Private banks have adequate capital buffers to grow comfortably

JB Pharma remains our preferred pick, mainly underpinned by aggressive growth focus in the Domestic+CDMO business, high return ratios, lean B/S and healthy FCF

We view the value unlocking from the Hotel business demerger as a welcome move, especially if it is eventually followed by the demerger of the Other FMCG and IT Services businesses as well. If the same fructifies, re-rating will be sharper going forward. Maintain BUY

We are positive on the CSM leader PI Industries and CPC companies UPL and Sumitomo Chemical India (SCIL), with new product launches, pricing power and long runway for growth. Potential catalysts are a likely PLI scheme for Agrochemicals and concessions related to tariff restructuring to support value addition CPC. Key ‘BUYs’ are PI Industries and UPL in large caps and SCIL in midcaps- on dips. Coromandel International (CRIN) is a value Buy

JB Chem has 7 formulations facilities and 1 API facility with most of the units approved by all major compliance agencies, including units TI10 (OSD), T20 (OSD) and D9 (API), which are USFDA compliant as well.

Selection of 5 large-cap stocks and 7 Mid and small-cap stocks across various diversified sectors such as Pharma, FMCG, Banking, Cement, Autos etc with up to 43% potential gain

We reiterate ICICI Bank as our top pick in the banking space given the visibility of 2% ROA by FY24E on the back of 21% CAGR in net profit over FY22-24E. Given the current increasing interest rate environment, the bank seems one of the best placed from ROA accretion perspective given its higher share of EBLR linkage, enabling faster transmission of rate increases on the asset side.

Challenging environment could be an opportunity for select companies to gain market share

Play on multi-year CV cycle; further re-rating potential

Best is yet to come!