Modi Stocks to Add to Your Watchlist Before Election Results
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Jun 2, 2024
Image Source: https://www.pmindia.gov.inThe other day, I was searching for trending topics and not surprisingly, the keyword ‘Modi Stocks’ popped up at the top.
That’s right.
Not Tata, Ambani or even Adani, Modi stocks has emerged as the buzzword ever since a global brokerage firm highlighted not 10, not 20… but a total of 54 stocks considered as direct beneficiaries of PM Modi’s policies.
While noting that 90% of Modi stocks have beaten the benchmark Nifty 50 index over the past 6 months, market experts are now predicting this strong rally may continue in case of a strong election result.
Before we look at the highest profit-potential Modi stocks, let’s understand the term, prospects, and how these stocks emerged as prime beneficiaries.
What are Modi Stocks?
Simply put, Modi stocks are related to capex and infrastructure linked sectors. They could be either PSUs or stocks of some corporate houses.
These stocks are seen as direct beneficiaries of popularly expected policy measures from Modi 3.0.
You see, Narendra Modi was elected as the Prime Minister of India in 2014 with the promise of hope and change.
Ever since then, the Modi led government has made it a mission to steer ‘New India’ towards the path of development and progress.
Popular schemes like the Swachh Bharat Mission, Jan Dhan Yojana, PM Awas Yojana, among several others have transformed the lives of the poor and have helped raise their standard of living.
These schemes have not only transformed India but also provided a big boost to some sectors and specific stocks.
For example, the Swachh Bharat Mission gave a big boost to companies from the ceramics and sanitary ware sector.
Among plastic products, companies like Nilkamal Ltd and Supreme Industries saw a huge uptick in consumption of dustbins, water tanks, etc.
With rollout of multiple schemes in the coming years, Modi Stocks will be in extreme focus.
List of Modi Stocks
Here’s the list of Modi Stocks according to the global brokerage firm.
| Company | Current Price | 6 Months | 1-Year | Dividend (Rs) | ROE (%) | ROCE (%) | Debt to Equity | Promoter Holding (%) |
|---|---|---|---|---|---|---|---|---|
| ABB India Ltd. | 8316.85 | 90% | 111% | 29.3 | 22.9 | 30.8 | 0.0 | 75.0 |
| ACC Ltd. | 2546.15 | 34% | 41% | 7.5 | 14.1 | 17.8 | 0.0 | 56.7 |
| Adani Enterprises Ltd. | 3411.45 | 44% | 37% | 1.3 | 18.6 | 22.6 | 0.3 | 72.6 |
| Adani Ports | 1437.70 | 74% | 96% | 6.0 | 6.0 | 7.4 | 1.7 | 65.9 |
| Ambuja Cements Ltd. | 634.30 | 43% | 48% | 2.0 | 8.1 | 10.0 | 0.0 | 66.7 |
| Ashok Leyland Ltd. | 224.00 | 27% | 52% | 2.6 | 17.6 | 21.4 | 0.4 | 51.5 |
| Bank Of Baroda | 265.15 | 31% | 43% | 5.5 | 15.3 | 13.5 | 1.0 | 64.0 |
| Bharat Electronics Ltd. | 296.10 | 101% | 162% | 1.8 | 23.5 | 31.3 | 0.0 | 51.1 |
| Bharat Forge Ltd. | 1555.10 | 34% | 95% | 7.0 | 14.1 | 13.8 | 0.6 | 45.3 |
| Bharat Heavy Electricals Ltd. | 298.95 | 75% | 265% | 0.4 | 1.7 | 3.3 | 0.2 | 63.2 |
| BPCL | 627.60 | 43% | 72% | 4.0 | 3.6 | 6.2 | 0.7 | 53.0 |
| Bharti Airtel Ltd. | 1371.85 | 35% | 66% | 4.0 | -0.1 | 7.9 | 1.8 | 53.5 |
| Canara Bank | 118.00 | 44% | 91% | 2.4 | 17.1 | 15.1 | 0.9 | 62.9 |
| Coal India Ltd. | 491.25 | 42% | 113% | 24.3 | 89.5 | 91.3 | 0.0 | 63.1 |
| Container Corporation | 1077.65 | 37% | 63% | 11.0 | 10.6 | 14.6 | 0.0 | 54.8 |
| Cummins India Ltd. | 3552.70 | 85% | 103% | 25.0 | 22.1 | 27.5 | 0.1 | 51.0 |
| Dalmia Bharat Ltd. | 1774.95 | -22% | -17% | 9.0 | 2.5 | 2.6 | 0.0 | 55.8 |
| Dixon Technologies (India) Ltd. | 9395.95 | 58% | 140% | 3.0 | 20.5 | 26.9 | 0.1 | 33.4 |
| GAIL (India) Ltd. | 204.35 | 50% | 94% | 5.0 | 9.5 | 10.5 | 0.3 | 51.9 |
| GMR Airports Infrastructure Ltd. | 84.60 | 39% | 107% | 0.0 | 0.1 | 0.7 | 0.1 | 59.1 |
| Gujarat Gas Ltd. | 551.70 | 27% | 13% | 6.7 | 24.2 | 32.0 | 0.0 | 60.9 |
| Hindustan Aeronautics Ltd. | 4977.85 | 102% | 223% | 27.5 | 27.2 | 30.6 | 0.0 | 71.6 |
| Hindustan Copper Ltd. | 355.80 | 103% | 219% | 0.9 | 14.8 | 18.1 | 0.1 | 66.1 |
| HPCL | 537.05 | 55% | 106% | 0.0 | -27.0 | -11.2 | 2.3 | 54.9 |
| Indian Oil Corporation Ltd. | 162.40 | 46% | 79% | 3.0 | 6.2 | 6.5 | 1.0 | 51.5 |
| IRCTC Ltd | 1021.70 | 46% | 57% | 5.5 | 46.3 | 63.0 | 0.0 | 62.4 |
| Indraprastha Gas Ltd. | 443.40 | 12% | -6% | 13.0 | 20.6 | 27.9 | 0.0 | 45.0 |
| Indus Towers Ltd. | 348.00 | 85% | 120% | 0.0 | 9.4 | 16.6 | 0.2 | 69.0 |
| Interglobe Aviation Ltd. | 4181.30 | 52% | 78% | 0.0 | 0.0 | 0.0 | -0.4 | 57.3 |
| Jindal Steel & Power Ltd. | 1028.80 | 49% | 102% | 2.0 | 6.0 | 8.3 | 0.3 | 61.2 |
| JK Cement Ltd. | 3876.15 | 6% | 21% | 15.0 | 12.6 | 13.8 | 0.7 | 45.7 |
| Larsen & Toubro Ltd. | 3667.40 | 15% | 66% | 24.0 | 11.3 | 13.9 | 0.3 | – |
| Mahanagar Gas Ltd. | 1297.80 | 22% | 21% | 26.0 | 20.4 | 27.5 | 0.0 | 32.5 |
| NALCO | 191.55 | 104% | 131% | 4.5 | 12.0 | 15.3 | 0.0 | 51.3 |
| NMDC Ltd. | 260.15 | 43% | 143% | 6.6 | 27.5 | 36.4 | 0.0 | 60.8 |
| NTPC Ltd. | 358.90 | 33% | 106% | 7.3 | 12.9 | 10.4 | 1.3 | 51.1 |
| ONGC | 264.55 | 36% | 72% | 11.3 | 15.7 | 20.9 | 0.0 | 58.9 |
| Petronet LNG Ltd. | 297.55 | 47% | 33% | 10.0 | 22.8 | 32.2 | 0.0 | 50.0 |
| Polycab India Ltd. | 6746.40 | 29% | 94% | 20.0 | 21.1 | 28.4 | 0.0 | 65.2 |
| PFC Ltd | 492.70 | 35% | 236% | 10.6 | 18.2 | 9.3 | 5.3 | 56.0 |
| Power Grid | 309.90 | 47% | 77% | 11.1 | 19.3 | 13.0 | 1.5 | 51.3 |
| Punjab National Bank | 129.40 | 60% | 150% | 0.7 | 2.8 | 5.5 | 0.6 | 73.2 |
| REC Ltd. | 537.65 | 44% | 283% | 12.6 | 20.6 | 9.1 | 6.6 | 52.6 |
| Reliance Industries Ltd. | 2859.60 | 19% | 16% | 9.0 | 9.1 | 9.8 | 0.5 | 50.3 |
| Shree Cement Ltd. | 24735.40 | -8% | -2% | 100.0 | 7.5 | 9.1 | 0.1 | 62.6 |
| Siemens Ltd. | 6964.15 | 86% | 97% | 10.0 | 15.5 | 21.1 | 0.0 | 75.0 |
| State Bank Of India | 830.10 | 45% | 42% | 13.7 | 18.8 | 12.9 | 1.7 | 57.5 |
| Steel Authority Of India Ltd. | 158.40 | 70% | 93% | 1.5 | 3.7 | 6.1 | 0.6 | 65.0 |
| Tata Power Company Ltd. | 436.80 | 58% | 103% | 2.0 | 26.6 | 17.8 | 1.6 | 46.9 |
| The India Cements Ltd. | 204.55 | -19% | -3% | 0.0 | -3.6 | -2.1 | 0.6 | 28.4 |
| Indian Hotels | 556.05 | 30% | 41% | 1.8 | 11.5 | 16.4 | 0.0 | 38.1 |
| The Ramco Cements Ltd. | 742.20 | -26% | -18% | 2.0 | 5.2 | 6.6 | 0.7 | 42.3 |
| Ultratech Cement Ltd. | 9901.35 | 10% | 26% | 38.0 | 9.6 | 13.2 | 0.2 | 60.0 |
| Vodafone Idea Ltd. | 15.26 | 15% | 113% | 0.0 | 0.0 | -4.6 | -2.7 | 48.9 |
More than half of them are government owned entities (PSUs).
What to Expect After Elections?
Indian investors are convinced that the BJP will come back to power for another term.
Most of the investors I spoke with brought up some version of the following – Elections create opportunities for entries to new investment positions, but they rarely lead to mass selling or position exits.
Over the last 10 years, the Modi led government has been able to identify what the people need and create schemes for them.
With further rollout of multiple schemes, the government is expected to provide a boost to the economy and various sectors stand to gain from these initiatives.
As the saying goes, “the more things change, the more they stay the same.” This election appears to be no different.
Investors can use the top-down investment strategy to determine strength of particular sectors that stand to gain from Modi 3.0 and then pick the strongest stocks within those sectors to maximise returns.
You could also look at the stocks that we’ve highlighted in the below editorials… according to our research, the BJP’s manifesto could potentially benefit these stocks over the next 5 years.
Happy Investing!
Safe Stocks to Ride India’s Lithium Megatrend
Lithium is the new oil. It is the key component of electric batteries.
There is a huge demand for electric batteries coming from the EV industry, large data centres, telecom companies, railways, power grid companies, and many other places.
So, in the coming years and decades, we could possibly see a sharp rally in the stocks of electric battery making companies.
If you’re an investor, then you simply cannot ignore this opportunity.
Details of our SEBI Research Analyst registration are mentioned on our website – www.equitymaster.com
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
Yash Vora is a financial writer with the Microcap Millionaires team at Equitymaster. He has followed the stock markets right from his early college days. So, Yash has a keen eye for the big market movers. His clear and crisp writeups offer sharp insights on market moving stocks, fund flows, economic data and IPOs. When not looking at stocks, Yash loves a game of table tennis or chess.
Read More: Modi Stocks to Add to Your Watchlist Before Election Results