2 weeks ago
Kotak drops TCS, DLF; adds Adani Ports, HDFC Life
Imagine you have a list of your favorite toys, and sometimes you change the list to pick better ones.
A big money company in India called Kotak Institutional Equities makes lists of companies people might want to invest in.
It just changed its lists.
It took off some companies like TCS, DLF, and Lodha because their stock prices had already gone up a lot.
It put more money on other companies like Adani Ports and HDFC Life.
It thinks banks and insurance companies are good deals right now.
It also added a construction company called Kalpataru Projects to its mid-size list.
The company still likes businesses that serve people at home and factories that make things in India.
It expects big Indian companies to earn more money in the next couple of years.
These changes help investors decide where to put their money.
Kotak Institutional Equities removed Tata Consultancy Services (TCS), which had a 1.8% weight, from its large cap model portfolio after the stock gained 19% since early July.
Real estate stocks DLF and Lodha Developers were dropped, together accounting for a 2.8% portfolio weight, due to concerns over stagnant volumes and affordability.
The freed-up 4.6% weight was redistributed across Adani Ports and Special Economic Zone, Eternal, GMR Airports, HDFC Life Insurance, Hindalco Industries, and Shriram Housing Finance.
Adani Ports received a 1.5% allocation increase and HDFC Life Insurance received a 1% increase, while Kalpataru Projects International was added to the midcap portfolio.
Kotak expects Nifty net profit to grow 18% in FY27 and 14% in FY28, following 8% growth in FY26.
The brokerage continues to favour domestic discretionary services and domestic manufacturing themes, while remaining cautious on information technology services.
- Who
- Kotak Institutional Equities, the brokerage that manages the model portfolios.
- What
- Kotak removed TCS, DLF and Lodha Developers from its large cap model portfolio, added Kalpataru Projects International to its midcap portfolio, and increased allocations to financial and infrastructure stocks.
- Where
- India, focused on the Indian equity market.
- When
- Announced in its latest report, following a sharp stock recovery from the March-April 2026 market lows.
- Why
- Sharp price rises shrank the investment opportunity set, so Kotak continues to favour domestic discretionary services and domestic manufacturing themes.
Key facts
- Brokerage
- Kotak Institutional Equities
- TCS weight removed
- 1.8%
- DLF and Lodha combined weight removed
- 2.8%
- Freed weight redeployed
- 4.6%
- Adani Ports allocation increase
- 1.5%
- HDFC Life allocation increase
- 1%
- Kalpataru Projects valuation
- 14.5 times one-year forward earnings per share
- Nifty net profit growth forecast
- 18% in FY27 and 14% in FY28
Sources
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