close_game
close_game

Morgan Stanley picks these stocks that are gaining from India’s capex boom

Jun 20, 2024 02:07 PM IST

India's infrastructure development has seen over the last decade is projected to continue, Morgan Stanley said in a note.

Morgan Stanley said that India's infrastructure and capex is witnessing a boom owing to projects like PM Gati Shakti. The brokerage firm chose Larsen & Toubro, NTPC, Titagarh Rail Systems and Ultratech Cement as key stocks benefitting from the government spend on infrastructure.

Morgan Stanley said that India's infrastructure development has seen over the last decade is projected to continue.(Reuters)
Morgan Stanley said that India's infrastructure development has seen over the last decade is projected to continue.(Reuters)

India's infrastructure development has seen over the last decade is projected to continue, Morgan Stanley said in a note. Analysts expect infrastructure investments to rise from 5.3 percent of GDP in FY24 to 6.5 percent of GDP by FY29, reflecting a robust 15.3 percent compound annual growth rate (CAGR), it said.

Read more: Elon Musk reminds everyone he named OpenAI ‘with a lot of good intentions’

These are Morgan Stanley's stock picks:

1. Larsen & Toubro (L&T)

According to Morgan Stanley, increased government spend on infrastructure projects will likely benefit L&T and an overall improvement in the economy will also be a positive driver for L&T.

2. NTPC

Read more: Namita Thapar's Emcure Pharma gets Sebi approval for IPO: What we know

As per Morgan Stanley, potential upside for NTPC includes faster capacity addition driven by stronger power demand and improving health of State Electricity Boards (SEBs), value-accretive acquisitions, and value unlocking in subsidiaries.

3. Titagarh Rail Systems

For Titagarh Rail Systems, Morgan Stanley said that there are strong earnings visibility from a large backlog and improving return ratios. The foreign brokerage said that an acceleration in passenger segment margins beyond expectations would further enhance the company's financial performance.

Read more: Ola Electric gets Sebi approval for 5,500 crore IPO

4. Ultratech Cement

Morgan Stanley said that medium-term demand visibility for Ultratech Cement remains strong owing to continued demand and a sharp decline in input prices.

Stay updated with the...
See more
Stay updated with the latest Business News on Petrol Price, Gold Rate, Income Tax Calculator along with Breaking News Events and Latest News Updates on Hindustan Times.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, October 14, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On