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E commerce stocks are the future top investment opportunities for 2024

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Published Date: 08 Feb 2024Updated Date: 09 Feb 20246 mins readBy MOFSL
E commerce

India has witnessed a significant surge in internet and smartphone usage since the advent of Reliance Jio, making both easily accessible. In 2021, the number of internet connections surged to 830 million. The rapid increase in the number of internet users and smartphone users, combined with a rise in disposable incomes, has played out well, fostering growth in India's e-commerce industry. 

The e-commerce sector in India has also directly influenced MSMEs by opening up avenues for funding, technological resources, and even educational opportunities. This influence has had a positive ripple effect on various other industries. The growth is also driven by technological advancements such as digital payment systems, hyper-local logistics, and digital advertising, which are expected to bolster the sector's expansion.

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As we look ahead to 2024, it's an exciting time for investors to explore the best e-commerce stocks in India. This blog will highlight some top companies to consider for your investment portfolio.

Zomato Ltd

Zomato is a prominent player in the online food service industry, known for the substantial value of food transactions it facilitates. The company offers food delivery, dining-out options, and loyalty programs. 

As of December 31, 2020, Zomato had a global presence spanning 23 countries, with 131,233 active food delivery restaurants, 161,637 active delivery partners, and an impressive average monthly food order volume of 10.7 million customers. 

The company is debt-free and expected to report strong quarterly results.

Info Edge Ltd

Info Edge is India's premier online classified company, boasting a diverse portfolio of brands in various sectors. These include naukri.com (for online recruitment), 99acres.com (for online real estate), jeevansathi.com (for online matrimonial services), and shiksha.com (for online education information services). 

Info Edge actively invests in startups within the online space and is continually expanding its investment portfolio. Like Zomato, Info Edge is also nearly debt-free.

FSN E-Commerce Ventures Ltd (Nykaa)

Nykaa is a digitally native consumer technology platform that delivers a content-driven, lifestyle retail experience. Nykaa offers an extensive range of beauty, personal care, and fashion products, including items from their brand. 

They have achieved a strong profit growth rate of 21.2% CAGR over the past five years.

One 97 Communications Ltd (Paytm)

One 97 Communications Ltd is India's leading digital ecosystem, serving both consumers and merchants. As of March 31, 2021, the company boasts a vast customer base exceeding 333 million and has registered over 21 million merchants. Its services also include payment solutions, financial services, and commerce and cloud services. 

One 97 Communications Ltd is financially stable and is expected to deliver favourable quarterly results. 

Indiamart Intermesh Ltd

Indiamart is a pioneering B2B digital marketplace in India, reshaping the landscape for SMEs( Small and Medium Enterprises). The company is dedicated to facilitating the integration of SMEs into the digital marketplace, offering accessibility, visibility, and engagement. 

IndiaMART is debt-free and has exhibited an impressive profit growth rate of 42.1% CAGR over the past five years.

Just Dial Ltd

Just Dial leads India's local search engine segment, providing platform-agnostic local search-related services across various platforms.

The company maintains a virtually debt-free status and is anticipated to deliver strong quarterly results.

Metal Scrap Trade Corporation Ltd

MSTC Ltd engages in trading activities, e-commerce, and the disposal of ferrous and non-ferrous scrap, surplus stores, minerals, agri, and forest products, among other commodities. 

Owned and controlled by the Government of India, MSTC has demonstrated profit growth, with a CAGR of 25.6% over the past five years. The company also has a strong track record of return on equity (ROE) and consistently pays out healthy dividends to its investors.

In conclusion, India's journey into the digital age is marked by the increased usage of the internet and smartphones. It has paved the way for remarkable developments across various sectors, with the e-commerce industry as a prime beneficiary. The sector has had a profound impact on MSMEs. 

As we enter 2024, investors have a compelling opportunity to explore and invest in the best e-commerce stocks in India.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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