NTPC Green, Tata Tech, RIL & BoI shares: Dharmesh Kant sees 25-30% upside potential

Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, on Tuesday said the financial sector is attracting a lot of foreign capital into the Indian market and that India's economy is poised to grow faster than most global peers.

Sharing his top stock picks, Kant said, "Reliance Industries (RIL), which we think is fairly undervalued, particularly its retail division, is trading at about two times sales. Similar companies in the same segment are trading at around six times sales. Moreover, the new energy and AI-driven businesses are yet to be factored into RIL's valuation. These could act as multiple triggers for the stock over the next two years."

On the banking front, he said, "Bank of India (BoI) from the public sector banking space has been one of our preferred picks for quite some time. The stock is already moving upward, and we believe it has further room to grow. The near-term target range is Rs 155–160."

From the renewable energy segment, the market expert is bullish on NTPC Green Energy Ltd, stating that several solar power projects are expected to be commissioned this year. "This will likely lead to a re-rating of the stock as its green portfolio expands," he added.

Kant also highlighted Tata Technologies Ltd as an attractive opportunity within the auto technology space. "Over the last one and a half years, there were no major new launches due to tariff-related issues between countries. Now that these matters are being resolved, business momentum should pick up. The company's acquisition of a tech firm in Germany will further strengthen ties with Volkswagen and other global clients," he noted.

According to Kant, Tata Tech is expected to deliver 13–14 per cent topline growth with margins nearing 20 per cent.

"These four top stocks -- RIL, BoI, NTPC Green and Tata Tech -- are well-positioned to perform strongly over the next one year. We expect a minimum return of 25 to 30 per cent if investors remain invested," Kant said.