Recently, the best India stocks to buy saw a price correction as a result of its elections. With its Prime Minister narrowly winning reelection, the country’s pro-business future could be less certain than before. Modi’s policies had previously enticed investment in the country, but now his party has lost its parliamentary majority. As a result, he may not be able to pursue legislation as effectively.
However, India’s stock market is now the fourth largest in the world as the country rapidly develops. Its education systems and focus on intellectual quality have made India a serious contender in the business world. Moreover, much like China in the 80s and 90s, India has a competitive manufacturing and services edge of cheap labor due to its lower economic standards.
This has led to predictions of a $7 trillion GDP by 2030 as it races toward a developed economy. For investors, finding the right India stocks to buy at the right time on this growth trajectory could yield lucrative long-term results.
Bharti Airtel (BHRQY)
One of the world’s top three mobile operators, Bharti Airtel (OTCMKTS:BHRQY) has grown to gargantuan proportions over 20 years. The company is headquartered in India but has expanded to reach 500 million customers across South Asia and Africa. Its service network now spans 17 countries, representing the company’s appetite for competitive international pricing among India stocks to buy.
Specifically, the company is now India’s largest communications provider and the second-largest mobile operator in Africa. It has been able to achieve this through an affordable mix of 4G and 5G mobile broadband networks as well as fiber optics networks.
For the company’s most recent quarterly results marked as Q4 2024, which ended in March, the company reported $4.5 million in revenue. This represents a healthy 4.4% year-over-year increase and will likely support the company’s continued expansion. Much of this revenue comes from the company’s data traffic growth of 25% in the same time frame, underscoring its successful telecom market capture.
Bajaj Finance (BJJQY)
Defined as a deposit-taking non-banking financial company, Bajaj Finance (OTCMKTS:BJJQY) has been at the forefront of India’s rapid growth. This stems from its central business model, which focuses mainly on low-level lending like consumer and personal loans. Such a strategy has enabled the company to expand from vehicle financing to a vast network of loan options.
Today the company offers everything from business loans to surgery financing and beyond. Essentially, the company has enabled economic growth by loan provisions to the individual and small business levels. Thus, the company maintains a deep relationship with the base of India’s economy and will grow alongside the country’s prospects.
Its recent Q4 2024 earnings reports reflect its importance to the Indian economy as it unveiled stunning year-over-year growth across several categories. Bajaj’s assets under management grew to $39 billion, marking a 34% increase YOY. This has greatly expanded its competitive moat in the Indian financial landscape and will likely keep it ahead of other India stocks to buy.
Tech Mahindra (TCHQY)
One of India’s premier information technology companies, Tech Mahindra (OTCMKTS:TCHQY) has strategically expanded itself through partnerships with American tech companies. One example of this strategy is Tech Mahindra’s partnership with Cisco Systems (NASDAQ:CSCO) to improve firewall service. A move like this both makes Tech Mahindra more marketable and allows for significant upskilling opportunities for its workforce.
These are the kinds of global strategic moves that have enabled Tech Mahindra to reach 70 countries worldwide and derive $1.54 billion in revenue for Q4 2024. These metrics are accompanied by $500 million in new deals for the company, as it focuses on efficiently competing in the IT sector.
These numbers highlight for investors the competitive advantage that the Indian education system has provided its workforce. The result? Quality, yet low-cost workers when compared to Western alternatives. As the future of tech becomes increasingly global, companies like Tech Mahindra contain return high potential for U.S. investors.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
