According to Sunny Agrawal from SBI Cap Securities, CSB Bank has emerged as a potential rerating candidate following strong provisional December quarter numbers. As reported by ETMarkets.com, the bank is currently trading at 1.6-1.7 times one-year forward price-to-book, compared to larger peers trading at 2-2.5 times price-to-book. Agrawal described it as one of the fastest-growing banks, driven largely by its gold finance book, with robust September quarter performance. The analyst noted that the stock is reacting positively to the strong provisional update and sees scope for further upside given the valuation discount to peers. However, he advised that a buy-on-dips approach may be more suitable from a medium to long-term perspective. Recent technical analysis from TradingView indicates a trendline breakout in CSBBANK, presenting a Buy Today Sell Tomorrow (BTST) opportunity with traders targeting 4-7% profit on breakout trades.
The realty index outperformed the broader market with approximately 2% gains on Tuesday, led by stocks such as Sobha, Lodha Group, and Prestige Group. According to Agrawal's analysis shared on ET Now, the December quarter should be robust in terms of pre-sales across most real estate companies, particularly in micro-markets like Mumbai where registration data has remained strong. He highlighted that companies focused on Mumbai real estate market, including Lodha and Sunteck Realty, are likely to perform well. Agrawal also noted that real estate has been one of the worst-performing sectors in calendar year 2025, but easing interest rates could help revive demand. Among recommended stocks, he mentioned Lodha, DLF, Prestige, and Sobha for their ability to penetrate other markets, while flagging Raymond Realty as an attractive recent listing.
The FMCG space gained attention following a strong quarterly update from Marico, with positive sentiment spilling over to the broader FMCG pack. As reported by ETMarkets.com, Agrawal explained that while the September quarter saw supply chain disruptions due to GST rationalisation, the December quarter should deliver healthier numbers aided by the festive season and normalisation of supply dynamics. He highlighted favourable cost conditions with a benign input material environment for most FMCG companies. Among stocks likely to report strong December quarter performance, Agrawal named Britannia, Tata Consumer, Zydus Wellness, and winter-focused plays such as Emami. As a contrarian play, he recommended Colgate, stating that valuations have turned favourable and risk-reward seems attractive at current levels.
According to the latest analysis from ETMarkets.com, Indian equities saw renewed interest in interest-rate sensitive and consumption-linked sectors, with real estate and FMCG stocks drawing particular attention. Easing rates, festive demand, and improving fundamentals are prompting investors to selectively revisit sectors that have lagged over the past year. Market participants are increasingly hopeful that the December quarter could mark a turnaround for several sectors after a difficult 2025. Agrawal noted that valuations have become more comfortable after recent corrections, making selective stocks attractive, even as broader market valuations remain a key consideration for investors.
