Domestic brokerage firm Prabhudas Lilladher expects Nifty to rally 24% to 30,089 over the next 12 months in its bull-case scenario. According to reports from ETMarkets.com, the brokerage remains constructive on domestic-oriented sectors including banks, NBFCs, capital goods, defence, power utilities, telecom, jewellery, metals, hospitals and pharma, as well as consumer durables. However, it has retained a cautious stance on IT services, export-driven businesses, cement, chemicals and oil and gas sectors. The brokerage has increased its allocation to banks, capital goods, metals and telecom while turning underweight on consumer and auto stocks, citing the second-order impact of elevated crude prices and inflation.
In its model portfolio, Prabhudas Lilladher has added Polycab India, JSW Steel and Fortis Healthcare, while exiting Apollo Hospitals Enterprise. As reported by ETMarkets.com, the brokerage has increased weights in HDFC Bank, Kotak Mahindra Bank, Larsen & Toubro, Siemens, Titan Company and Bharti Airtel, while trimming exposure to Mahindra & Mahindra, Eicher Motors, Ultratech Cement, Pidilite Industries, Hindustan Unilever and Adani Ports & SEZ. The firm has increased allocation to banks, capital goods, metals and telecom while turning underweight on consumer and auto stocks.
According to ETMarkets.com, Prabhudas Lilladher expects 4% earnings growth in FY26 and a 15% CAGR over FY26–28, taking EPS to ₹1,172, ₹1,356 and ₹1,551 for FY26, FY27 and FY28, respectively. The brokerage noted that demand trends remain stable but flagged risks from rising inflation and potential El Niño impact in coming quarters. In its base case, the brokerage values the index at a 10% discount to the long-term average, implying a multiple of 17.5 times on FY28 EPS of ₹1,551, leading to a revised 12-month target of 27,080, compared with 27,958 earlier. Earnings estimates have seen marginal revisions with EPS changes of 0.2%, -1% and -1.6% for FY26, FY27 and FY28, respectively.
As reported by ETMarkets.com, Nifty is currently trading at a 12% discount to its 15-year average price-to-earnings multiple, with levels approaching those seen during GST 1.0 and the demonetisation phase. The brokerage expects strong growth across capital goods, telecom, EMS, select staples, NBFCs, AMCs, hospitals, power T&D and defence sectors. However, it believes auto growth is nearing its peak, with future trends likely to be influenced by movements in petrol and diesel prices. The firm cautioned that Q4FY26 earnings do not yet fully reflect the likely impact of higher crude prices, global supply chain disruptions and weather-related uncertainties. On the macro front, Prabhudas Lilladher believes that persistently high inflation, the potential impact of El Niño on agricultural output and the ongoing Gulf war could weigh on GDP growth, with inflation expected to rise above 5% over the next three to six months.
