As investors look for fresh opportunities in Samvat 2083, Kotak Neo is betting on companies positioned to benefit from India’s infrastructure push, rising consumption, technology spending and improving business profitability. Its Diwali picks cover seven stocks across sectors, with the brokerage highlighting capacity expansion, order-book visibility, operating leverage and market-share gains as key drivers.
The list includes four Buy-rated stocks, two Add-rated stocks and a fair value estimate for Eternal. Here is a look at the brokerage’s investment rationale and its 12-month price targets.
India’s largest structural steel tube manufacturer is expected to benefit from rising investments in infrastructure, construction, energy and urban development. APL Apollo’s distribution network of over 800 distributors across 300 cities and a portfolio of more than 5,000 products give it a strong market presence. Kotak Neo sees capacity expansion from 5 million tonnes to 8 million tonnes by FY28, along with a higher share of value-added products, supporting growth. Revenue and profit are expected to grow at around 16 percent and 19 percent CAGR, respectively, over FY26–29.
Kotak Neo sees quick commerce as the key growth engine for Eternal, which operates Zomato and Blinkit. In Q2FY27, net order value growth stood at 21 percent for Zomato and 79 percent for Blinkit, while adjusted EBITDA margins improved sequentially. Blinkit is targeting more than 3,500 dark stores by March 2027. The brokerage expects revenue to grow at a 63 percent CAGR over FY26–29, with EBITDA margins expanding from 2.2 percent in FY26 to 4.6 percent by FY29 as scale and operating leverage improve.
HAL’s integrated capabilities across aircraft production, repairs, upgrades, engines and avionics provide long-term business visibility. Its order book stood at Rs 2.55 lakh crore in FY26, equivalent to around seven to eight years of revenue visibility, while the near-term opportunity pipeline is estimated at Rs 90,000 crore. Tejas Mk2, light utility helicopters, the Indian Multi-Role Helicopter programme and the Su-30MKI upgrade are among the potential growth drivers. Kotak Neo expects revenue to grow at a 16 percent CAGR over the next five years.