He expects future growth to settle around 15-20%, lower than earlier expectations of 35-40%, given the decline over the last two to three quarters in top-line growth momentum.
Based on this, he said Trent may remain a trading stock but not a long-term fundamental buy.Also Read | Tough year ahead for Indian equities, PSU banks offer hope: Systematix Group
In the IT sector, Kant said investors should look at Indian IT product companies rather than large IT service firms. Chola Securities currently prefers Aurionpro Solutions based on recent earnings and order wins. The company reported sequential revenue growth of about 3.7%, earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth of 4.7%, and EBIT growth of about 6%, with margin improvement.
Aurionpro has an order book of about ₹400–450 crore across banking and mobility segments. He expects execution of recent deal wins to support performance in the coming quarters.Also Read | Bernstein retains 28,100 Nifty target for calendar year
On defence stocks, Kant maintained a positive view on Hindustan Aeronautics (HAL) despite recent concerns about order competition. He said the company has strong order visibility with a book-to-bill ratio of eight times and potential growth of 15–20% over the next few years.
He said execution delays earlier were linked to supply issues from engine suppliers rather than company-specific issues. He also noted that increased private sector participation in defence manufacturing could create competition but may not impact long-term business prospects.
He said investors were advised to “stay put” and added that clients were told to add the stock during recent price declines.
For the full interview, watch the accompanying video
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