Bulls And Bears — India Valuation Handbook; Top Idea Picks For Large, Mid, Small Cap Stocks: Motilal Oswal

The recent correction in broader markets factors in some of the potential disappointments in earnings ahead. That said, the valuations for midcaps and smallcaps are still expensive vis-à-vis their history as well as versus Nifty-50..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.The market correction has coincided with a slowdown in earnings growth, as the Nifty-50 has managed only 4% PAT growth in 9M FY25 (following a healthy 20%+ CAGR during FY20-24). The expectations for FY26 corporate earnings (19% for our Universe and 15% for the Nifty-50) are still somewhat elevated, in our opinion, given the underlying macro-micro backdrop and are thus ripe for further downgrades.The recent correction in broader markets factors in some of the potential disappointments in earnings ahead. That said, the valuations for midcaps and smallcaps are still expensive vis-à-vis their history as well as versus Nifty-50. The Nifty is trading at a 12-month forward P/E of 18.6x, below its long-period average (LPA) of 20.5x. Thus, we continue to remain biased toward largecaps with a 76% allocation in our model portfolio. We are overweight on consumption, BFSI, IT, industrials, healthcare, and real estate, while we are underweight on oil and gas, cement, automobiles, and metals. Top ideas: Largecaps – Reliance Industries, Bharti Airtel, ICICI Bank, SBI, HUL, L&T, Sun Pharma, Maruti Suzuki, M&M, Titan, Trent, and LTIMindtree; Midcaps and Smallcaps – Indian Hotels, Dixon Tech, JSW Energy, BSE, Godrej Properties, Coforge, JSW Infra, Page Industries, Ipca Labs, Metro Brands, and Angel One. .Click on the attachment to read the full report:.'Buy' L&T Finance Maintains Motilal Oswal, Sees 23% Upside — Here's Why .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bulls And Bears — India Valuation Handbook; Top Idea Picks For Large, Mid, Small Cap Stocks: Motilal Oswal

Motilal Oswal is overweight on consumption, BFSI, IT, industrials, healthcare, and real estate, while underweight on oil and gas, cement, automobiles, and metals.

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