NTPC Green, RIL, LIC, HAL, BEL, Paytm, NCC, L&T: Cholamandalam's Dharmesh Kant shares outlook
"We continue to have a positive bias on that because there's a structural story in the making. There will be a few quarters where there could be some hiccups, but net-net, we see it unfolding in a very positive way. The government has become a big spender in that sector as well. Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL) remain top picks, while DCX Systems Ltd is preferred from the midcap space," he told Business Today.
- Sep 16, 2025,
- Updated Sep 16, 2025 3:43 PM IST
Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, on Tuesday shared his views on key sectors and stock preferences, highlighting defence, infrastructure, renewables, automobiles, metals and select large-cap names.
Kant said the domestic brokerage has been positive on defence for the past two years and continues to maintain a constructive outlook. "We continue to have a positive bias on that because there's a structural story in the making. There will be a few quarters where there could be some hiccups, but net-net, we see it unfolding in a very positive way. The government has become a big spender in that sector as well. Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL) remain top picks, while DCX Systems Ltd is preferred from the midcap space," he told Business Today.
On infrastructure, Kant said valuations look comfortable, with companies such as NCC Ltd and Larsen & Toubro (L&T) expected to gain traction in the second half of FY26.
He also expressed optimism on renewables, pointing to NTPC Green Energy's recent commissioning of a plant in Gujarat. "Things will continue unfolding out there and a big profitability jump will be seen," he added.
In cyclical sectors, Kant said, automobiles and metals continue to remain part of the core economy basket they are tracking.
Separately, he named Reliance Industries Ltd (RIL) and Life Insurance Corporation of India (LIC) as preferred picks. He cited valuation comfort in Reliance and reasonable valuations for LIC compared to domestic private insurers.
From the fintech space, he suggested One 97 Communications Ltd, the parent of Paytm, noting that the company has shown a path to profitability. "We are sticking with that, I mean the market leader in the segment," he said.
Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, on Tuesday shared his views on key sectors and stock preferences, highlighting defence, infrastructure, renewables, automobiles, metals and select large-cap names.
Kant said the domestic brokerage has been positive on defence for the past two years and continues to maintain a constructive outlook. "We continue to have a positive bias on that because there's a structural story in the making. There will be a few quarters where there could be some hiccups, but net-net, we see it unfolding in a very positive way. The government has become a big spender in that sector as well. Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL) remain top picks, while DCX Systems Ltd is preferred from the midcap space," he told Business Today.
On infrastructure, Kant said valuations look comfortable, with companies such as NCC Ltd and Larsen & Toubro (L&T) expected to gain traction in the second half of FY26.
He also expressed optimism on renewables, pointing to NTPC Green Energy's recent commissioning of a plant in Gujarat. "Things will continue unfolding out there and a big profitability jump will be seen," he added.
In cyclical sectors, Kant said, automobiles and metals continue to remain part of the core economy basket they are tracking.
Separately, he named Reliance Industries Ltd (RIL) and Life Insurance Corporation of India (LIC) as preferred picks. He cited valuation comfort in Reliance and reasonable valuations for LIC compared to domestic private insurers.
From the fintech space, he suggested One 97 Communications Ltd, the parent of Paytm, noting that the company has shown a path to profitability. "We are sticking with that, I mean the market leader in the segment," he said.