Kotak’s High-Conviction Stock Picks: Adani Ports, Piramal Pharma, and More Amid Market Relief Rally

The relief rally witnessed in March 2025, as per a Kotak Institutional Equities (KIE) report, was described as an “odd mix of fundamentals and sentiment.” Despite this, Kotak expects India’s stable macroeconomic environment, the likelihood of normal monsoons, and a sluggish global outlook to provide continued support for the market.

The brokerage noted that the reasons behind the rally are speculative, citing potential factors like renewed interest in BFSI stocks, a resurgence in ‘narrative’ stocks, reduced Foreign Portfolio Investor (FPI) selling, and optimism from FPI inflows in recent weeks. Additionally, the report mentions that the “Trump trade” disappointment may have led to a return of FPIs to emerging markets.

For the upcoming fiscal years, Kotak expects Nifty earnings per share (EPS) of ₹1007 in FY25, ₹1145 in FY26, and ₹1314 in FY27, with Nifty trading at multiples of 23.3x FY25E, 20.5x FY26E, and 17.9x FY27E. Looking ahead to FY26, KIE predicts broad-based growth across sectors, particularly with reasonable valuations still seen in banks and NBFCs.

Kotak’s high-conviction stock picks for this period include Adani Ports, Piramal Pharma, and other key large-cap stocks poised for growth.