Amid heightened global tension, Morgan Stanley's Ridham Desai has updated his focus list, with Adani Power, Lenskart and Prestige Estates being the key additions while Reliance Industries, Titan and Interglobe Aviation make their way out.
In his latest note, Desai has highlighted Adani Power as a key counter to watch due to the company's strong market positioning as India's largest independent power producer and second-largest thermal developer after NTPC, with a market share of 8% in both coal capacity and generation.
The Morgan Stanley report notes that Adani Power has a strong balance sheet with FY25 net debt/Ebitda of 1.5x. Some of Adani Power's key moats include strategic locations of its acquisitions converting merchants into PPA, a strong execution track record in plant commissioning, and land availability for expansion, among others. The firm notes that APL has the highest return ratios among its peers.
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Lenskart, too, has received a favourable outlook from Ridham Desai, who notes that the new-age company is a 'distinctive play on shifting lifestyle dynamics and is largely isolated from macro headwinds'. Desai adds that Lenskart could achieve global scale with high profitability if the execution is on point.
Another key addition to Desai's focus list is Prestige Estates, a leading real estate play with the possibility of delivering strong growth momentum, especially in FY26, pre-sales projected to grow by 80% on a year-on-year basis.
Prestige has also levelled up its annuity portfolio, with rental income expected to increase nearly fourfold over FY26 to FY28. A major contributor will be a BKC asset, although realisation could come in FY28-FY29. Prestige has also recently signed a Rs 125 crore MoU with the Maharashtra government, highlighting increased focus on the data centre space.
On the flip side, Morgan Stanley has removed Reliance Industries, Titan and Interglobe Aviation from the focus list. Meanwhile, from a sectoral perspective, Desai remains overweight on financials, consumer discretionary and industrials.
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