Top 2 Sectors for Investing – If you are looking to make money from investing and stock market trading in 2024, then you have come to the right place. In this blog, I will discuss five sectors that are expected to have significant growth potential in the next few years. We will delve into why these sectors are expected to perform well and how you can benefit from them.
Top 2 Sectors for Investing and Stock Market Trading in 2024
Healthcare Sector
Top 2 Sectors for Investing – The first sector that has the potential for substantial growth in 2024 is the healthcare sector. The expected healthcare expenditure as a percentage of GDP is projected to be around 2.5%. The current expenditure on healthcare in India is 2% of GDP, and it is expected to increase gradually. This growth is attributed to the development of the country, which is transforming from a developing country to a developed country by 2035-2040.
As the healthcare expenditure increases, the technical advancements in developed countries will also spill over to tier two and tier three cities. Consequently, health infrastructure in these cities will witness significant development. While some people still prefer government hospitals in tier two and tier three cities, the trend is gradually shifting towards private hospitals. Therefore, investing in healthcare companies operating in this sector can be highly profitable.
Apollo Hospital Enterprises Limited
One such company is Apollo Hospital Enterprises Limited. With numerous private hospitals located in Bangalore, New Delhi, Ahmedabad, Mumbai, Pune, Bhubaneswar, and Madurai, Apollo Hospitals are considered one of the best in terms of quality. The company has a market capitalization of INR 92,000 crore and offers returns on capital employed (ROCE) of 14.5% and return on equity (ROE) of 13.7%. Over the past five years, it has achieved a compounded sales growth of 15% and a compounded profit growth of 67%.
If we analyze the chart, we can observe that the stock has been consistently trending upwards. However, it faces a strong support level at 5900, and if it breaks below this level, it may come down further. Therefore, it is advisable to consider buying the stock if it reaches the support level of 5900, as it has proven to be a strong support in the past.
Narayana Rudra Limited
Narayana Rudra Limited is another prominent healthcare company. With hospitals in several cities such as Bangalore, New Delhi, Ahmedabad, and Mumbai, the company operates 20 pre-owned hospitals, two managed hospitals, five heart centers, and 19 primary health facilities. Additionally, they have a hospital in the Andaman & Nicobar Islands. Out of their 6800 beds, 6200 beds are operational. Narayana Rudra has a market capitalization of INR 28,000 crore, stock P/E of 38, ROCE of 31%, and ROE of 33%. Over the past five years, it has achieved a compounded sales growth of 14% and a compounded profit growth of 99.3%. From a technical standpoint, the stock is currently in an uptrend and has good support at 1277. However, if it breaks below this level, the next strong support is at 1133. Therefore, it is advisable to consider buying the stock around these support levels.
Doctor Path Labs
Companies like Doctor Path Labs, with a robust track record and a focus on innovation in the healthcare sector, present an enticing opportunity for investors. As the demand for advanced diagnostic services continues to rise, Doctor Path Labs has demonstrated consistent growth, reflecting positively on its shares. The company’s commitment to cutting-edge technologies and its expanding network of diagnostic facilities position it well for sustained success. Investors are keenly observing the upward trajectory of Doctor Path Labs shares, anticipating further growth fueled by both market trends and the company’s strategic initiatives. In an era where the healthcare industry plays a pivotal role in global economies, investing in shares of forward-thinking companies like Doctor Path Labs not only aligns with financial objectives but also supports the advancement of crucial medical services.”
Renewable Energy Sector
Top 2 Sectors for Investing – The renewable energy sector is another significant sector to consider for investment. The Indian government has set a target of achieving 500 gigawatts of renewable energy capacity by 2030. Currently, India’s renewable energy capacity is only 180 gigawatts, which is expected to increase significantly over the next six years. This push from the government to promote renewable energy will benefit companies operating in this sector. The three companies to watch out for in the renewable energy sector are:
1. NTPC ( National Thermal Power Corporation Limited )
2. Tata Power
3. Adani Energy
National Thermal Power Corporation Limited
NTPC, or the National Thermal Power Corporation Limited, stands as a cornerstone in India’s power sector, playing a pivotal role in the country’s energy landscape. Established in 1975, NTPC has evolved into a leading power utility company with a formidable presence in both thermal and renewable energy generation. With a commitment to providing reliable and affordable power, NTPC has consistently demonstrated excellence in project execution, technological innovation, and sustainable practices. The company’s diverse portfolio encompasses coal, gas, hydro, and solar power projects, contributing significantly to India’s growing energy needs. NTPC’s emphasis on environmental responsibility is evident through its initiatives in clean energy, energy efficiency, and afforestation programs. As a key player in India’s energy security, NTPC continues to be a driving force in the nation’s journey towards a sustainable and power-secure future.
Tata Power
Tata Power, a prominent player in the energy sector, stands as a beacon of innovation and sustainability. Established in 1915, the company has grown into a diversified power giant with a global presence. Tata Power’s commitment to generating reliable and clean energy is evident through its extensive portfolio encompassing thermal, hydro, solar, and wind power projects. Notably, the company has been a trailblazer in embracing renewable energy solutions, contributing significantly to India’s transition to a greener future. Tata Power’s focus on technological advancements and community engagement sets it apart in the industry. With a keen eye on environmental stewardship, the company has implemented various initiatives to reduce its carbon footprint and promote energy efficiency. As Tata Power continues to navigate the evolving energy landscape, it remains a key player in fostering sustainable development and powering the aspirations of a growing nation.
Adani Energy
Adani Group, led by Gautam Adani, is a well-known conglomerate with diverse business interests, including energy. Adani Green Energy Limited is a part of the Adani Group and is actively involved in renewable energy projects.
These companies have demonstrated strong sales and profit growth over the past five years. NTPC, with a market capitalization of INR 3,15,000 crore, has a stock P/E of 16, ROCE of 10%, and ROE of 12%. Tata Power, with a market capitalization of INR 62,000 crore, has a stock P/E of 54, ROCE of 20%, and ROE of 17%. Adani Energy, with a market capitalization of INR 89,000 crore, has a stock P/E of 62, ROCE of 18%, and ROE of 15%. It is important to note that the valuation of these stocks is not excessively high, making them attractive investment options. However, it is advisable to wait for a correction before buying these stocks, as they have recently seen significant price appreciation.
Conclusion
In conclusion, Top 2 Sectors for Investing the healthcare and renewable energy sectors offer excellent opportunities for investment and stock market trading in 2024. Apollo Hospital Enterprises, Narayana Rudra Limited, and Doctor Path Labs are leading companies in the healthcare sector, while NTPC, Tata Power, and Adani Energy are prominent players in the renewable energy sector. These sectors are expected to witness significant growth in the coming years, making them attractive investment options. However, it is important to analyse the charts, identify support levels, and consider valuation before making any investment decisions. Remember to always conduct thorough research and consult with a financial advisor before making investment decisions.
Disclaimer: The information is only for information purpose only. It is always recommended to consult with certified financial experts before making any investment decisions. Follow busymoneyfreak.com .