Kotak Neo has picked seven stocks across defence, technology, consumer, chemicals, building materials and banking in its Diwali investment report. The brokerage says the correction in Indian equities after a difficult Samvat 2082 has brought valuations to more reasonable levels.
Kotak Neo expects Nifty 50 earnings to grow around 18% in FY27 and 13% in FY28. It sees this as a constructive backdrop for fundamentally strong companies.
Jubilant Ingrevia is the brokerage’s top pick in chemicals, with a BUY rating and a 12-month target of ₹970 against a current price of ₹558. Kotak Neo sees substantial recovery potential after the stock’s fall. Management has retained FY27 EBITDA guidance of ₹750–800 crore, and the brokerage notes that an existing order book could add ₹500 crore of specialty chemicals revenue each year from FY27 to FY29.
Ujjivan Small Finance Bank has a BUY rating and a target of ₹85, compared with ₹53. Kotak Neo points to a 20% return on equity and 2.4% return on assets in Q2FY27, along with flat slippages and credit costs below 1%.
Eternal has a BUY rating and a target of ₹435, against ₹344. The brokerage says the parent of Zomato and Blinkit is becoming a diversified consumer technology platform, with quick commerce as a major driver. Kotak Neo expects a 63% revenue CAGR over FY26–FY29 and EBITDA margins rising from 2.2% to 4.6%.
APL Apollo Tubes has a BUY rating and a target of ₹2,594, against ₹2,165. Kotak Neo believes capacity expansion from 5 million tonnes to 8 million tonnes by FY28 should support volume growth and market share gains.
Persistent Systems has a BUY rating and a target of ₹6,500, against ₹6,048. The brokerage says the company is well placed to benefit from AI-led technology spending, and that the proposed Nagarro acquisition could widen its enterprise client base.
Titan Company has an ACCUMULATE rating and a target of ₹5,050, against ₹4,436. Kotak Neo argues that stable gold prices could help the jewellery business gain share and improve margins. It notes that Titan’s jewellery market share is still in single digits, leaving considerable room to grow.
Hindustan Aeronautics has an ACCUMULATE rating and a target of ₹5,305, against ₹4,854. Kotak Neo highlights its order book of ₹2.55 lakh crore, which it says gives an estimated seven to eight years of revenue visibility. The brokerage also points to a near-term opportunity pipeline of ₹90,000 crore and programmes such as Tejas Mk2 and the Su-30MKI upgrade.
All targets are 12-month targets set by Kotak Neo.
The call, as given by the analyst
| Analyst | Firm | SEBI registration | Instrument | View | Target | Stop-loss | Analyst interest disclosed |
|---|---|---|---|---|---|---|---|
| Kotak Neo | INH000000586 | Jubilant Ingrevia | BUY | 970 | – | Not stated in source | |
| Kotak Neo | INH000000586 | Ujjivan Small Finance Bank | BUY | 85 | – | Not stated in source | |
| Kotak Neo | INH000000586 | Eternal | BUY | 435 | – | Not stated in source | |
| Kotak Neo | INH000000586 | APL Apollo Tubes | BUY | 2594 | – | Not stated in source | |
| Kotak Neo | INH000000586 | Persistent Systems | BUY | 6500 | – | Not stated in source | |
| Kotak Neo | INH000000586 | Titan Company | ACCUMULATE | 5050 | – | Not stated in source | |
| Kotak Neo | INH000000586 | Hindustan Aeronautics | ACCUMULATE | 5305 | – | Not stated in source |
Disclosure: This article reports the views of the named analyst or research firm. They are theirs, not MyFinanceBandhu recommendations. MyFinanceBandhu is not a SEBI-registered investment adviser or research analyst and does not give investment advice. The author and MyFinanceBandhu hold no position in the instrument discussed. Past performance does not predict future results. Check the analyst registration on SEBI’s website before acting. Source: original report.
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