Five Sectors To Watch For Future Multi-Bagger Stocks
Tuesday, 16 August 2022, 07:07 IST
Investing in share market is like gambling, one doesn't know what might come up next. It is always wise to invest in stocks for long-term. Long-term investors need to be disciplined and patient because they must be willing to accept a certain level of risk while they wait for greater profits in the future. The future of a company's product or service is the most crucial factor to take into account when investing in businesses over the long run. This means that for at least the next 10-15 years, the products should be in use. The last thing you want is for the product to become obsolete and the company to go out of business. Furthermore, it is important to invest in areas that are developing, to generate good long-term returns from stocks. Few sectors in India, such as technology, banks, mining, and others, were good in the past and developing at a decent pace. However, some of these sectors are hardly in trend these days.
Hence, with changing times, one should invest in sectors that have scope for growth. Here's a list of five sectors that are expected to grow in the next few years.
Chemical
The sixth-largest chemical manufacturer in the world is India. Over 80,000 commercial commodities are covered by the enormously diverse chemical industry, which can be broken down into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. India ranks 14th in chemical exports and 8th in chemical imports globally, making it a leader in both areas. The recovery of domestic demand and robust exports would cause specialty chemical producers' expenditure to rise by 50 percent YoY to US $ 815-842 million in the upcoming fiscal year.
Despite a decline in polymer demand brought on by the COVID-19 epidemic, India's agrochemical and pesticide production are predicted to increase to 32 m tonnes by 2030. To promote domestic agrochemical production, the government advises implementing a production-linked incentive (PLI) program. In the Union Budget for 20222023, the Department of Chemicals and Petrochemicals received US $27.43 Million. The chemical industry has a bright future, and with rising demand and capital expenditure plans, one can anticipate strong profits from this industry.
[CIOS_QUOTES_REPLACE
Green Energy
India has experienced the fastest increase in renewable energy capacity addition over the past seven years among all major countries, increasing 18 times from 2.6 GW in March 2014 to 49.3 GW by the end of 2021. The widespread use of sustainable energy has been made possible by quick technological breakthroughs, financial incentives from the government for solar panels, and the rising affordability of solar energy storage batteries. The solar industry has seen a lot of investments and advancements during the past few years.
The Union Budget for 202223 included 1 billion rupees for the Solar Energy Corporation of India (SECI), which is currently in charge of the growth of the whole renewable energy sector. It has already conducted extensive central solar park auctions, awarding contracts for 47 parks with a combined capacity of more than 25 GW. In the future, it is expected that solar energy would contribute about 280 GW, or about 60 percent, of the nation's energy needs. India's renewable energy sector is forecast to grow in 2022 with an investment of US $ 15 billion, as the government focuses on the manufacturing of electric vehicles, green hydrogen, and solar equipment.
EV Vehicles
Investors are increasingly interested in any business that has even a passing connection to electric automobiles. The India Energy Storage Alliance forecasts that the country's EV industry will expand at a CAGR of 36 percent through 2026. The market for EV batteries is also anticipated to expand at a CAGR of 30 percent throughout that time. The COVID-19 pandemic has been overcome, and the Indian automobile industry is expected to rise quickly between 2022 and 2023. Sales of electric cars, particularly two-wheelers, are anticipated to rise in 20222023. India is anticipated to create 50 million jobs by 2030 and become a global leader in shared transportation, opening the path for electric and autonomous vehicles. In response to government intentions for this industry, several automakers are entering the electric car market. By 2030, an estimated US $ 180 billion in vehicle production and charging infrastructure would be needed to satisfy India's EV goals. In light of these government activities, one may envision how multi-bagger stocks in this industry would develop in the future.
Multiplex
One of the biggest victims of the COVID-19 outbreak was the multiplex sector. The industry suffered significant losses as a result of all the limitations and regulations that were put in place during the pandemic's first 18 months. The multiplex industry, however, is probably going to be one of the multi-bagger industries of the future now that the globe is saying goodbye to the epidemic. Leading multiplex chains in India, PVR, and Inox Leisure, recently announced their merger. The merger is anticipated to boost free cash flow, bargaining power, and cost synergies for the amalgamated corporation, thus the investors reacted to the news with tremendous elation.
PVR has an agreement with property developer M3M India and is now working with 860 screens. To set-up the forthcoming property, PVR is investing 240300 million rupees. By the end of 2023, Carnival Cinemas intends to have more than doubled its number of screens to 1,000.
Healthcare
The COVID-19 epidemic gave the healthcare industry a boost. Many companies related to medicine experienced price increases. Investors now have a generally neutral outlook on the Indian healthcare sector, indicating that they believe long-term growth rates will remain stable. Over the past three years, the earnings of enterprises in the healthcare sector have increased by 15 percent annually. These businesses' annual revenue growth has been 9.3 percent. This indicates that these businesses are producing more sales overall, and as a result, their earnings are rising as well.
In the next five years, analysts anticipate that the medical equipment sector will experience annual earnings growth of 28 percent. This is an improvement over its prior annual earnings growth rate of 2.4 percent. In contrast, the Life Sciences industry is expected to grow its earnings by 7.7 percent YoY. These are the sectors that may give growing returns in the u future. These sectors are backed by government policy and public interest in the product/ service provided by the company. However, the market is volatile everyday is different, it is very necessary to invest carefully. Remember, think twice, and invest wisely.
Hence, with changing times, one should invest in sectors that have scope for growth. Here's a list of five sectors that are expected to grow in the next few years.
Chemical
The sixth-largest chemical manufacturer in the world is India. Over 80,000 commercial commodities are covered by the enormously diverse chemical industry, which can be broken down into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. India ranks 14th in chemical exports and 8th in chemical imports globally, making it a leader in both areas. The recovery of domestic demand and robust exports would cause specialty chemical producers' expenditure to rise by 50 percent YoY to US $ 815-842 million in the upcoming fiscal year.
Despite a decline in polymer demand brought on by the COVID-19 epidemic, India's agrochemical and pesticide production are predicted to increase to 32 m tonnes by 2030. To promote domestic agrochemical production, the government advises implementing a production-linked incentive (PLI) program. In the Union Budget for 20222023, the Department of Chemicals and Petrochemicals received US $27.43 Million. The chemical industry has a bright future, and with rising demand and capital expenditure plans, one can anticipate strong profits from this industry.
[CIOS_QUOTES_REPLACE
Green Energy
India has experienced the fastest increase in renewable energy capacity addition over the past seven years among all major countries, increasing 18 times from 2.6 GW in March 2014 to 49.3 GW by the end of 2021. The widespread use of sustainable energy has been made possible by quick technological breakthroughs, financial incentives from the government for solar panels, and the rising affordability of solar energy storage batteries. The solar industry has seen a lot of investments and advancements during the past few years.
The Union Budget for 202223 included 1 billion rupees for the Solar Energy Corporation of India (SECI), which is currently in charge of the growth of the whole renewable energy sector. It has already conducted extensive central solar park auctions, awarding contracts for 47 parks with a combined capacity of more than 25 GW. In the future, it is expected that solar energy would contribute about 280 GW, or about 60 percent, of the nation's energy needs. India's renewable energy sector is forecast to grow in 2022 with an investment of US $ 15 billion, as the government focuses on the manufacturing of electric vehicles, green hydrogen, and solar equipment.
EV Vehicles
Investors are increasingly interested in any business that has even a passing connection to electric automobiles. The India Energy Storage Alliance forecasts that the country's EV industry will expand at a CAGR of 36 percent through 2026. The market for EV batteries is also anticipated to expand at a CAGR of 30 percent throughout that time. The COVID-19 pandemic has been overcome, and the Indian automobile industry is expected to rise quickly between 2022 and 2023. Sales of electric cars, particularly two-wheelers, are anticipated to rise in 20222023. India is anticipated to create 50 million jobs by 2030 and become a global leader in shared transportation, opening the path for electric and autonomous vehicles. In response to government intentions for this industry, several automakers are entering the electric car market. By 2030, an estimated US $ 180 billion in vehicle production and charging infrastructure would be needed to satisfy India's EV goals. In light of these government activities, one may envision how multi-bagger stocks in this industry would develop in the future.
Multiplex
One of the biggest victims of the COVID-19 outbreak was the multiplex sector. The industry suffered significant losses as a result of all the limitations and regulations that were put in place during the pandemic's first 18 months. The multiplex industry, however, is probably going to be one of the multi-bagger industries of the future now that the globe is saying goodbye to the epidemic. Leading multiplex chains in India, PVR, and Inox Leisure, recently announced their merger. The merger is anticipated to boost free cash flow, bargaining power, and cost synergies for the amalgamated corporation, thus the investors reacted to the news with tremendous elation.
PVR has an agreement with property developer M3M India and is now working with 860 screens. To set-up the forthcoming property, PVR is investing 240300 million rupees. By the end of 2023, Carnival Cinemas intends to have more than doubled its number of screens to 1,000.
Healthcare
The COVID-19 epidemic gave the healthcare industry a boost. Many companies related to medicine experienced price increases. Investors now have a generally neutral outlook on the Indian healthcare sector, indicating that they believe long-term growth rates will remain stable. Over the past three years, the earnings of enterprises in the healthcare sector have increased by 15 percent annually. These businesses' annual revenue growth has been 9.3 percent. This indicates that these businesses are producing more sales overall, and as a result, their earnings are rising as well.
In the next five years, analysts anticipate that the medical equipment sector will experience annual earnings growth of 28 percent. This is an improvement over its prior annual earnings growth rate of 2.4 percent. In contrast, the Life Sciences industry is expected to grow its earnings by 7.7 percent YoY. These are the sectors that may give growing returns in the u future. These sectors are backed by government policy and public interest in the product/ service provided by the company. However, the market is volatile everyday is different, it is very necessary to invest carefully. Remember, think twice, and invest wisely.
