Morgan Stanley revised its India focus list to include three names it believes can produce above-average growth within their industries: Lenskart, Adani Power and Prestige Estates. The investment bank said the additions reflect company-level advantages such as vertical integration, operational efficiency, strong balance sheets and attractive valuations.
The move was accompanied by the removal of Reliance Industries, Titan and Interglobe Aviation from the firm's list of focused ideas.
Lenskart
Morgan Stanley describes Lenskart as a distinct exposure to evolving lifestyle trends that the bank views as relatively resilient to macroeconomic pressures. The firm highlighted Lenskart's emphasis on full vertical integration in manufacturing, a robust supply chain and its use of advanced technology as central elements of its competitive position.
MS also pointed to operational efficiency in store expansion and customer engagement as factors underpinning what it calls a superior business model with the potential to compete both domestically and internationally. The bank noted that, if execution is effective, Lenskart could scale globally while maintaining high profitability. Morgan Stanley referenced a strong third quarter showing and said it has raised growth projections for the company, supporting expectations of future stock outperformance.
Adani Power
Morgan Stanley said Adani Power is India’s largest independent power producer and the country’s second-largest thermal developer after NTPC. The bank emphasized the company’s comparatively strong balance sheet, noting a fiscal 2025 net debt to EBITDA ratio of 1.5 times.
On the company’s capital plan, Morgan Stanley expects that 60% to 65% of the roughly $27 billion in capital expenditure required to complete 23.7 gigawatts currently under construction will be funded through internal accruals. The bank identified a set of competitive advantages for Adani Power including strategic acquisition locations that allow conversion of merchant capacity into power purchase agreements, a solid track record of plant commissioning, land availability for future expansion, equipment orders placed ahead of peers and the firm’s sound balance sheet.
Prestige Estates
Morgan Stanley expects Prestige Estates to post robust growth momentum versus peers, projecting fiscal 2026 pre-sales to rise 80% year-over-year - the strongest growth among its comparable companies in the bank’s view. The bank called attention to the company’s significant scaling of its annuity portfolio, forecasting rental income to increase nearly fourfold over fiscal 2026 to 2028.
The report also flagged that a major contribution from Prestige’s Bandra Kurla Complex asset is likely in fiscal 2028 to 2029. In addition, Morgan Stanley noted that Prestige recently signed a memorandum of understanding worth 125 billion rupees with the Government of Maharashtra, increasing the company’s exposure to the data center sector.
Implications
The additions reflect Morgan Stanley’s focus on companies with structural advantages and measurable execution pathways. The three names span consumer discretionary, power generation and real estate - sectors that may be differentially affected by consumer trends, infrastructure investment and commercial real estate leasing dynamics.