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Kotak Securities has expressed a bullish outlook for Samvat 2080, favoring large-cap stocks due to their reasonable valuations, as reported on Monday. The firm sees Nifty valuations as balanced given moderate earnings growth and past performance. The brokerage has identified eight stock picks for the new Samvat from both large-cap and broader markets, considering recent market correction as an opportunity to add quality stocks at attractive valuations for long-term investment.
The selected stocks include Reliance Industries, Canara Bank, Cipla, Cyient, Dalmia Bharat, GCPL, Macrotech Developers, and PCBL.
Reliance Industries is projected to experience robust growth across key segments due to its focus on 5G modernization and an anticipated tariff hike driven by a growing subscriber base. The company’s significant net debt reduction also contributes to its appeal.
Canara Bank has shown healthy loan growth of 12% with improved asset quality and declining credit costs. These factors have led to an improved RoE and a trading discount compared to other PSU banks.
Cipla delivered a strong Q3 performance with an expected robust 20% EPS CAGR over FY 2023-2026. The potential stake sale by the promoter is being closely watched and an upgrade in financial year 2024-2026 EPS is expected.
Cyient anticipates sustained demand in aerospace, sustainability, and automotive division with a YoY order intake increase of 40%. The firm also plans to continue returning 50% of net profit as dividends.
Dalmia Bharat is predicted to see strong growth driven by organic and inorganic expansions over FY 2023-2026 along with strong price hikes in key markets leading to margin expansion.
GCPL’s turnaround initiatives have started yielding results with high-teen EBITDA growth guidance for the current financial year. However, the firm recognizes the need for more measures to ensure sustainable growth.
Macrotech Developers, with its diversified geographical presence and encouraging land development at Palava, is well positioned to gain further market share.
Finally, PCBL recorded its highest-ever volumes during the September quarter due to increased demand for specialty black and secured two patents for Oxidized grade carbon black and surface-modified carbon black.
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