Last Updated on October 31, 2023 by SPN Editor
Mark Mobius, the renowned global investment expert hailing from Mobius Capital Partners, has expressed his optimistic outlook on India’s stock market, anticipating a surge in Sensex at 1 lakh points within the next five years.
In addition to his buoyant long-term perspective on India’s growth story, Mobius has pinpointed four stocks that he believes will demonstrate robust performance.
Amid a backdrop of US 10-year Treasury yields offering a relatively secure 5% return, which has somewhat diminished the case for equities, Mobius remains bullish on India. He has indicated his interest in allocating more funds to the Indian market should there be a further market correction.
Besides predicting Sensex at 1 lakh points, Mark Mobius is placing his bets on four stocks:
- Persistent Systems: The market capitalization of Persistent Systems stands at ₹47,370.42 Crores. The stock’s open price is ₹6,100.00, the close price is ₹6,067.90, and the average traded price is ₹6,143.91.
- APL Apollo Tubes: The current market price (CMP) for APL Apollo Tubes is ₹1,588, with an open price of ₹1,619.
- Dreamfolks Services: Buy prices for Dreamfolks Services are recorded at 489.25, 488.65, 488.25, and 488.00, while sell prices stand at 490.55, 490.60, 492.00, and 493.65.
- MapMyIndia: For June 2022, MapMyIndia reported income, profit, and earnings per share (EPS) figures of 71.41, 24.19, and 4.54, respectively. In March 2023, the company’s income, profit, and EPS were 82.93, 28.02, and 5.59.
Mobius highlights that these companies exhibit low debt, high return on capital ratios, and promising growth prospects.
Recent market volatility, partly driven by escalating global tensions, has resulted in a 3.5% correction in both the Nifty and Sensex over the past two weeks. Mobius acknowledges that while the markets are closely monitoring various global events, including developments in Ukraine, the South China Sea, and Israel, interest rates play a pivotal role.
He also underscores the importance of considering the earnings component of the price-to-earnings (P/E) ratio. In India, strong companies have the potential to achieve an annual growth rate of 12%-13%, double the country’s GDP growth rate.
Mobius expresses particular enthusiasm for MapMyIndia, a company specializing in mapping and utility services, commending its outstanding performance and valuable contributions to mapping and location technology. In 2023, MapMyIndia’s stock has witnessed a significant surge, doubling investors’ wealth.
Mark Mobius acknowledges the rising geopolitical concerns across various regions of the world, noting that different companies can benefit or suffer in conflict situations. For example, stocks related to the military and armaments manufacturing tend to benefit during periods of conflict.
Mobius also appreciates the government led by Prime Minister Narendra Modi, opining that the Bharatiya Janata Party (BJP) is likely to win again in 2024. He admires Modi’s efforts in modernizing India and handling the complexities of unifying different states. Mobius acknowledges the challenging task that Modi has undertaken and commends his leadership.
Mark Mobius has shared that his India portfolio remains unchanged, and he is keenly awaiting the listing of a hardware technology company on the stock exchanges to make investments in that sector.