PLI In Auto, Tariff Hikes In Telecom Keeps Goldman Sachs Bullish

Goldman Sachs is positive on automotive, telecom, and thematic investments, according to Sunil Koul, Asia Pacific portfolio strategist at the brokerage. It continues to be optimistic on automotive industry, maintaining an overweight position due to its recent robust performance.

The sector is buoyed by the rapid expansion of electric vehicles, particularly in India. Ola Electric Mobility Ltd., led by Bhavish Aggarwal, has recently secured production-linked incentives certificates for its mass-market scooters.

This certification positions Ola Electric as the first company to have four products certified under the automobile PLI scheme. This move will incentivise the production of its entire portfolio of electric scooters and enhance the company’s competitive edge.

The company is also planning a major investment in battery manufacturing, with a proposed plant in Tamil Nadu set to have a capacity of 20 GWh by mid-2026. If successful, this in-house manufacturing could lower battery costs, potentially reducing overall vehicle prices and improving profitability for the company.

There are also opportunities in the defensive telecom sector, where companies are benefiting from tariff hikes, Koul pointed out. The Indian telecom industry is making strides in next-generation technologies, with a strategic focus on securing a significant share of global 6G patents and contributions to international standards.

Indian telecom players are aiming to capture 10% of all 6G patents and contribute one-sixth of global standards within the next three years. This ambitious goal reflects a broader push to align research with national needs and foster a dynamic standards community.

Goldman Sachs also remains enthusiastic on thematic investments, particularly those aligned with the broader 'Make in India' initiative. Key areas of interest include agriculture, clean energy, energy security, and defence. The brokerage is especially optimistic about investments in agriculture technology.

BharatRohan, an agri-tech startup, exemplifies this trend with its new version of SeedAssure. This service integrates drone technology with data analysis to assist seed companies in evaluating hybrid trials, enhancing crop monitoring, and providing valuable insights into seed performance.

Looking ahead, the brokerage forecasts continued strong interest in thematic investments beyond the headline indices. Ongoing earnings growth will support market momentum, with the Nifty potentially reaching a target of 26,000, Koul said.