Emkay has made three changes to its model portfolio, adding Deepak Fertilisers and Petrochemicals Corporation Ltd., Lodha Developers Ltd. and Hexaware Technologies Ltd. to replace Deepak Nitrite, Aditya Birla Real Estate and HCL Technologies, respectively.
Emkay's exposure to the “post-war oil price weakness” theme remains at 25%. Larsen & Toubro is its biggest individual holding at 7% of the portfolio. Other key picks under the theme include HPCL at 5%, Tata Motors CV business at 5%, Maruti Suzuki at 4%, and Delhivery at 4%.
By Gareema Bangad
Emkay Global has retained its financial year 2027 Nifty 50 target at 29,000, saying it remains constructive on Indian equities amid expectations of a recovery in earnings growth once the Iran conflict eases. The Nifty 50 target implies an upside potential of 24% from Tuesday's closing levels.
The brokerage expects Nifty earnings growth of 14% in FY27 and said its portfolio positioning remains geared toward a “post-war” scenario of lower crude oil prices and improving domestic consumption.
In the India Strategy Weekly IdeaMetrics report dated May 8, Emkay said reports of a possible peace deal between the US and Iran have brought the “peace trade” back into focus.
The brokerage firm said it does not rule out another “false dawn”, but expects the war to end and the Strait of Hormuz to reopen within weeks and sees crude slipping to $80 per barrel in the coming weeks.
Emkay's exposure to the “post-war oil price weakness” theme remains at 25%. Larsen & Toubro is its biggest individual holding at 7% of the portfolio. Other key picks under the theme include HPCL at 5%, Tata Motors CV business at 5%, Maruti Suzuki at 4%, and Delhivery at 4%.
Emkay's Model Portfolio & Stock Picks
Emkay has made three changes to its model portfolio, adding Deepak Fertilisers and Petrochemicals Corporation Ltd., Lodha Developers Ltd. and Hexaware Technologies Ltd. to replace Deepak Nitrite, Aditya Birla Real Estate and HCL Technologies, respectively.
Deepak Fertilisers
On Deepak Fertilisers, the brokerage said the stock is a play on the sharp rally in technical ammonium nitrate and ammonia prices, which have risen 49% and 61%, respectively, over the last two months. It said the company’s backward integration and normalisation in gas supplies should support earnings upgrades. Emkay has a "Buy" rating on the stock with a price target of ₹2,000.
Lodha Developers
For Lodha Developers, Emkay said it sees a robust 14% growth during FY26-28 despite a high base after the company delivered a 28% pre-sales CAGR between financial year 2021 and financial year 2026.
The brokerage also highlighted Lodha’s expansion beyond the Mumbai Metropolitan Region into Pune, NCR and Bengaluru. It has a 'Buy' rating and a price target of ₹1,250 on the stock.
Hexaware Technologies
On Hexaware Technologies, the brokerage said concerns around the long-term impact of AI on the IT sector have been over-discounted. Emkay expects Hexaware’s CY26 growth guidance to be supported by the ramp-up of earlier deal wins, a stronger deal pipeline and benefits from a revamped hunting team. The brokerage has a ‘Buy’ rating on the stock with a target price of ₹570.
Consumer discretionary remains Emkay’s biggest overweight sector at 31% compared with 12% in the BSE 200 benchmark, while Industrials is another key overweight at 16% versus the benchmark weight of 12%.
The brokerage also remains overweight on real estate and materials, while staying underweight on financials, healthcare, energy, staples, telecom and technology.