1 / 8Brokerage firm Kotak Securities expects some stability in earnings after large downgrades over the past 12-15 months and strong growth in earnings in FY27 (18% for the Nifty 50 index). The brokerage wrote in its note that the market may offer modest returns over the next 12-15 months with growth in earnings being partly offset by lower multiples. It has shortlisted seven stocks that can do well until the next Diwali. Here is a look at those seven names:
2 / 8Adani Ports | Kotak Securities recommends buying the stock at a price of ₹1,419 for a price target of ₹1,900 until the next Diwali. The brokerage has taken note of the strong pace of the value addition by ADSEZ. It anticipates strong volume growth in two-thirds of ADSEZ’s port portfolio. It said that East Coast ports are poised for strong growth and capex boost. Dominant share of volume comes from containers and strong growth trajectory. It estimates a Rs 11,400 crore topline and Rs 2,800 crore EBITDA in FY29.
3 / 8Eternal | Kotak Securities recommends buying the stock at a price of ₹328 for a price target of ₹375 until the next Diwali. In Food, Gross merchandise value share stands at 57% as against Swiggy’s 43% in FY25. The company has a wide geographical presence in 750 cities compared to 660 cities for Swiggy. The brokerage believes that Blinkit’s take rate has room for expansion. Higher proportion of older stores should drive operating leverage. It expects Blinkit to achieve EBITDA breakeven in H2FY26.
4 / 8ICICI Bank | Kotak Securities recommends buying the stock at a price of ₹1,365 for a price target of ₹1,700 until the next Diwali. The brokerage said that the bank’s return on Equity at 18% is among the best in the industry. Its asset quality metrics showed no stress visible in the unsecured loan portfolio. Loan growth is broad-based and granular. Capital market-related subsidiaries had another strong year.
5 / 8Mahindra and Mahindra | Kotak Securities recommends buying the stock at a price of ₹3,462 for a price target of ₹4,000 until the next Diwali. The brokerage said that M&M executes well by maintaining a leadership position in all three segments. It expects the tractor segment’s volume growth momentum to continue. The company expects SUV segment volumes to grow by mid-high teens year-on-year in FY26E. It expects LCV segment demand momentum to pick up. Kotak Securities also expects profitability to improve in LCV and tractor segments.
6 / 8Reliance Industries | Kotak Securities recommends buying the stock at a price of ₹1,363 for a price target of ₹1,555 until the next Diwali. The brokerage expects RIL’s telecom arm to launch its IPO by the first half of calendar year 2026. Kotak estimates the company’s EBITDA to double between FY22 and FY27E, reaching around ₹2.11 crore by the end of the period. The organised retail segment is expected to deliver over 20% revenue CAGR over the next three years, while the FMCG business aims to achieve ₹1 lakh crore in revenue over the next five years (against ₹11,500 crore projected in FY25). In the long run, Reliance aspires to become India’s largest FMCG company with a global footprint. Further, with its focus on transforming into a deep-tech enterprise, RIL has announced a new joint venture with Meta and expanded its partnership with Google Cloud.
7 / 8Cummins | Kotak Securities recommends buying the stock at a price of ₹3,933 for a price target of ₹4,400 until the next Diwali. The brokerage said the company has penetrated new markets and raised its new offerings in FY25. Cummins has meaningful scope for growing its distribution business over time. Majority of end-user segments in powergen are on a strong growth trajectory, the brokerage wrote in its note.
8 / 8Acutaas Chemical | Kotak Securities recommends buying the stock at a price of ₹1,387 for a price target of ₹1,780 until the next Diwali. The brokerage said that Acutaas Chemical has fast-growing producer of pharma intermediates and specialty chemicals. Sharp margin expansion owing to process improvements and favourable mix. The company has reiterated guidance for 25% revenue growth with improved margins. Three CDMO project in discussion, to contribute from Q4FY26. The brokerage said the company is well-placed to deliver strong expansion in margins for second successive year. Its growth outlook strong, good visibility in pharma, electrolyte, semiconductor.
