Baron India Fund

Backed by the Tata Group, Trent Limited (TRENT.IN) is a leading direct-to-consumer retailer in India that sells private label apparel through its retail chains. It reported $1 billion in revenue for fiscal year 2024 and operates over 750 Westside and Zudio stores across 150 cities in India.
Trent is a differentiated apparel company focused on product quality, a pricing strategy without promotion, and supply chain management, which translates into quality like-for-like (LFL) growth. The company is expanding its Zudio value fashion retail chain, and we estimate that Zudio store count could double to more than 1,000 in the next five years. We believe double-digit LFL growth and store expansion could drive 25%-plus topline growth. Operating leverage and franchise growth should further aid margin expansion and drive 30%-plus EBITDA CAGR in the years ahead.

Indus Towers Limited (INDUSTOW.IN) is a leading telecommunications tower operator in India. The tower industry is structured as a duopoly, with Indus and a key competitor accounting for about 60% of the market share.
Indus is a key beneficiary of industry consolidation and the rollout of 5G services by telecommunications providers. Given recent improvements in financial viability, Vodafone Idea (VI), a key customer of Indus, has resumed monthly payments and should be a re-rating catalyst for Indus’ stock. Additionally, Indus should benefit from VI’s planned 4G expansion and 5G rollout, which will drive tower additions, tenancy ratio improvement, operating leverage, and free cash generation. We expect Indus to deliver approximately 10% earnings growth over the next three to five years.

Bharti Airtel Limited (BHARTI.IN) is a leading telecommunications company, with operations in 18 countries across Asia and Africa. The company's offerings include wireless, mobile commerce, and fixed line. 
Bharti is a top three player in the Indian telecommunications industry. With more than 30% market share, it is well positioned to benefit from rising smartphone penetration and 4G services in India. The company should continue to gain market share from Vodafone India, which is on the brink of bankruptcy and will likely need to raise mobile tariffs by more than 50% to remain a viable entity. We expect earnings to generate mid-teens growth over the next three to five years, with further upside from its broadband and enterprise businesses.

Reliance Industries Limited (RELIANCE.IN) is India's leading conglomerate, with business interests that include oil refining, petrochemicals, media, telecommunications, and retail.
We believe Reliance is positioned to leverage its telecommunications network to transform into a digital services company, offering products such as video streaming, broadband, and e-commerce services. The company is also laying the groundwork to create an online marketplace that will connect over 12 million mom & pop retailers to over 400 million mobile and internet subscribers. We believe earnings will sustain high double-digit growth over the next three to five years.

Zomato Limited (ZOMATO.IN) is India's leading food delivery platform, with roughly 50% market share. The company also has a classified advertising business. 
Zomato is well positioned to benefit from structural growth in online food delivery in India. The industry has become a duopoly between Swiggy and Zomato, which bodes well for future profitability and scale. In our view, the company should generate revenue growth of more than 40% over the next three to five years.

Leading Indian electronics manufacturing services player Kaynes Technology India Limited (KAYNES.IN) specializes in low-volume, high-value sub-spaces. It offers OEM and ODM services to auto, industrial, medical, railway, aerospace and defense, IoT, information technology, and consumer end markets.
We believe Kaynes is well positioned to benefit significantly from the Indian government's push for import substitution. We are also excited about Kaynes’ recent entry into outsourced semiconductor assembly and testing (OSAT) and smart electricity meter. We expect the company to achieve 40%-plus revenue and EBITDA CAGR in the next three to five years.

GMR Power and Urban Infra Limited

Godrej Consumer Products Limited (GCPL.IN) is a leading fast-moving consumer goods company in India with brands across three categories: personal care, home care, and hair care. International operations account for roughly 45% of consolidated revenue.
Godrej is well positioned to benefit from growing demand for consumer products and services in India, in our view. The company has a strong brand recall and should gain market share from smaller/unorganized players. We think Godrej can sustain mid-teens earnings growth over the next three to five years. 

Jio Financial Services Limited (JIOFIN.IN) is a non-banking financial company in India. It offers various financial products and services including loans, insurance, and payment solutions to individuals and small businesses.
We believe Jio Financial Services is well positioned to benefit from the growing demand for consumer and small business financial services in India. The company’s key competitive advantage is its parentage under Reliance Industries, which has the largest retail footprint in India. We view Jio Financial Services as a formidable market challenger in the non-banking financial company industry, and we think it should be able to drive share gain over the next three to five years by leveraging Reliance's broad customer network.

Power Grid Corporation of India Limited

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