Unlock the treasure chest! Goldman Sachs spills the secrets on India's booming affluent scene in their latest report, 'The Rise of Affluent India.' Brace yourself for a rollercoaster ride with eight handpicked stocks ready to skyrocket in a market fueled by those earning over $10,000 a year. These stocks aren't just players – they're champions, with top-notch quality, fierce competition, and a lion's share of the market. Let’s discover the untapped riches waiting for you in India's Affluent Landscape!

Goldman Sachs’ 8 Handpicked Stocks

Below is the compiled list of 8 stocks handpicked by Goldman Sachs:

Overview of the Stocks

Titan

Titan's jewelry dominates with a 7-8% market share in FY22, primarily among the well-off. Its focus on high-end diamond and intricate gold sets it apart. Priced premium due to aspiration, variety, and transparent policies, Titan anticipates a boost from a 12% CAGR growth in 'Affluent India.' Expanding into new cities, emphasizing regional wedding jewelry, and global ventures, Titan aims to soar in market share.

Apollo Hospitals

Apollo leads in healthcare as lifestyle diseases rise. Their Avergae Revenue Per Occupied Bed(ARPOB) is top-notch, driven by extensive tertiary/quaternary care and a powerhouse of 13,200 skilled doctors. With stellar clinical outcomes, Apollo attracts Affluent Indians who value quality healthcare. In FY23, 84% of payors were high-income households, expecting continued dominance. Growing health insurance is boosting ARPOB, marking Apollo as a leader in India's evolving healthcare landscape.

Phoenix Mills

Analysts foresee a robust 25% EBITDA growth (FY23-FY27) for Phoenix's malls, driven by Affluent India's rise, premium tenant upgrades, and new additions. Post-FY27, they anticipate a steady 10-12% annual organic consumption growth, aligning with consumer discretionary trends. Mature malls boast a solid 15% post-tax ROCE, enabling Phoenix to reinvest without resorting to leverage. Phoenix's established retailer rapport reduces earnings risk, with new malls often pre-leased up to 70% upon announcement, showcasing its industry credibility. In H1FY24, 90% of consumption in Phoenix malls caters to the discretionary needs of 'Affluent India.'

Make My Trip

India's travel industry is set for a 13% FY24E-27E CAGR, aligning with Affluent India's growth, with online travel expected to surge at 15%. Premium categories like international travel and upscale hotels are projected to lead, fueled by online adoption and rising incomes. MMYT, commanding 50% market share, is predicted to ride this wave with a robust 20%/34% FY24E-27E revenue/EBITDA CAGR. Positioned as a key player in India's affluent segment, MMYT's exposure to under-penetrated hotel and international travel sectors is a growth catalyst. With unmatched scale and a robust balance sheet, analysts foresee MMYT maintaining market dominance and the highest revenue growth among global peers.

Zomato

Analysts project India's online grocery and food delivery industry, with 25-30 million monthly users, to align with the 13% growth in 'Affluent India.' Anticipated increases in average order value and online adoption are set to drive a substantial 20-35% gross order value CAGR from FY24E-27E. For Zomato, a key player, the focus on monthly transacting users is poised to fuel a robust 22-45% CAGR in gross order value. Analysts foresee the user base in these sectors mirroring income level growth.

Devyani and Sapphire

Yum India franchisees signal promising growth for KFC, especially in the thriving Quick Service Restaurant (QSR) sector, boasting a 25% CAGR from FY10-20, primarily driven by Affluent India. With around 30 million QSR customers within an estimated 60 million Affluent Indians, KFC stands out with just 1,000 outlets compared to 3,000 pizza QSRs. Improved unit economics post-FY19, including smaller stores and increased food aggregator deliveries, enhance KFC's appeal. As the leading fried chicken player in India, Goldman Sachs anticipates a rebound in KFC's average daily sales per store from FY25 onward.

Eicher Motors

Royal Enfield, often the second or third choice in motorcycle ownership, positions itself as aspirational with an average selling price 3 times that of the average motorcycle. The brand benefits from a favorable market trend with the 350cc+ segment consistently outgrowing the broader 2W market (11% CAGR vs flat growth from FY15-FY23). Notably, Royal Enfield is well-positioned in the premium automotive buying trend, with a lower near-term risk from electrification in premium motorcycling. Additional strengths include a robust product pipeline, resilience against competitive threats, and potential profitability from accessories/merchandising business.

The Bottom Line

Ready to ride the wealth wave? Goldman Sachs handpicked 8 stocks for gains in India's upscale scene. Time to invest and watch your profits soar!