Motilal Oswal names 30 potential multibagger stocks in India’s journey to a $16 trillion economy

Motilal Oswal Financial Services has identified 30 companies that it believes could benefit most as India enters its next multi-decade growth era. The broker expects India’s gross domestic product to rise from $4 trillion today to over $16 trillion by 2042, driven by steady domestic demand, a young demographic, rising productivity and a sustained investment cycle.The company points out that India has achieved a dollar GDP CAGR of 9% over the past two decades, which is equivalent to a 12% CAGR in rupees, after being responsible for an annual depreciation of the currency of around 3%. Motilal Oswal believes the same pattern could continue over the next seventeen years, allowing GDP to quadruple again. A $12 trillion increase in economic output over this period would be unprecedented and would fundamentally reshape the size and influence of India’s corporate sector.

Per capita income, currently near $2,600, is expected to double every nine years if the economy continues at its pace. That would bring GDP per capita to $5,200 in 2034 and more than $10,400 in 2043. Domestic savings are also expected to grow sharply, from $13.5 trillion accumulated over the past two decades to an estimated $47 trillion over the next period. According to Motilal Oswal, this combination of economic growth, rising household incomes and higher national savings creates a powerful runway for wealth creation across multiple sectors.Against this backdrop, the company has created the so-called India MTD Portfolio, a basket of thirty equally weighted stocks selected based on their leadership, scalability and ability to capture long-term structural opportunities. The list covers several sectors, including automotive, banking, capital goods, financial services, healthcare, real estate, telecom and consumer-facing businesses.

Motilal Oswal’s choices in cars include Eicher Motors, Hero MotoCorp, Mahindra & Mahindra and Maruti Suzuki. The brokerage expects rising incomes and rapid consumption-led growth to support expansion over several years, with companies like Maruti Suzuki and Eicher Motors already seeing strong earnings growth.

In financial services, the list includes HDFC Bank, ICICI Bank, SBI, AU Small Finance Bank, Bajaj Finance and Cholamandalam Investment. The company said domestic credit growth, formalization and digital adoption will ensure that private banks and NBFCs remain among the biggest beneficiaries of India’s long-term economic revival. ICICI Bank in particular stands out with a strong earnings trajectory and an attractive valuation relative to its growth profile.

The capital and industrial goods selection includes Larsen & Toubro, Cummins India, Polycab and Waaree Energies. Motilal Oswal expects India’s capex and infrastructure cycle to gain momentum as public and private investments rise, which it believes will boost revenues and profitability for tech and power manufacturers. The broker’s capital markets picks include BSE, MCX, HDFC AMC, Motilal Oswal Financial Services, Nuvama Wealth and Prudent Corporate. As household savings increasingly shift toward equities, mutual funds and structured finance products, the company believes these businesses will experience steady volume growth and high operating leverage.

Healthcare names such as Global Health and Narayana Hrudayalaya also feature in the model portfolio, supported by expectations of rising insurance penetration and demand for affordable, scalable medical services. In real estate, Godrej Properties and Lodha Developers have been included to capture urbanization and consolidation trends.

Telecom giant Bharti Airtel is one of the strongest profit makers in the basket, supported by steady tariff increases, strong data demand and improving cash flows. Meanwhile, insurance and technology platforms such as ICICI Lombard and PB Fintech represent the shift towards digital financial services.

For the basket of 30 stocks, Motilal Oswal highlights a compound earnings growth rate of 39%, a price-to-earnings ratio of 36 times and a PEG ratio of 0.9, indicating strong long-term compounding potential. The company emphasizes that this portfolio is not designed for short-term outperformance, but to capture the wealth creation likely to come from India’s projected $12 trillion economic expansion over the next seventeen years.

Motilal Oswal concludes that the last quadrupling of India’s GDP took 20 years, and the next one could come even faster. For investors, the real opportunities lie in identifying high-quality companies that are able to grow with the economy. According to the report, these 30 stocks represent the strongest candidates to participate in what could be India’s largest wealth creation cycle in history.