Mark Mobius, global investment expert from Mobius Capital Partners, said he holds an optimistic view of India’s stock market and expects the Sensex to hit 1 lakh points in the next five years. The veteran investor even named four stocks he expects to perform strongly.

What Happened: Mobius pointed out that with US 10-year Treasury yields offering a relatively safe return of 5%, the case for equities appears somewhat weakened, Moneycontrol reported. Nevertheless, he remains bullish on India’s long-term growth story and indicated interest in deploying more cash into the Indian market if there’s a further correction.

Here are the four stocks that Mobius said he was betting on to do well:

1. Persistent Systems
2. APL Apollo Tubes
3. Dreamfolks Services
4. MapMyIndia

Mobius told the business news website that these companies have low debt, high return on capital ratios and good growth ahead of them.

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Recent market fluctuations, partly triggered by rising global tensions, have led to a 3.5% correction in the Nifty and Sensex over the past two weeks. Mobius believes that while several global events, such as developments in Ukraine, the South China Sea and Israel, are being closely monitored by the markets, interest rates play a pivotal role.

Mobius acknowledged that India’s price-to-earnings (P/E) ratio might appear relatively high compared to other emerging markets. However, he emphasized the significance of considering the earnings component of the 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, he said.

Mobius has especially expressed enthusiasm for MapMyIndia, a company that specialises in mapping and utility services. He cited the company’s impressive performance and its valuable contribution to mapping and location technology. MapMyIndia’s stock has seen a significant increase in 2023, doubling investors’ wealth.

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