2 days ago
Bernstein Adds Adani Ports, Eternal, Paytm to India Portfolio
Bernstein is a financial research firm that changed the list of Indian stocks it recommends.
It added Adani Ports, Eternal and Paytm.
It removed DMart because the stock has already performed well and faces stronger competition from quick-commerce companies.
Bernstein still expects the Nifty 50 index to reach 26,000.
It thinks government support, money flowing through banks and changing consumer habits could help some businesses.
Ports could benefit from strong finances and international operations.
Eternal could benefit if competition in quick commerce becomes less intense.
Paytm could gain if a new fee system for UPI payments is introduced.
Bernstein also continues to favor companies such as Titan, Mahindra & Mahindra, HDFC Bank and Axis Bank.
It warns that policy-supported growth may not always represent lasting improvements in a company’s fundamentals.
Bernstein added Adani Ports, Eternal and Paytm to its 13-stock India model portfolio.
Avenue Supermarts, known as DMart, was removed after recent outperformance and rising quick-commerce competition.
The brokerage retained its Nifty 50 target of 26,000 while maintaining a modest outlook for broader market returns.
Bernstein set target prices of ₹1,973 for Adani Ports, ₹350 for Eternal and ₹2,200 for Paytm.
Its “distortion economy” thesis focuses on policy support, government transfers, liquidity and structural trends that may benefit selected companies.
- Who
- Bernstein and the companies in its India model portfolio.
- What
- Bernstein reshuffled its portfolio, adding Adani Ports, Eternal and Paytm, removing Avenue Supermarts, and retaining a Nifty 50 target of 26,000.
- Where
- India’s equity market and economy.
- When
- The changes were described in Bernstein’s recent strategy note; no specific date was provided.
- Why
- Bernstein believes policy support, government transfers, liquidity, consumption trends and structural changes could benefit selected sectors and companies, while warning that some effects may be temporary.
Policy-Supported Opportunity
Temporary Support and Fundamental Risk
Economic distortions
Policy-Supported Opportunity
Government transfers, subsidies, liquidity and other policy interventions can create investment opportunities and support corporate earnings.
Temporary Support and Fundamental Risk
Policy-supported growth may last for an uncertain period and should not automatically be treated as a permanent improvement in underlying fundamentals.
Quick commerce and delivery
Policy-Supported Opportunity
Eternal, Delhivery and other logistics and delivery businesses could benefit from expanding gig work, flexible employment and last-mile networks.
Temporary Support and Fundamental Risk
Quick-commerce expansion is increasing competition for urban consumption businesses such as DMart.
Consumption and public spending
Policy-Supported Opportunity
Government wage revisions and rural support measures could strengthen discretionary and rural consumption, benefiting companies such as Titan and Mahindra & Mahindra.
Temporary Support and Fundamental Risk
The eventual effect on government finances could constrain spending on subsidies and capital expenditure.
Key facts
- Portfolio additions
- Adani Ports, Eternal and Paytm
- Portfolio removal
- Avenue Supermarts, also known as DMart
- Model portfolio size
- 13 stocks
- Nifty 50 target
- 26,000
- Adani Ports target price
- ₹1,973
- Eternal target price
- ₹350
- Paytm target price
- ₹2,200
- Continuing holdings
- L&T, NTPC, Titan, HDFC Bank and Axis Bank remain among the portfolio’s anchor names.
Quotes
Bernstein
Brokerage issuing the India portfolio and market strategy note
“Quick commerce and food delivery companies such as Eternal and e-commerce ones such as Delhivery and other such ecosystem beneficiaries stand to gain from this dynamic”
livemint.com
“Distortions can persist far longer than investors expect. The key is not to fight them, but to identify who benefits while they last”
livemint.com
Sources
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