become an economic superpower without adequate infrastructure in the forms of bridges, flyovers, roads, highways, airports, high speed rail networks, metro lines and ports. Hence infrastructure sector is likely to deliver some multibagger stocks in India over the next 5 to 10 years.
Technology
Today there are hardly any walks of life which have been left untouched by technology. India is a leading force to reckon with in the technology sector which is likely to deliver many multibagger stocks in India over the next decade.
New technologies like cloud computing, algorithms, digitization, block chain, machine learning and artificial intelligence (AI) have resulted in a huge demand for specialized technology-based service providers.
Technology has changed the face of insurance, banking, finance, securities, retail, ecommerce, manufacturing, telecom and health care sectors drastically. Huge demand from these sectors is going to be game changer for companies in IT sector. Apart from the domestic demand, Indian IT companies also cater to global clients with an insatiable demand for emerging technologies.
Currently, Indian IT & IT enabled Service companies to operate from more than 1,000 global delivery centers across 80 countries in the world.
Cement
The cement sector in India has benefitted greatly on account of the government’s ambitious push for housing for all under the Pradhan Mantri Awaas Yojana by the year 2022. 60% of the demand for cement arises from the housing sector so the expected volume growth will be very high over the next few years. As mentioned earlier demand for cement from infrastructure sector is also another key reason why we can expect the cement sector to deliver multibagger stocks in India.
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Read more: How Long-term investing helps create life-changing wealth – TOI.