Emkay's Recommended Stocks: Zomato, Paytm, Tata Motors, and More
13th Jan 2025
Emkay's Market Outlook and Nifty Target
Emkay Global believes the domestic stock market could remain weak until March, but a stability is likely from April onwards, with earnings outlook improving and the FPI selling abating by then. The brokerage has set a 2025 Nifty target of 25,000, expecting small and midcap stocks to outperform the broader market.
Emkay's Sector Picks and Rationale
Emkay has gone contrarian on its sector picks, downgrading technology to 'neutral' on valuations and 'upgrading' consumer discretionary to 'overweight' on the expected turnaround. It has also added staples to its basket of structurally underperforming sectors, while maintaining an 'overweight' stance on healthcare and real estate.
Emkay's Large-Cap, Mid-Cap, and Small-Cap Stock Recommendations
In the large-cap space, Emkay's top picks are Lupin Ltd, Zomato Ltd, and Tata Motors Ltd. For mid-caps, the brokerage recommends IndusInd Bank Ltd, Escorts Ltd, and One 97 Communications Ltd (Paytm). In the small-cap segment, Emkay's choices are StoveKraft, Metropolis Healthcare, and Quess Corp, citing their strong growth potential and diversification opportunities.
Emkay believes the broader markets may stay volatile in the March quarter, as uncertainties around earnings and geopolitics persist. However, the brokerage sees the potential for a turnaround in the second half of 2025, with consumption expected to bounce back and earnings outlook improving.
Emkay Global believes the domestic stock market could remain weak until March, but a stability is likely from April onwards, with earnings outlook improving and the FPI selling abating by then. The brokerage has set a 2025 Nifty target of 25,000, expecting small and midcap stocks to outperform the broader market.
Emkay's Sector Picks and Rationale
Emkay has gone contrarian on its sector picks, downgrading technology to 'neutral' on valuations and 'upgrading' consumer discretionary to 'overweight' on the expected turnaround. It has also added staples to its basket of structurally underperforming sectors, while maintaining an 'overweight' stance on healthcare and real estate.
Emkay's Large-Cap, Mid-Cap, and Small-Cap Stock Recommendations
In the large-cap space, Emkay's top picks are Lupin Ltd, Zomato Ltd, and Tata Motors Ltd. For mid-caps, the brokerage recommends IndusInd Bank Ltd, Escorts Ltd, and One 97 Communications Ltd (Paytm). In the small-cap segment, Emkay's choices are StoveKraft, Metropolis Healthcare, and Quess Corp, citing their strong growth potential and diversification opportunities.
Emkay believes the broader markets may stay volatile in the March quarter, as uncertainties around earnings and geopolitics persist. However, the brokerage sees the potential for a turnaround in the second half of 2025, with consumption expected to bounce back and earnings outlook improving.