Motilal Oswal Private Wealth is deploying significant cash reserves after keeping 20-25% in sidelines. Power emerges as the top allocation theme, driven by surging electricity demand expected to grow 5-6% annually as peak power demand climbs toward 271 gigawatt. Solar capacity is projected to surge 255% over the next decade, with companies pursuing backward integration into manufacturing offering margin expansion potential. Auto ancillary stocks present another high-conviction opportunity, particularly export-oriented firms positioned to benefit from Free Trade Agreements with Europe and UK finalizing in FY27. Decorative aesthetics components offer 24-30% margins at attractive valuations. For financials, mid-size private banks outpace PSU banks with 17% credit growth and 18-19% return on equity, while maintaining low NPA ratios around 0.7%.
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