Leading companies cashing in on India’s compelling growth prospects
Ewan Thompson, manager of the Liontrust India fund, highlights three companies he thinks are well-positioned to generate attractive economic returns


India is often considered the most attractive long-term investment opportunity within emerging markets, and arguably among all global markets. With a powerful demographic story, strong institutions, a vibrant democracy, market-friendly policies and an entrepreneurial business culture, India presents immense growth potential. We seek to capture this by investing in “emerging leaders”: companies well-positioned to thrive in a world of rapid change and disruption – disruption that is especially evident in emerging markets.
These emerging leaders are firms with the resources, capabilities and industry positioning to generate outsized economic returns amid rapid transformation within their sectors. They can be either dominant industry leaders adapting to change, or challengers disrupting their industries. They operate in attractive industry structures with strong competitive advantages but crucially have the vision and financial resources to invest for future growth. Unique assets, technological leadership and the difficulty customers face in switching to other suppliers will allow these firms to defend their position while embracing new technologies enables them to secure digital leadership.
Indian companies moving up a gear
ASK Automotive (Mumbai: ASKAUTOLTD) is India’s leading two-wheeler braking system manufacturer, with a 50% market share and long-term partnerships with the top six industry players. The two-wheeler market is rebounding after a downturn, with expected growth of 10%-15% per year for the rest of the decade. ASK has historically outpaced industry growth by increasing market share and expanding its product range.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Given the critical nature of braking systems, barriers to entry in the sector are high, requiring proprietary materials and advanced technology. ASK is also well-positioned for electric vehicles (EVs), which require more aluminium, boosting its growth potential. Strong margins and economies of scale are expected to lift returns on capital from 20%-25% as new capacity ramps up.
Zomato (Mumbai: ZOMATO) is India’s leading food-delivery platform and a major beneficiary of rising digital adoption, urbanisation, and disposable incomes. It has expanded into “quick commerce” (fast delivery of groceries and essentials) through its acquisition of Blinkit, capitalising on a booming market. India’s $600 billion food and grocery sector is dominated by small vendors, creating a massive opportunity for Zomato. The company is rapidly entering smaller cities, with new stores breaking even in just two to three months. While competition is increasing, the potential market is expanding, making growth prospects compelling.
Max Healthcare (Mumbai: MAXHEALTH) is one of India’s top private hospital networks. Despite a population of 1.4 billion, India has fewer than 80,000 private hospital beds, driving demand for quality healthcare. Max is growing through hospital expansions and strategic acquisitions, with plans to increase beds from 6,000 to 8,500 within four years. It dominates high-income regions, such as Delhi and Mumbai, boasting the highest revenue per bed in the industry. With a strong focus on specialised treatments (oncology, cardiology, neurology), Max delivers 30%+ return on capital, with further upside as demand for premium healthcare rises.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Ewan Thompson is a fund manager, having joined Liontrust as part of the acquisition of Neptune Investment Management in October 2019. Prior to joining Neptune in 2006, he worked as an editor for Yale University Press. Ewan graduated from Oxford University in 2003 with a degree in English.
-
Top 10 areas with the biggest inheritance tax bills – is your town on the list?
People in some of the wealthiest parts of London pay the most inheritance tax – but there are a few areas outside the capital where big bills are paid when a loved one dies
-
Inheritance tax reform ‘largely protects family farms’ – what are the alternatives?
Independent analysis of the government’s inheritance tax reforms has found eight out of 10 farming estates will be able to pay their IHT bill without having to sell off parts of the farm
-
8 of the best properties for sale with shooting estates
The best properties for sale with shooting estates – from an estate in a designated Dark Sky area in Ayrshire, Scotland, to a hunting estate in Tuscany with a wild boar, mouflon, deer and hare shoot
-
The most likely outcome of the AI boom is a big fall
Opinion Like the dotcom boom of the late 1990s, AI is not paying off – despite huge investments being made in the hope of creating AI-based wealth
-
What we can learn from Britain’s "Dashing Dozen" stocks
Stocks that consistently outperform the market are clearly doing something right. What can we learn from the UK's top performers and which ones are still buys?
-
The rise of Robin Zeng: China’s billionaire battery king
Robin Zeng, a pioneer in EV batteries, is vying with Li Ka-shing for the title of Hong Kong’s richest person. He is typical of a new kind of tycoon in China
-
Europe’s forgotten equities offer value, growth and strong cash flows
Opinion Jonathon Regis, co-portfolio manager, Developed Markets UCITS Strategy, Lansdowne Partners, highlights forgotten equities he'd put his money in
-
How retail investors can gain exposure to Lloyd’s of London
It’s hard for retail investors to get in on the action at Lloyd’s of London. Here are some of the ways to gain exposure
-
The flaw in Terry Smith’s strategy at Fundsmith
Opinion Fundsmith has invested in some excellent companies, but it has struggled to decide when to sell, says Max King
-
The goal of business is not profit, but virtue
Opinion Serve your customers well, and the profits will follow, according to a new book. It rarely works the other way around, says Stuart Watkins