Stocks to buy: As Samvat 2083 is likely to begin soon, investors looking to position their portfolios for the next market cycle may find opportunities in companies with strong earnings visibility, expanding businesses and improving growth prospects.
After a challenging Samvat 2082, marked by foreign investor outflows, geopolitical uncertainty and elevated crude oil prices, Kotak Neo believes the correction in Indian equities has brought valuations to more reasonable levels.
The brokerage expects Nifty 50 earnings to grow around 18% in FY27 and 13% in FY28, creating a constructive backdrop for fundamentally strong stocks. Its latest Diwali investment report identifies seven stocks across sectors, including defence, technology, consumer businesses, chemicals, building materials and banking. Here are the seven picks, their ratings, 12-month price targets and investment rationale.
Jubilant Ingrevia is Kotak Neo's top pick in the chemicals sector, with a target price of ₹970 against the prevailing price of ₹558. The brokerage sees substantial recovery potential following the stock's correction amid renewed Middle East hostilities, the acquisition of Zettaone and concerns over the outlook for its FMC contract.
Management has retained its FY27 EBITDA guidance of ₹750–800 crore and expects to approach the upper end after a strong first half. The existing order book is expected to generate incremental specialty chemicals revenue of ₹500 crore annually between FY27 and FY29. A growing new-product pipeline and continued strength in nutrition are additional positives.