Potential Wealth Creators for the Next 25 years Listed out by Motilal Oswal:-
Motilal Oswal 25th Annual Wealth Creation study 2020 recommends 25 stocks for the next 25 years for those who are patient and have enough room for the long run.
Raamdeo Agarwal, Managing Director, recommends Ajanta Pharma, Alembic Pharma, Astral Poly Tech, AU Small Finance Bank, Bajaj Finance, HDFC Bank, HDFC life insurance, Bata India, Bare crop science, Coromandel International, Dixon Technologies, Dr Lal Pathlabs, Honeywell Automation, ICICI Lombard, ICICI Securities and Indiamart Intermesh, among others.
These shortlisted stocks ranked from 101st to 250th in terms of market capitalisation. Consumer-facing, secular business models, and eliminated cyclical businesses lie auto auxiliaries, capital goods, chemicals, oil and gas.
Agarwal said, "This reduced the list of companies from 150 to 114." Since he chose companies that 15% average return on equity over the past five years. Further, the list was reduced from 114 to 63.
After the management potential applied another set of parameters the list reduced more from 63 to 28.
Motilal Oswal said, " We have observed that in situations of value migration, all companies benefit irrespective of market leadership. So of the 28, we selected five beneficiaries of value migration, taking the total list of shortlisted stocks to 18."
The brokerage believes financial services to be risky and stated, "We mainly opted for large-caps in financials and roped in six leading names for the portfolio, taking the total to 24. Finally, we opted for a pure digital play, even if it didn't meet some of the above filters, taking it to total 25."