Khemka expects the broader market to remain lacklustre until early 2026, making selective, company-specific triggers more important. The upcoming Union Budget could revive capital expenditure after two weak years, which will support infrastructure names alongside pockets of momentum in defence and railways.
Turning to Castrol India, Khemka said the recent open offer is a mandatory first step following the parent’s intent to pare its stake. He believes a potential change in management could bring sharper strategic focus, particularly towards EV-linked and new-age businesses.
Given Castrol India’s cash-rich balance sheet and strong dividend profile, he sees further upside if a delisting were to materialise, though for now the focus remains on the open offer. “We remain positive,” he said, reiterating a target price of ₹260, which implies roughly 40% upside from current levels.
On VIP Industries, Khemka said a turnaround is possible under new ownership following the stake sale to Multiples, but execution will be key. He flagged the need to improve supply-chain efficiency, sharpen focus on secondary sales, divest low-profit brands and shut loss-making exclusive brand outlets. While competition from newer direct-to-consumer brands has hurt market share, Khemka said VIP’s strong brand recall and a sustained travel boom provide a supportive long-term backdrop if the new management delivers on these priorities.
Also Read: VIP Industries have underperformed Safari in the last five years; Here’s what can turn it around
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