PL Capital High Conviction Stock Picks to Watch Now!

Explore PL Capital’s top high conviction stock picks based on expert research and analysis. Stay ahead with key expert insights – see which stocks made the list!

Mumbai | May 28 – PL Capital has released its latest list of high conviction large-cap stock picks, focusing on companies positioned to outperform amid improving domestic fundamentals and global recalibrations. The new line-up, part of the firm’s May 2025 India Strategy report, is built on deep research, sector outlooks, and business-specific catalysts that align with India’s evolving economic narrative.

With the equity markets staging a solid comeback—Nifty 50 gaining 10% in six weeks—and Q4FY25 earnings surprising positively, PL Capital sees a timely opportunity for investors to reallocate towards select names offering earnings visibility, policy tailwinds, and scalable growth.

“Our high conviction portfolio reflects our best ideas in large-cap equities based on bottom-up fundamentals and structural upside,” PL Capital said in the report. “These are businesses that not only lead their sectors but also stand to benefit from India’s medium-term macro trajectory.”

PL Capital’s High Conviction Large-Cap Picks – May 2025

The following stocks feature in PL Capital’s conviction list, with upside potential ranging from 9% to over 31%, based on price targets derived from forward earnings and valuation benchmarks:

Key Insights Behind the Picks

• Sun Pharma- PL Capital sees Sun Pharma as a long-term winner, citing strength in its specialty portfolio and improving profitability in the U.S. and ROW markets. A pipeline of six clinical-stage drugs and the Leqselvi launch are key earnings triggers.
• ICICI Bank- With strong growth in core operating metrics and robust asset quality, ICICI Bank remains a top choice in the financial sector. The bank is expected to deliver sustainable RoEs above 18% and maintain double-digit earnings growth.
• ITC- Attractive valuations, a 4%+ dividend yield, and a turnaround in FMCG margins make ITC a compelling story. PL expects broad-based recovery across business segments in FY26.
• HAL- Benefiting from India’s growing defence focus, HAL’s strong order book and strategic role in indigenous aviation programmes like Tejas Mk1A and AMCA support its growth visibility.
• Kotak Mahindra Bank- Improved NIMs, a well-capitalised balance sheet, and lean operating model underpin the bullish view on Kotak. PL expects its earnings to scale with improving loan growth and stable asset quality.

Sectoral Allocation: Playing to India’s Strengths

PL Capital’s overweight stance continues in sectors such as:

• Banking: Structural tailwinds, improving credit offtake, and low NPAs.
• Healthcare & Pharma: Resilient demand, specialty focus, and export growth.
• Capital Goods & Defence: Government-led infrastructure and indigenisation push.
• FMCG: Benefiting from soft inflation, tax cuts, and rising rural consumption.

We continue to view India’s macro environment as supportive of sustained equity market performance. With CPI inflation easing to a six-year low of 3.16% and food inflation at just 1.78%, the backdrop remains favourable for consumption recovery. A normal monsoon forecast by the IMD further strengthens the rural outlook. We also anticipate that interest rate cuts and potential personal income tax relief in FY26 could act as powerful catalysts for increased discretionary spending and a pick-up in private capex.

Track Record of Outperformance

PL Capital’s model portfolio continues to deliver alpha over benchmark indices:

Bottomlin- Clarity in Conviction

In an environment of selective growth and shifting investor expectations, PL Capital’s high conviction picks offer a focused view of where value and momentum intersect. Anchored in expert research and forward earnings potential, these names represent PL’s most compelling large-cap opportunities in 2025

Explore the full report here

For a tailored portfolio review or advisory services, visit: www.plindia.com