Kotak Institutional Equities in its latest Strategy report announced some changes to its model portfolio. It said the favorable price-value gap in more stocks after the sharp correction in recent weeks will help dispel the ‘gloomy’ mood in the market. The brokerage replaced Bajaj Finserv with Bajaj Finance in the large-cap space as the latter is a direct play, although the former trades at a hefty discount. It also moved Mankind Pharma from the mid-cap to large-cap space, and trimmed positions in HDFC Life, ICICI Bank and Infosys. It increased weight on Reliance Industries, while trimming positions in Axis Bank and State Bank of India (SBI) by 50 basis points each. Here are the 5 mid-cap stocks it added to its model portfolio.
Kotak Institutional Equities said Aster DM Quality Care shares trade at 25x one-year forward EV/EBITDA. It has a target price of Rs 880 apiece for the stock, implying 37% upside potential. The stock has fallen 15% in the past one month on concerns around potential regulatory price caps on drugs and other items sold in hospitals. Kotak believes the stock’s current multiples adequately reflect moderate levels of government intervention on pricing.
Dixon Tech shares trade at 42x forward P/E and offer 33% potential upside, as per Kotak’s target price of Rs 14,900 apiece. The stock has fallen 16% in the past one month amid the overall downturn in the market. The stock used to be in Kotak’s mid-cap portfolio until July 2026 and they had removed it on unfavorable reward-risk balance at higher levels. “We are reinstating it after the recent correction. We continue to like the company’s strong position in the EMS space,” it said.
Emcure Pharmaceuticals trades at 26x one-year forward P/E and offers 26% potential upside to Kotak’s target price of Rs 2,225. The stock has fallen 9% in the past one month on concerns around potential regulatory price caps on medicines. “We view an across-the-board price caps or mark-up caps on the price of drugs by the government as extremely unlikely. We expect Emcure’s EPS to see a strong 17% CAGR over FY2026-29,” the brokerage said.
Endurance Technologies trades at 26x one-year forward P/E and offers 34% potential upside to Kotak’s target price of Rs 3,000. The stock has fallen 15% in the past one month amid the general market correction in mid-cap. stocks. In addition, it is down 23% in the past 12 months even as it continues to be a strong play on growing two-wheeler exports through Bajaj Auto, and is making steady progress in the four-wheeler components segment.