Motilal Oswal tweaks model portfolio ahead of Q3FY24 earnings. Here’s what changed
Motilal Oswal, which has increased its weightage on the sector while effecting notable tweaks in energy and industrials. The changes have been made in view of Q3FY24 earnings, with rate cuts by global central banks, political continuity and institutional inflows providing the undercurrent.
Motilal remains a “firm believer” in the medium-term India story and expects these trends to strengthen with multiple themes at play viz. financialisation of savings, private capex revival, rising discretionary consumption, strengthening of real estate cycle, and the massive creation of digital and physical infrastructure.
While increasing weightage to the real estate, the brokerage added Sobha and Sunteck to its model portfolio and retained Godrej Property. Sobha, in its view, will outperform its peers on growth and profitability through its healthy launch pipeline and recent pricing growth.
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Motilal has also raised weights in industrials too and added ABB India and Kirloskar Oil while continuing to hold Larsen & Toubro (L&T). ABB is expected to benefit from its ability to improve its offerings across segments, markets and geographies.
Meanwhile, Kirloskar's enhanced product portfolio in powergen segment across CPCB 2, CPCB 4+ and fuel-agnostic engines augurs well for the company. «It is a potential re-rating candidate,» this brokerage said.
In cement, Dalmia Bharat finds a place on its long-term capacity addition plans and its ambition to become a pan-India, pure-play cement company, Motilal said.
After a long time, Motilal added weightage in the energy segment premising its stand on reasonable valuations, which it
