Stocks that Morgan Stanley thinks may cross $10 billion market cap in the next three years

BSE and NSE reached their all-time peaks earlier this month before cooling off. Analysts expect more foreign money to flow into Indian markets as Indian stocks gain weight in the MSCI Emerging Markets (EM) index. 

Morgan Stanley, in a research report dated August 13, 2017, said, "Calling the performance of mega caps will likely become more important for institutional portfolios." 

It said, ''As India's domestic institutions grow in size, they will no longer be able to rely on mid- and small-cap stocks to generate outperformance. Making the right mega- and large-cap call may become crucial to generating alpha."

Based on this, Morgan Stanley has come up with its list of 7 companies that are likely to cross $10 billion in market capitalisation over the next three years. 

Ridham Desai and Sheela Rathi of Morgan Stanley, in the report said, "The criteria for our shortlist is a combination of growth and valuations and include: double-digit, two-year forward earnings growth; positive change in return on capital; attractive valuations (implied long-term earnings growth and earnings yield relative to return on assets); and beta (<1.1)."

Can Nifty touch 30,000 in 5 years? Ridham Desai of Morgan Stanley thinks so