According to The Economic Times, Rahul Shah from MOFSL sees Reliance Industries approaching a turning point after nearly three years of sideways movement. Speaking to ET Now, Shah highlighted that the company's annual general meeting (AGM) offered several important takeaways that strengthened the long-term investment case. "Reliance has been stuck in a range for the last two to three years, and investors have effectively seen zero returns. But the AGM highlighted three to four major positives. The company announced its plan to double EBITDA over the next five years, which is important. Secondly, it spoke about the much-awaited Jio Platforms IPO, giving investors clarity. Jio is expected to contribute nearly 80% of EBITDA, making it the most important business." Shah expects 20-25% returns over the next year for investors, stating that "the wait for Reliance investors is likely to be worth it."
As reported by The Economic Times, Rahul Shah from MOFSL believes the banking sector is entering a new phase where smaller lenders continue to benefit from improving fundamentals and attractive valuations. "If you look at the last year, especially the last six months, large banks have performed very well, whether PSU or private. But smaller banks like RBL have rallied strongly after preferential allotments. Federal Bank also performed well after Blackstone's investment. Smaller banks with these themes have done well. Going forward, while larger banks may benefit the most from decade-high credit growth, small and mid-sized banks should also continue to perform well, and valuations remain reasonable." Shah highlighted RBL and AU Bank as preferred names, stating that both should perform well over the next year.
According to The Economic Times, Shah identified banking, capital goods, manufacturing, defence, and aerospace as key drivers for the next market rally. His preferred themes include electronic manufacturing services (EMS), defence, aerospace, capital expenditure and contract drug manufacturing (CDMO). His top stock picks include CG Power, Angel One, Siemens Energy, Amber Enterprises, Eicher Motors, RBL Bank, and AU Bank. He emphasized that stronger earnings growth is helping midcap and smallcap stocks outperform their large-cap peers, with small and midcap indices expected to outperform largecaps. He also highlighted that midcaps and smallcaps continue to benefit from stronger earnings growth and that markets are rewarding these segments because of their strong earnings trajectory.
Multiple brokerage firms continue to identify selective opportunities across sectors, with fresh coverage initiations and reaffirmed bullish calls highlighting stocks that could deliver meaningful upside. JM Financial has reiterated its Buy rating on Power Grid Corporation of India with a target price of ₹342, implying a potential upside of around 19% from the current market price of ₹286. Similarly, JM Financial maintains a Buy recommendation on NTPC with a target price of ₹450, expecting a potential upside of nearly 26% from the current market price of ₹355. Elara Securities has initiated coverage on Hyundai Motor India with a Buy rating and target price of ₹2,390, seeing a potential upside of around 21% from the current market price of ₹1,975.
As reported by The Economic Times, the Nifty has crossed the 24,000 mark, with analysts seeing potential for a move towards 24,600. Support is seen around 23,800, making dips attractive for buyers. However, the IT sector continues to face selling pressure, with a neutral to bearish outlook. Shah remains cautious on the IT sector, stating that "after Accenture's numbers, we believe earnings for large-cap IT companies will remain soft this quarter as well. Over the last two years, IT stocks have corrected sharply, and valuations have become attractive. Large companies are growing at around 3%, offering dividend yields of nearly 4% and trading at about 11-12 times earnings. That limits further downside, but it does not necessarily make them attractive investment opportunities." Despite attractive valuations, the IT sector recovery is expected to be gradual rather than a sharp rebound.
