The brokerage additionally backed structural performs comparable to Adani Ports & SEZ and monetary heavyweight ICICI Financial institution, arguing that home demand, buoyed by tax cuts, decrease inflation and simpler credit score, will drive the following leg of progress.
The brokerage’s newest India Technique report values the Nifty at 19.1 instances one-year ahead earnings, according to its 15-year common. With March 2027 earnings per share estimated at Rs 1,445, PL pegs its base-case goal at 27,609, a modest enhance from its prior 26,889 forecast.
Inventory picks and sectoral bets
PL’s large-cap favorites embrace Adani Ports, Apollo Hospitals, Bharti Airtel, Britannia, Hindustan Aeronautics, ICICI Financial institution, ITC, Larsen & Toubro, Lupin, and Titan. Within the mid-cap and small-cap house, it prefers Aster DM Healthcare, Crompton Greaves Client Electricals, DOMS Industries, Eris Lifesciences, Ingersoll-Rand India, KEI Industries, Samhi Motels, and Voltamp Transformers.
The brokerage has added Adani Ports to its mannequin portfolio as a “structural play on Exim commerce and India’s progress,” whereas additionally naming Britannia, L&T, DOMS Industries, Voltamp Transformers, and Eris Lifesciences amongst its high-conviction picks.
Earnings outlook
PL tasks Nifty EPS at Rs 1,254 for FY26 and Rs 1,445 for FY27, implying a 13.2% compound annual progress price over FY25–27. Nevertheless, it has trimmed earnings estimates by 1.4% for FY26 and 0.4% for FY27, noting pressures from U.S. tariffs and fragile geopolitics.Sectorally, the brokerage stays obese on banks, healthcare, client, telecom, autos, and capital items, whereas underweighting IT providers and commodities. Themes comparable to protection, infrastructure, electronics manufacturing providers, hospitals, and energy transmission stay intact however supply “restricted re-rating potential,” the brokerage stated.
Macro tailwinds
India’s near-term progress, based on PL, will hinge on home demand revival. The brokerage sees client spending benefiting from Rs 1 trillion in tax cuts, decrease inflation, and price cuts totaling 100 foundation factors already delivered by the Reserve Financial institution of India. The upcoming GST 2.0 reforms, which suggest shifting most items from 12% and 28% slabs to five% and 18%, are anticipated to additional enhance consumption throughout autos, durables, processed meals, and prescription drugs.“Situations appear ultimate for pickup in home demand as the present festive season is predicted to achieve from advantages of tax cuts, decrease inflation and regular monsoons,” stated Amnish Aggarwal, head of analysis at Prabhudas Lilladher.
Nonetheless, the brokerage flagged dangers from fragile geopolitics and punitive U.S. tariffs, which it stated might shave 30–50 foundation factors off GDP progress in FY26. It warned that labor-intensive sectors comparable to textiles, gems and jewelry, and marine exports are more likely to face job losses and margin pressures, whilst India seeks to diversify export markets.
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(Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t characterize the views of the Financial Occasions)
