HDFC Securities remains optimistic about the prospects of the Indian economy and the company’s earnings growth in the next few years. On this basis, the brokerage company chose 9 small and medium-sized stocks, which investors can invest in for a long time.

Mahindra and Mahindra | The company’s goal is to increase the sales of foreign agricultural machinery from the current 37% to more than 50%, while increasing the market share of domestic tractors from the current 43% to 50%. Three major overseas regions: Japan has increased from the current US$450 million to US$1 billion, the United States has increased from US$470 million to US$1 billion, and Turkey has increased from the current US$240 million to US$500 million.

Dr. Reddy’s laboratory, such as Dr. Dr. Reddy, is based on the following: 1) Extensive income structure, 2) High attention to domestic business, 3) Injectable product line applicable to the US and EU 4) Healthy balance sheets and profit margins, and 5) FDA approval of all major companies.

GAIL India| Gael’s natural gas transportation business is expected to benefit from (1) growth in domestic natural gas production, (2) growth in demand for LNG, and (3) the completion of large-scale natural gas pipelines in eastern and southern India. Its dominant position in pipeline infrastructure should be the biggest beneficiary.

Aurobindo Pharma | HDFC remains optimistic in Aurobindo due to the following reasons: a) strong complex injections (manufacturing/production capacity), b) healthy API business within three years, c) business profitability in Europe increased, d) medium-term immunization opportunities increased , E) Finance reduces leverage.

NMDC| Management expects to produce 35-36 million tons of production within 21 fiscal years.Production is expected to increase to 40 million tons in FY22. The commissioning of the steel plant (scheduled in June 2021, requiring international experts to travel) is another incentive for action.

ACC |Despite the ongoing investment, ACC’s balance sheet is debt-free and liquidity is in good condition. In addition, it has strong operating cash flow. It is expected that the working capital day will remain stable, which in turn will help the company have a strong balance sheet.

Hindustan Petroleum Company | HDFC Securities We expect GRM to recover from the recovery of economic activity and lower operating costs (due to weak LNG prices), which will support profitability. As of March 31, 2020, independent large amounts of cash flow and large amounts of cash and cash equivalents are 54.58 billion rupees, and HPCL’s liquidity is expected to remain strong.

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