In this article, we discuss 10 best Indian stocks for the next decade. If you want to skip our detailed discussion of the Indian economy and head over to the top 5 Indian stocks, click 5 Best Indian Stocks For Next 10 Years.
The Asian Development Bank (ADB) expects India’s GDP growth to be 6.4% in FY2023 and increase to 6.7% in FY2024, supported by private investment and higher consumption. The government is also dedicated to enhance the country’s transport system, logistics facilities, and integrate India seamlessly in the global economy. The slightly decelerated GDP growth in FY2023 is due to the current global economic backdrop, strained monetary environment, and staggering oil prices. On the other hand, higher investment is forecasted during FY2024, driven by favorable government mandates, a solid economic outlook, and potentially greater bank lending. Takeo Konishi, ADB Country Director for India, said on April 4, 2023:
“Despite the global slowdown, India’s economic growth rate is stronger than in many peer economies and reflects relatively robust domestic consumption and lesser dependence on global demand. The Government of India’s strong infrastructure push under the Prime Minister’s Gati Shakti (National Master Plan for Multimodal Connectivity) initiative, logistics development, and industrial corridor development will contribute significantly to raising industrial competitiveness and boosting future growth.”
The World Bank published its latest India Development Update in April 2023, and it expects the country’s growth to remain solid at 6.9% for this year. The real GDP is forecasted to increase 7.7% on a year-over-year basis for the initial three quarters of fiscal year 2022/23. However, in the later half of FY2022/23, the World Bank sees a deceleration in growth. While India experienced a high inflation rate of about 6.7% in FY2022/23, the current account deficit shrank in the third quarter, due to resilient performance in service exports and favorable commodity prices globally. Auguste Tano Kouame, World Bank's Country Director in India, commented:
“The Indian economy continues to show strong resilience to external shocks. Notwithstanding external pressures, India’s service exports have continued to increase, and the current-account deficit is narrowing.”
Amid decreasing global commodity prices in FY2023/24, the World Bank expects Indian inflation to average at 5.2%. The Reserve Bank of India has also pulled back on increasing interest rates in order to control inflation. The country’s financial sector remains robust, bolstered by enhanced asset quality and solid private-sector credit growth. In FY2023/24, India’s general government deficit is also projected to decline, consequently stabilizing the debt-to-GDP ratio. According to Dhruv Sharma, senior economist at the World Bank:
“Spillovers from recent developments in financial markets in the US and Europe pose a risk to short-term investment flows to emerging markets, including India. But Indian banks remain well capitalized.”
India is one of the richest countries in Asia (see 21 Richest Countries in Asia), therefore Indian companies have huge potential for growth. Many Indian companies are already trading on the New York Stock Exchange and the NASDAQ and operating internationally as well, including ICICI Bank Limited (NYSE:IBN), HDFC Bank Limited (NYSE:HDB), and Infosys Limited (NYSE:INFY). The value of these stocks could skyrocket in the next decade as India gains greater prominence on the global stage.
Our Methodology
We selected the following Indian stocks based on the hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the first quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm.
These companies are Indian in origin but trade on the American stock exchanges. Most of their operations are located within India, but some offer services internationally too. For more exposure to the Indian stock market, investors can also check out 15 Biggest Indian Tech Companies and Top 15 Pharmaceuticals Companies in India.
Yatra Online, Inc. (NASDAQ:YTRA) is an Indian online travel company operating through Air Ticketing, and Hotels and Packages, and Other Services segments. Its services include air ticketing, hotel bookings, holiday packages, taxi bookings, and more. Yatra Online, Inc. (NASDAQ:YTRA) was incorporated in 2005 and is based in Gurugram, India.
On May 30, Yatra Online, Inc. (NASDAQ:YTRA) reported a Q1 revenue of $14.53 million. The adjusted revenue of approximately $23.1 million indicated a 93.3% year-over-year increase. Total Gross Bookings, comprising Air Ticketing, Hotels and Packages, and Other Services, raked in $217 million. This represented an increase of 56.1% on a year-over-year basis. Yatra Online, Inc. (NASDAQ:YTRA) also reported a Q1 2023 profit of $14 million, compared to a loss of $0.6 million in the prior-year quarter. This reflects an improvement of 316.5% year-over-year.
According to Insider Monkey’s first quarter database, 5 hedge funds held stakes worth $44.8 million in Yatra Online, Inc. (NASDAQ:YTRA), compared to 6 funds in the prior quarter worth $47.7 million. Michael Kaufman’s MAK Capital One is the largest stakeholder of the company, with a position worth $27.7 million.
In addition to ICICI Bank Limited (NYSE:IBN), HDFC Bank Limited (NYSE:HDB), and Infosys Limited (NYSE:INFY), Yatra Online, Inc. (NASDAQ:YTRA) is one of the best Indian stocks to buy and hold for the next decade.
Sify Technologies Limited (NASDAQ:SIFY) offers information technology services and solutions in India and internationally. The company is divided into three segments – Network Centric Services, Data Center Services, and Digital Services. It was incorporated in 1995 and is headquartered in Chennai, India. Sify Technologies Limited (NASDAQ:SIFY) is one of the best Indian stocks to watch.
On April 24, Sify Technologies Limited (NASDAQ:SIFY) reported a Q4 EBITDA of INR 1.64 billion and its revenue came in at INR 8.86 billion, up 30.1% on a year-over-year basis.
According to Insider Monkey’s first quarter database, 5 hedge funds were bullish on Sify Technologies Limited (NASDAQ:SIFY), and Ken Griffin’s Citadel Investment Group held the leading position in the company, comprising 103,515 shares worth $130,429. In Q1 2023, the billionaire raised his stake in Sify Technologies Limited (NASDAQ:SIFY) by 224%.
Here is what Long Cast Advisers has to say about Sify Technologies Limited (NASDAQ:SIFY) in its Q1 2021 investor letter:
“We reduced our stake in SIFY at attractive prices but continue to own meaningful shares. It is rumored that Blackstone is interested in acquiring a minority stake at a ~$1B valuation, which gets to ~$6 / share. Short of a Blackstone stake, splitting up the company would offer another path to value realization. The Board has already approved a plant to demerge. This would remove the shadow of the larger legacy Network business, which comps to Tata Communications at 6x-8x EBITDA multiple, from the faster growing Data Center and IT businesses, which comp to companies with reasonable market multiples of +15x EBITDA. The Data Center segment owns 10 data centers around major cities in India and has grown EBITDA +80% CAGR over the last two years. At prevailing acquisition multiples on a trailing basis, the data center business alone is worth +$3 / share.”
Azure Power Global Limited (NYSE:AZRE) provides sustainable energy and power solutions in India. The company is involved in solar, wind, and hybrid projects, supplying renewable power to government utilities, as well as industrial and commercial customers. Azure Power Global Limited (NYSE:AZRE) is one of the best Indian stocks to invest in.
On September 19, 2022, Azure Power Global Limited (NYSE:AZRE) disclosed that it has collaborated with First Solar, Inc. (NASDAQ:FSLR) for 600 megawatts of high-performance, advanced thin film photovoltaic solar modules. First Solar’s new manufacturing plant in Tamil Nadu, India is scheduled to be commissioned in the later half of 2023. Azure Power Global Limited (NYSE:AZRE) will potentially receive First Solar’s solar modules from Q4 2023 to 2025. Georges Antoun, chief commercial officer at First Solar, said:
"Our relationship with Azure Power goes back over a decade and we are pleased that it is the launch customer for a product that has not only been designed for India, but made in India, for India. This deal demonstrates how experienced developers and independent power producers in India are increasingly taking a strategic view on procurement and securing long-term commitments that help tackle the risks of short-term pricing and supply volatility. When working with First Solar, they benefit from certainty of pricing and supply, and a technology that is advantaged in India's operating environments."
According to Insider Monkey’s first quarter database, 6 hedge funds were bullish on Azure Power Global Limited (NYSE:AZRE), compared to 9 funds in the prior quarter. Hyder Ahmad’s Broad Peak Investment Holdings is the biggest stakeholder of the company, with 415,000 shares worth $1.03 million.
Wipro Limited (NYSE:WIT) is an information technology, consulting, and business process services company, operating worldwide via three segments – IT Services, IT Products, and India State Run Enterprise Services. It is one of the best Indian stocks to invest in.
On June 5, Wipro Limited (NYSE:WIT) disclosed a share repurchase plan of up to 269.66 million shares at a price of INR 445 per share for up to INR 120 billion, which approximately equals $1.46 billion.
According to Insider Monkey’s first quarter database, 10 hedge funds held stakes worth $26.8 million in Wipro Limited (NYSE:WIT), compared to 13 funds in the prior quarter worth $62.2 million.
MakeMyTrip Limited (NASDAQ:MMYT) is an online travel company with operations in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company’s operations are divided into three segments – Air Ticketing, Hotels and Packages, and Bus Ticketing.
On December 8, 2022, Morgan Stanley analyst Gaurav Rateria upgraded MakeMyTrip Limited (NASDAQ:MMYT) to Overweight from Equal Weight with a price target of $36. The analyst sees an entry point for investors, especially since the stock underperformed in the prior three months, noting that the robust recovery in travel and MakeMyTrip Limited (NASDAQ:MMYT)’s strong margins make the risk-reward attractive.
According to Insider Monkey’s first quarter database, 12 hedge funds were long MakeMyTrip Limited (NASDAQ:MMYT), with collective stakes worth $85.8 million. Paul Marshall and Ian Wace’s Marshall Wace LLP is the biggest stakeholder of the company, with 1.26 million shares worth $31 million.
Like ICICI Bank Limited (NYSE:IBN), HDFC Bank Limited (NYSE:HDB), and Infosys Limited (NYSE:INFY), MakeMyTrip Limited (NASDAQ:MMYT) is one of the best Indian stocks to buy for the long-term.
