What’s hot and what’s not in the current market? If you are looking at stocks that you could consider, Bernstein, a global brokerage firm, updated its 2025 model portfolio for India? There are 5 new additions and 4 exclusions. As per the new updated list, Bernstein has added Adani Ports and Bharti Airtel while Reliance Industries and Zomato are in the list of stocks excluded. Let’s take a look at Bernstein’s latest picks and know the curated list of 11 stocks.
5 New Additions to Bernstein’s Portfolio
Here is a look at the top stocks that Bernstein added in its portfolio
IndusInd Bank
IndusInd Bank, a stock that had been struggling recently, is now part of Bernstein’s portfolio, as per the latest update. Despite being one of the worst performers on the Nifty in 2024, Bernstein sees an opportunity here due to its recovery potential.
The shares of the company today were trading at Rs 960 per share at 1:05 PM IST, up by 1.94%. Over the past 6 months, the stock has declined by 33.50%, and in the past year, it has fallen by 43.13%.
Coforge
Coforge, a midcap IT company, has been upgraded to Bernstein’s list. With its footing in the BFSI (Banking, Financial Services, and Insurance) sector and recent acquisition of Cignity, Coforge stands out as a growth stock and has been included in the latest update list by the firm.
Also Read: Why are Tech stocks down today? 3 reasons keeping investors away…
The company’s shares have reported a surge of 45.48% over the past 6 months, and in the past year, the return has increased to 30%, as of the current date.
Bharti Airtel
One of India’s leading players, Bharti Airtel, has been reintroduced into Bernstein’s portfolio. After over a 10% drop from its 52 week high peak to the current trading today at Rs 1,603.20, the stock now looks more appealing to investors.
Adani Ports
Following a significant correction in its stock price, Adani Ports has been added back to Bernstein’s portfolio. Shares of the company are down by 30% from their peak. As per the firm indication, the stock has a long-term growth potential. The company’s stock is currently trading at Rs 122.80 per share, up 5.28% intra-day. Over the past 6 months, the stock price has declined by 24.85%.
Jubilant Foodworks
Jubilant Foodworks, the company well known behind popular food chains like Domino’s and Dunkin’ Donuts, has been included in the model portfolio. With same-store sales growth and expanding its reach internationally, including in Turkey and through its acquisition of Popeyes, Jubilant Foodworks also made an entry in the list.
Stocks Excluded from the Portfolio
Bernstein removed four key companies from its model portfolio. These include-
Reliance Industries
Despite its strong presence in multiple sectors, Reliance Industries has been removed from the portfolio. Bernstein continues to have a positive outlook on the stock but prefers to focus on companies with clearer short-term recovery paths.
Also Read: Why is Angle One stock price falling today? One big worry is…
Reliance Industries has been in the limelight as its stock drops over 25% from its peak of Rs 1,617 in July 2024 to around Rs 1,201, while broader market indices fell by just 6% in the same period. As of January 14, RIL shares are trading at Rs 1,242, showing some recovery near key support levels, including the 200-week moving average. With RIL set to announce its Q3 FY25 earnings on January 16, 2025, analysts expect a mixed report, forecasting an 8% quarter-over-quarter growth in EBITDA but a year-over-year decline, mainly due to challenges in the oil-to-chemicals sector.
HDFC Bank
In a similar note, HDFC Bank, the private lender has been excluded, even though Bernstein remains optimistic about the bank’s long-term prospects.
As of today, HDFC Bank’s stock is trading at Rs 1,646.55, up by 0.97% for the day. However, it has seen a 1.29% decline over the past month and a 7.02% drop in the last week, compared to its previous close of Rs 1,630.85. The bank’s market capitalisation is Rs 12.75 lakh crore, with a PE ratio of 18.44 and an EPS of Rs 90.45. Recent reports show that for the December 2024 quarter, HDFC Bank’s deposits grew by 15.8% year-on-year, significantly outpacing the 3% rise in loans.
REC
REC, a state-run company in the utility sector, has been removed from Bernstein’s portfolio. The brokerage is now focusing its utility investments on NTPC, which is considered a more attractive choice within the sector.
REC stock is currently trading at Rs 475.10, down 15.11% over the past month. The company has a market capitalisation of Rs 1.25 lakh crore. Despite recent volatility, with a 15% drop in the last month, REC posted a 34% rise in Q4 FY24 net profit to Rs 4,016.3 crore. Analysts have set a price target of Rs 600, suggesting potential upside. REC also offers a dividend yield of about 3.3%.
Also Read: JSW Cement IPO gets approval from SEBI: 11 things you need to know about the upcoming issue
Zomato
Zomato, the online food-tech giant in India has been excluded from the list as well.
Zomato’s stock has risen by 3.26%, trading at Rs 235.15 after a seven-day decline. This increase comes after a 20% drop over the past month, contrasting with a 6.61% decline in the Sensex during the same period. Zomato’s recent entry into the Sensex 30 has garnered significant market interest, with expectations of inflows around USD 513 million, which could positively impact its liquidity and investor sentiment. Despite the recent uptick, Zomato’s stock is currently trading below its key moving averages.
Bernstein’s revised portfolio for 2025 reflects a bottom-up approach as well the firm’s increased allocation to sectors like IT services and select consumer stocks, alongside a focus on large-cap and defensive stocks that have recently undergone price corrections.
Bernstein’s Current Model Portfolio for 2025
As part of its updated recommendations for 2025, Bernstein’s model portfolio includes the following 11 stocks:
- IndusInd Bank
- Coforge
- Bharti Airtel
- Adani Ports & SEZ
- Jubilant Foodworks
- Avenue Supermarts (DMart)
- SBI Life Insurance
- L&T (Larsen & Toubro)
- ICICI Bank
- NTPC
- HDFC
While stocks like Reliance Industries and HDFC Bank have been removed, Bernstein continues to look for opportunities in names like IndusInd Bank and Adani Ports, which have seen sharp decline in stock prices, making them attractive options for those looking to “buy the dip.”
(Disclaimer: Views, recommendations, opinions expressed are personal and do not reflect the official position or policy of Financial Express Online. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.)