PL Capital’s High Conviction Stocks Picks for July 2025: Where to Invest Now
- 16th July 2025
- 03:00:00 PM
- 5 min read
Brokerage Sees Large-Cap Leaders, Select Midcaps Positioned for Gains as India Markets Extend Upmove
Mumbai | July 16 – PL Capital has released its latest list of high conviction large-cap and select midcap stock picks for July 2025, focusing on companies positioned to outperform amid India’s improving macro environment, policy tailwinds, and sectoral momentum. The updated list, part of the brokerage’s July 2025 India Strategy report, is built on deep research, sector outlooks, and business-specific catalysts aligned with India’s growth trajectory.
The announcement comes as Indian equity markets continue to display resilience, with the Nifty 50 rising 0.3% in early Tuesday trade, supported by easing inflation, improving liquidity post-RBI rate cuts, and signs of a broad-based consumption revival ahead of the festive season.
“Our high conviction portfolio reflects our best investment ideas based on bottom-up fundamentals and structural upside. These businesses not only lead their sectors but also stand to benefit from India’s medium-term growth story,” PL Capital said in the report. We expect domestic demand-oriented sectors to outperform, supported by lower rates, stable inflation, and strong public capex momentum,” said Amnish Aggarwal, Head of Research, PL Capital.
High Conviction Stock Picks for July 2025
The report has highlighted 11 high conviction stocks across banking, FMCG, pharma, telecom, capital goods, aviation, and consumer durables, with potential upsides ranging from 9% to nearly 30%.
| Company | Sector | CMP (₹) | Target Price (₹) | Upside (%) |
| Samhi Hotels | Hotels | 238 | 308 | 29.40% |
| ITC | FMCG | 419 | 538 | 28.30% |
| Lupin | Pharmaceuticals | 1,926 | 2,400 | 24.60% |
| ABB India | Capital Goods | 5,648 | 6,851 | 21.30% |
| ICICI Bank | Banking | 1,423 | 1,700 | 19.50% |
| Apollo Hospitals | Hospitals | 7,220 | 8,350 | 15.70% |
| InterGlobe Aviation | Airlines | 5,932 | 6,691 | 12.80% |
| Hindustan Aeronautics (HAL) | Defence/Cap Goods | 4,886 | 5,500 | 12.60% |
| Bharti Airtel | Telecom | 1,921 | 2,148 | 11.80% |
| Titan Company | Consumer Durables | 3,405 | 3,756 | 10.30% |
| Kotak Mahindra Bank | Banking | 2,204 | 2,400 | 8.90% |
Key Insights Behind the Picks
ITC: Attractive valuations, stable FMCG margins, and easing input costs support a broad-based recovery across segments, making ITC a high conviction pick in the consumer staples space.
Lupin: Expected to benefit from margin expansion driven by niche US launches, domestic demand recovery, and operational efficiencies.
Samhi Hotels: Positioned to capture domestic travel demand growth post-GIC fund infusion, with improved financial flexibility supporting EBITDA growth.
ICICI Bank: Remains a top financial sector pick with robust asset quality, consistent credit growth, and potential margin expansion amid easing rates.
Apollo Hospitals: Seen as a structural beneficiary of healthcare demand, with further value unlocking expected from the demerger of its digital arm and pharmacy consolidation.
ABB India: Benefits from India’s infrastructure push and energy transition momentum, with a strong order pipeline supporting visibility.
Bharti Airtel: Structural play on India’s rising data consumption and ARPU premiumisation, providing earnings resilience.
HAL: Supported by the government’s defence indigenisation efforts, HAL’s strong order book and program pipeline underpin growth.
InterGlobe Aviation: Well-positioned to capture strong domestic travel demand, while easing ATF prices aid margin recovery.
Kotak Mahindra Bank: Strong capitalisation, stable asset quality, and retail credit growth revival position Kotak for steady earnings growth.
Titan: Poised to benefit from discretionary consumption recovery during the festive season, with stable jewellery demand trends.
Sectoral Allocation: Playing to India’s Strengths
PL Capital maintains an overweight stance on sectors aligned with India’s growth drivers:
- Banking: Lower interest rates and stable inflation support credit growth.
- Healthcare & Pharma: Steady demand and operational efficiencies underpin resilience.
- Capital Goods & Defence: Driven by government-led infrastructure and indigenisation.
- FMCG & Consumer Durables: Supported by easing input costs, a normal monsoon, and rising rural consumption.
- Telecom: Benefitting from rising data consumption and premiumisation trends.
We expect Nifty earnings to grow at a CAGR of 13.4% over FY25-27, with a 12-month Nifty target of 26,889, as India’s macroeconomic backdrop remains conducive for equities.
Market Outlook
PL Capital maintains its overweight stance on domestic demand-focused sectors including banking, capital goods, healthcare, telecom, and consumer sectors. The brokerage projects Nifty earnings to grow at a CAGR of 13.4% over FY25-27, with a 12-month Nifty target of 26,889.
“India’s macro backdrop with low inflation, supportive monetary policy, and robust public capex is favourable for equities. We see opportunities for investors to align portfolios with high conviction names that combine earnings visibility and sector leadership,” the report noted.
Performance Track Record
PL Capital’s model portfolio has consistently delivered outperformance over the benchmark:
| Period | Model Portfolio Return | Nifty Return | Alpha |
| Since Nov 2018 | 156.00% | 133.00% | 22.90% |
| Since Apr 2023 | 15.10% | 14.00% | 1.10% |
| Since Last Report | 1.20% | 1.10% | 0.10% |
Bottom Line
In an environment of selective growth and shifting global cues, PL Capital’s high conviction stock picks provide investors with a focused strategy to capture value and momentum in India’s equity markets.
Anchored in deep research and forward earnings potential, these names represent PL Capital’s most compelling large-cap and midcap opportunities for 2025.
“Investors should focus on businesses with clear earnings visibility and sector leadership, especially as India’s macro and policy backdrop remains constructive,” noted Aggarwal.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
