Kotak Neo Highlights Seven Indian Stocks for Diwali Investment
Kotak Neo’s latest Diwali investment report outlines seven Indian equities that the brokerage believes offer strong earnings visibility and growth potential as Samvat 2083 approaches. The firm expects the Nifty 50 earnings to rise about 18% in FY27 and 13% in FY28, creating a supportive backdrop for the selected stocks, which span defence, technology, consumer, chemicals, building materials and banking.
In the chemicals space, Jubilant Ingrevia is rated top-pick with a target of ₹970 versus the current ₹558. Kotak Neo cites a recovering order book, an acquisition of Zettaone and a projected incremental specialty chemicals revenue of ₹500 crore per year from FY27 to FY29, alongside a FY27 EBITDA guidance of ₹750-800 crore.
Ujjivan Small Finance Bank receives a BUY rating and a target price of ₹85, up from its market price of ₹53. The brokerage points to a 20% return on equity, 2.4% return on assets in Q2FY27, a 32% year-on-year loan-book expansion and a 30% rise in deposits, while credit costs fell below 1% and slippages held steady at 1.7%. Management kept its FY27 RoA guidance at 1.8-2%.
Eternal, the parent of Zomato and Blinkit, is highlighted for its transition to a diversified consumer-technology platform. Kotak Neo sets a target of ₹435 against a current ₹344, noting year-on-year net order value growth of 21% for Zomato and 79% for Blinkit in Q2FY27, and an expected revenue CAGR of 63% from FY26 to FY29. The firm projects EBITDA margins to rise from 2.2% in FY26 to 4.6% by FY29.
APL Apollo Tubes, India’s largest structural steel-tube maker, is given a BUY rating with a target of ₹2,594 versus ₹2,165. The broker expects capacity to expand from 5 million to 8 million tonnes by FY28, supporting projected revenue and profit-after-tax CAGRs of roughly 16% and 19% respectively over FY26-FY29.
Persistent Systems also receives a BUY rating and a target of ₹6,500, slightly above its current ₹6,048. Kotak Neo sees the company benefiting from AI-driven technology spending and the pending Nagarro acquisition, which could broaden its enterprise client base. The firm forecasts organic revenue growth of 19.9% YoY in constant currency for FY27 and a 31% CAGR in EPS from FY27 to FY29.
Titan Company is assigned an ADD rating with a target of ₹5,050 against a market price of ₹4,436. The brokerage expects a stable gold price environment to aid jewellery sales, targeting a 19-20% CAGR in consolidated jewellery revenue and a 250-basis-point market-share gain to 11%. Consolidated jewellery sales and EBIT are projected to grow at 17% and 18% CAGRs respectively through FY29.
Hindustan Aeronautics Limited (HAL) receives an ADD rating and a target of ₹5,305 versus ₹4,854. Kotak Neo highlights HAL’s integrated aircraft capabilities and an order book of ₹2.55 lakh crore at FY26 end, offering seven to eight years of revenue visibility. A near-term pipeline of ₹90,000 crore and programmes such as Tejas Mk2, Light Utility Helicopter and Indian Multi-Role Helicopter underpin an expected 16% revenue CAGR over the next five years.
Why it matters
These picks identify Indian companies positioned for earnings growth as the market cycle shifts, offering investors concrete targets for portfolio allocation.
FAQ
What earnings growth does Kotak Neo expect for the Nifty 50?
Around 18% in FY27 and 13% in FY28.
Which stock has the highest price-target upside in the report?
Ujjivan Small Finance Bank has a target price of ₹85 versus a current price of ₹53, indicating a 60.4% upside.
What is the projected revenue CAGR for Eternal through FY29?
Eternal is expected to deliver a 63% revenue CAGR over FY26–FY29.
How much capacity expansion does APL Apollo Tubes plan by FY28?
The company plans to increase capacity from 5 million tonnes to 8 million tonnes.
Source: Mint Markets. See the original source for full details.
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