SBI Life, Tata Power and MCX among 10 stocks that can compound their earnings consistently over next 3-5 years

In light of the decadal economic trends that are currently underway, HDFC Securities in its report dated April 16 said that it sees opportunities and has advised investors to bet on some 10 stocks to benefit during the course. 

The listed trends as put by the brokerage are rising discretionary spending and premiumization, economic formulation, digitization, capex/ infra investment, financialisation of savings, Green energy adoption and manufacturing and China plus one.

Also, the country’s GDP is expected to rise from USD 3.57 trillion in FY24E to USD 7 trillion in 2030. This the brokerage pointed out  will be a result of inherent demographic advantages along with consistent policy support. 

So, given all these tailwinds from the suggested trends, the brokerage has come up with a list of stocks from its coverage universe that can compound their earnings consistently over the next 3-5 years while maintaining healthy return metrics and balance sheet.

Additionally, the brokerage has also listed seven more ideas from with m-cap of over Rs 2 lakh crore that in its view offers secular growth stories with healthy RoEs, thereby presenting themselves as low-risk high-visibility growth compounders.All these companies are the leaders in their sectors and best suited to take advantage of the tailwinds of the sectors.