Adani Ports, IndusInd Bank, Bharti Airtel Among Stocks Added To Bernstein Portfolio

In a reshuffling of its India model portfolio, Bernstein has added five new names, while removing four existing stocks. This adjustment signals the brokerage's evolving market outlook for 2025, as it adopts a more selective approach to stock picks, with a focus on companies poised to recover in the latter half of the year.

The stocks additions to the portfolio include IndusInd Bank Ltd., Coforge Ltd., Bharti Airtel Ltd., Adani Ports and Special Economic Zone Ltd., and Jubilant Foodworks Ltd. IndusInd Bank, following a steep correction, now offers attractive valuations and potential upside, particularly with an expected pick-up in corporate credit growth, according to Bernstein. Coforge, a midcap IT company, is added due to its strong position in the BFSI sector and potential revenue growth, bolstered by its recent acquisition of Cignity.

In the telecom space, Bharti Airtel has replaced Reliance, driven by its dominant position in India’s telecom duopoly and strong subscriber growth. Adani Ports has been added as a tactical buy, following its 25% price correction, while Jubilant Foodworks is included due to its solid performance in same-store sales growth and its expansion into new markets like Turkey and acquisition of global brands like Popeyes.

On the other hand, Reliance Industries Ltd., HDFC Bank Ltd., REC Ltd., and Zomato Ltd. have been removed from the portfolio. While Bernstein maintains a positive outlook on these stocks long-term, it sees no immediate catalysts for growth and is opting for other opportunities.

"After another set of relatively weak numbers and the system’s credit growth normalising to lower levels, we remove HDFC Bank from our portfolio after nearly four years," the brokerage said.

While still comfortable on valuations and the sector as a whole, Bernstein sees this year as a reset where longer term trends on credit growth public sector banks vs private banks will emanate. "...with any near term catalysts lacking and other bottom-up opportunities worth exploring, we choose to part ways with this stock for the time being."

This move reflects Bernstein's belief that certain stocks may not be positioned to capitalise on the upcoming market recovery, while others, especially those with strong growth potential or attractive valuations, are now better positioned for the future.

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