PL Capital has picked eight stocks across large, mid and smallcap segments for Samvat 2083, with Bharat Electronics, Britannia Industries, ICICI Bank and Shriram Finance among its largecap bets. Its mid- and smallcap picks include Blue Star, CESC, Delhivery and Ingersoll-Rand India.
In its Diwali outlook, the brokerage said Samvat 2082 was among the most volatile years in recent times, with the Nifty testing the 22,300 support level twice in six months. Geopolitical tensions, tariff uncertainty, deficient rainfall and elevated crude oil prices weighed on sentiment. However, resilient domestic demand and India's expanding industrial base offer opportunities for investors.
BEL's order book stood at Rs 68,720 crore, providing execution visibility of 2.3 times its trailing 12-month sales. PL Capital sees further opportunities from QRSAM, the next-generation corvette programme and the AMCA project. Drones, missile electronics, electronic warfare and cybersecurity are expected to drive long-term growth.
The brokerage expects Britannia to benefit from its leadership in biscuits and bakery, strong signature brands and improving growth in adjacent categories. Resolution of the dual-pricing issue, new launches and premiumisation could support volume recovery. PL Capital expects an EPS CAGR of 11.4% over FY26-29.
A strong balance sheet, adequate capitalisation and improving asset quality underpin the brokerage's positive view. With a CET-1 ratio of 16% and controlled loan-to-deposit ratio, the bank is well positioned to sustain credit growth and profitability. PL Capital expects core return on assets of around 2.32% in FY28.