Goldman Sachs identifies eight stocks to capitalize on the growing affluence trend in India

According to Goldman Sachs, these eight stocks are expected to benefit from the rising affluence trend in India:

Titan: With a 7-8 percent market share in jewelry, Titan is positioned in the upper-income end of jewelry consumption. The brand is priced at a premium due to its aspirational brand, range of offerings, and transparent policies.

Apollo Hospitals: As the disease burden in India shifts towards lifestyle-related issues, Apollo Hospitals, with its industry-leading ARPOB and clinical outcomes, is well-positioned to attract affluent Indians seeking high-end tertiary/quaternary care.

Phoenix Mills: The analysts believe that Phoenix’s mall portfolio is poised for 25 percent EBITDA growth CAGR, driven by the rising cohort of ‘Affluent India,’ in-mall tenant premiumization, and new mall additions.

MakeMyTrip (MMYT): As the Indian travel industry is expected to grow, MMYT, being India’s largest online travel platform, is forecasted to benefit with a 20 percent/34 percent FY24E-27E revenue/EBITDA CAGR.

Zomato: With the number of transacting users in the online grocery and food delivery industry expected to be a subset of ‘Affluent India,’ Zomato is projected to experience 22-45 percent FY24E-27E GOV (gross order value) CAGR.

Devyani and Sapphire (Yum Indian franchisees): The analysts are optimistic about KFC's growth prospects in India, especially with KFC's initiatives to improve unit economics and dominance in the fried chicken segment.

Eicher Motors: Royal Enfield, a brand of Eicher Motors, is expected to benefit from the premiumization trend in the automotive sector, lower near-term risk from electrification in premium motorcycling, and a strong pipeline of upcoming product launches.

It's important to note that investing in stocks involves risks, and individuals should conduct their own research or consult with a financial advisor before making investment decisions.

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