SMAR Daily Industry News

Kotak Neo Identifies 7 Stocks with Growth Potential

Despite current macroeconomic challenges, India's market fundamentals remain stable, supported by resilient corporate balance sheets and government initiatives such as infrastructure capital expenditure and Production Linked Incentive (PLI) schemes. In this environment, Kotak Neo has identified seven stocks with growth potential.

Among the stocks highlighted, Jubilant Ingrevia holds a Buy rating with a fair value of Rs 970, representing a 72.5% upside. Its earnings per share (EPS) are projected to grow from Rs 27.2 in FY27 to Rs 29.4 in FY28, with its P/E multiple expected to moderate from 20.5x to 19x. Ujjivan Small Finance Bank also carries a Buy rating, with a fair value of Rs 85, indicating a 46% upside. Its EPS is estimated at Rs 6.3 in FY27 and Rs 6.9 in FY28, while the P/E multiple is projected to decline from 8.4x to 7.7x.

Eternal Limited is another firm with a Buy rating, carrying a fair value of Rs 435, reflecting a 21.5% upside. Its EPS is forecast to rise from Rs 1.3 in FY27 to Rs 3.2 in FY28, with the P/E multiple estimated to drop from 264.6x to 107.5x. APL Apollo Tubes, also rated Buy, has a fair value of Rs 2,594, representing an 18% upside. Its EPS is estimated at Rs 57.7 in FY27 and Rs 70.2 in FY28, with its P/E multiple projected to decline from 37.5x to 30.8x.

Persistent Systems has a Buy rating with a fair value of Rs 6,500, or a 6.4% upside. Its EPS is expected to increase from Rs 136 in FY27 to Rs 177.3 in FY28, while the P/E multiple is projected to fall from 44.5x to 34.1x. Hindustan Aeronautics, which carries an Add rating, has a fair value of Rs 5,305, offering a 5.2% upside. Its EPS is estimated at Rs 147.4 in FY27 and Rs 180.7 in FY28, with the P/E multiple projected to decline from 32.9x to 26.9x. Finally, Titan carries an Add rating with a fair value of Rs 5,050, a 4.4% upside. Its EPS is projected to rise from Rs 71.6 in FY27 to Rs 84 in FY28, with the P/E multiple estimated to decline from 62x to 52.8x.

For investors, these projections highlight how specific firms are positioned to leverage broader national economic policies. Monitoring these EPS growth trends and P/E multiple contractions may provide insight into how brokerage firms evaluate long-term value in the current Indian market landscape.

Why it matters

Investors should track these specific equity valuations and EPS growth projections to gauge how brokerage firms are assessing corporate resilience amid India's current infrastructure and policy-driven economic environment.

FAQ

Which stock has the highest projected upside among those listed?
Jubilant Ingrevia has the highest projected upside at 72.5%.

What is the rating and upside for Ujjivan Small Finance Bank?
Ujjivan Small Finance Bank has a Buy rating with a fair value of Rs 85, representing a 46% upside.

Are the views in the report those of the journalist?
No, the views and recommendations are those of the respective SEBI-registered Research Analyst or brokerage and should not be construed as the views of the journalist or The Economic Times Digital.

Source: Economic Times Markets. See the original source for full details.