Raamdeo Agrawal, Chairman and Co-Founder of Motilal Oswal Financial Services, highlighted in his latest Wealth Creation Study that while Asian Paints was his standout pick last year, he now sees IndiGo (InterGlobe Aviation) as a strong opportunity going forward.
Wealth Creation Study
For nearly three decades, Raamdeo Agrawal has published his annual Wealth Creation Study, a widely followed report that analyzes long-term investment trends in India. The study began in 1996 as a statistical review but has since evolved into a thematic exploration of how wealth is created in Indian markets. Each year, Agrawal anchors the study around a key investment philosophy, testing it against Indian market data.
Asian Paints – Last Year’s Highlight
In the previous edition of the study, Asian Paints was spotlighted as a model wealth creator. The company’s consistent growth, strong brand positioning, and ability to compound earnings made it a benchmark example of quality investing. Agrawal emphasized how Asian Paints has delivered steady returns over decades, making it a classic case of a “compounder” stock.
IndiGo – Current Opportunity
This year, Agrawal has shifted focus to IndiGo, India’s largest airline by market share. He believes IndiGo represents a compelling opportunity due to:
- Dominant market position in Indian aviation.
- Strong demand outlook as air travel continues to expand in India.
- Operational efficiency and cost leadership compared to peers.
- Potential for long-term compounding, similar to how Asian Paints has delivered consistent returns.
Agrawal’s view is that India’s rising middle class and increasing disposable income will drive sustained growth in aviation, positioning IndiGo as a major beneficiary.
Broader Outlook
Beyond individual stocks, Agrawal remains optimistic about India’s economic trajectory. He sees the country entering a multi-trillion-dollar growth era, with GDP potentially reaching $16 trillion by 2042. His thesis is that India is only getting wealthier, and companies with strong fundamentals and leadership will continue to create wealth for investors.
In summary: Last year, Raamdeo Agrawal’s Wealth Creation Study spotlighted Asian Paints as a model compounder. This year, he identifies IndiGo as a promising opportunity, driven by India’s booming aviation sector and the airline’s dominant market position.
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