Morgan Stanley includes three stocks in the India Focus List

Investing.com — Morgan Stanley has added three Indian stocks to its India “Focus List,” optimistic about investment opportunities in niche consumer goods, power generation, and real estate sectors.

The selected companies possess competitive advantages across various aspects, including vertical integration, operational efficiency, strong balance sheets, and attractive valuations. These companies are expected to achieve above-average growth in their respective industries.

Morgan Stanley stated that, along with the addition of these three stocks, it is removing Reliance Industries, Titan, and InterGlobe Aviation from the Focus List.

Lenskart

Morgan Stanley considers Lenskart a unique investment opportunity to capitalize on lifestyle shifts, largely unaffected by macroeconomic headwinds. The company strategically focuses on comprehensive vertical integration in manufacturing, a robust supply chain, and advanced technology, combined with store expansion and operational efficiency in customer engagement. This makes it an excellent business model capable of competing successfully both locally and globally. Morgan Stanley believes that, if executed properly, Lenskart can scale globally and maintain high profitability. After a strong Q3 performance, Morgan Stanley has raised its growth expectations, supporting future stock performance.

Adani Power

Adani Power is India’s largest independent power producer and the second-largest thermal power developer after NTPC. Morgan Stanley noted that the company has a strong balance sheet, with a net debt-to-EBITDA ratio of 1.5x in fiscal year 2025. The bank expects that 60% to 65% of the $27 billion capital expenditure needed for its 23.7 GW under-construction projects will be financed through internal cash flow. Key competitive advantages include strategic location of acquisition projects facilitating power purchase agreements, a strong track record of commissioning plants, land reserves for expansion, leading equipment orders over competitors, and a solid balance sheet.

Prestige Estates

Morgan Stanley expects the company to demonstrate strong growth momentum, with projected pre-sales increasing by 80% year-over-year in fiscal year 2026, the fastest among peers. The company is significantly expanding its annuity asset portfolio, with rental income expected to nearly quadruple between fiscal years 2026 and 2028. Major contributions from the Bandra Kurla Complex assets may be realized in fiscal years 2028 to 2029. Recently, Prestige signed a memorandum of understanding with the Maharashtra government for investments worth ₹125 billion, marking increased investment in data centers.

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