RIL, DMart, Trent & IT stocks: Ventura Securities' Vinit Bolinjkar shares his views

Vinit Bolinjkar, Head of Research at Ventura Securities, has shared his views on select frontline stocks, including Reliance Industries Ltd (RIL), Avenue Supermarts Ltd (DMart), Trent Ltd, and the broader IT sector, amid the ongoing Q3 earnings season.

Responding to a query on RIL and concerns around the "China factor" report, Bolinjkar downplayed the potential negative impact on the stock. "I don't believe the issue would materially hurt Reliance's long-term prospects. The conglomerate has substantial positives lined up over the next few years, particularly in its renewable energy business," he told Business Today on Monday.

Bolinjkar noted that renewables are likely to be the next major growth driver for Reliance. He added that he continues to remain positive on the stock and is not unduly worried about what he termed a "small setback".

On Avenue Supermarts Ltd, which operates the DMart retail chain, Bolinjkar acknowledged the company's strong Q3 performance. DMart reported around 18 per cent year-on-year (YoY) growth in consolidated profit after tax (PAT), which he described as encouraging. However, Ventura remains bearish on the stock. Bolinjkar clarified that the cautious stance is purely valuation-driven.

Commenting on Tata Group-backed retail firm Trent Ltd, the market expert said, "Given the recent price action and valuation concerns, we continue to maintain a bearish view on Trent as well."

Sharing his outlook on the broader IT space, Bolinjkar said he remains circumspect on IT stocks. While acknowledging that IT shares have outperformed the broader market, he pointed out that there has not been any major positive trigger. According to him, risks remain elevated, prompting the brokerage to stay away from the sector for now.

Meanwhile, at least 17 companies are set to announce their Q3 earnings today, including IT bellwethers Tata Consultancy Services (TCS) and HCL Technologies, along with Anand Rathi Wealth, Infibeam Avenues and Krishana Phoschem.