Paytm, Eternal, Adani Ports: Bernstein adds 3 stocks, removes this RK Damani stock | Portfolio watch

Bernstein has reshuffled its India model portfolio, reintroducing Adani Ports and Special Economic Zone Ltd (Adani Ports) and adding One 97 Communications Ltd and Eternal Ltd. The foreign brokerage removed Avenue Supermarts Ltd (DMart), saying stock-specific opportunities offered the best route to outperformance in an environment of modest market returns.

The foreign brokerage maintained its neutral Nifty target of 26,000 and is tweaking its portfolio toward stocks with visible catalysts. Even with a not-so-compelling overall set-up, the market remains quite interesting beneath the surface, analyts led by Bernstein's Venugopal Garre wrote in a note.

Bernstein added Eternal, saying strong Ebidta and net order value growth, good management commentary and its dominant quick-commerce position suggest competitive concerns are easing. It noted that Eternal's food-delivery business is also showing steady growth.

As per Bloomberg, Bernstein added Paytm as a momentum play ahead of the potential finalization of merchant discount rate. Adani Ports has found a place back in Bernstein's portfolio after its recent correction. Bernstein cited an improving global environment, a
healthy balance sheet, pricing power and international operations as an important growth driver.
Meanwhile, DMart, promoted by Radhakishan Damani (RK Damani), was removed from Bernstein's list following its outperformance. The foreign brokerage sees no decisive near-term direction for DMart and flagged risks from weak sowing, elevated wholesale inflation and the continuing threat from quick commerce.

Larsen & Toubro Ltd (L&T), Titan Company, Axis Bank Ltd, HDFC Bank Ltd, Mahindra & Mahindra Ltd (M&M) and Zydus Life are said to be among its portfolio holdings.