- Bernstein added Adani Ports, Eternal, and Paytm to its India model portfolio
- Adani Ports target price set at Rs 1,973, implying a 17% upside
- Eternal added with a target price of Rs 350, indicating nearly 11% upside
Bernstein has added Adani Ports, Eternal and Paytm to its India model portfolio, while removing Avenue Supermarts, as the global brokerage repositions around stocks with visible near-term catalysts.
Adani Ports & Special Economic Zone re-enters the portfolio at an entry price of Rs 1,677.1, with Bernstein setting a target price of Rs 1,973. Against the stock's closing price of Rs 1,682.40 on August 18, the target implies an upside of around 17%. The brokerage cited the company's healthy balance sheet, strong pricing power and international business as key growth drivers, alongside an improving global environment following the stock's recent correction.
Eternal has been added at an entry price of Rs 317.1, with a target price of Rs 350. The stock closed at Rs 315.90 on August 18, leaving Bernstein's target implying an upside of nearly 11%. Bernstein said the company, which it had previously avoided given the competitive quick-commerce landscape and a potential rival listing, has shaken off those overhangs and asserted its dominant position in the segment. The brokerage pointed to EBITDA and net order value growth ahead of estimates, along with steady growth in the food delivery business.
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Bernstein has reshuffled its India portfolio.
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Paytm parent One97 Communications has been added at an entry price of Rs 1,559.4, with Bernstein setting a target of Rs 2,200. The stock closed at Rs 1,546.30 on August 18, implying an upside of over 42% to Bernstein's target, the sharpest among the three additions. The brokerage called it a momentum play on the likely finalisation of the merchant discount rate on UPI transactions, adding that the core business is protecting downside risk while an MDR rollout could lift net payment margins and feed into earnings growth.
Bernstein removed Avenue Supermarts from the portfolio following its recent outperformance and citing growing risks to urban consumption growth from quick commerce.
The changes take Bernstein's India model portfolio to 13 stocks, with the brokerage retaining core holdings including Larsen & Toubro, NTPC, Titan, HDFC Bank, Axis Bank, Power Finance Corporation, Home First Finance, Nuvama Wealth, Zydus Lifesciences and Mahindra & Mahindra.
Details of Bernstein's latest portfolio. A bet on 13 stocks.
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