The brokerage firm Kotak Institutional Equities has given big bets on three stocks – United Spirits, Crompton Greaves Consumer, and Syrma SGS Technology. As per the brokerage report, these stocks offer a mix of long term growth potential, improving fundamentals, and sectoral tailwinds.
Let’s take a look at why the brokerage is optimistic about these stocks and the rationale behind its calls.
Kotak Institutional Equities on United Spirits: ‘Add’ with a fair value of Rs 1,475
The brokerage firm Kotak Institutional Equities has given an ‘Add’ rating to United Spirits (UNSP), citing concerns over recent regulatory developments in Maharashtra. The revised fair value stands at Rs 1,475, down from Rs 1,575 earlier, after the brokerage trimmed FY26-28 earnings estimates by 3-6%.
According to the brokerage report, the Maharashtra government has sharply raised excise duties on the Popular, Lower-Prestige, and Mid-Prestige segments of liquor, which together account for 13% of UNSP’s volume and 11% of its value. “This move sets a concerning precedent – state government using liquor taxation to fund populist electoral promises and favoring state-manufactured liquor at the expense of IMFL,” the report noted.
The state government has hiked the excise duty from 300% to 450% of the manufacturing cost for popular segments. It also introduced a new category Maharashtra Made Liquor (MML) which enjoys lower taxation. According to the brokerage, this move is likely to lead to “a 30-45% increase in the MRP of Popular, LP and MP segments.”
UNSP brands like DSP Black, McDowell’s No.1, and Royal Challenge could see pricing pressure. The brokerage noted, “This move sets a concerning precedent – state government using liquor taxation to fund populist electoral promises and favoring state-manufactured liquor at the expense of IMFL.”
Kotak Institutional Equities on Crompton Greaves Consumer: ‘Buy’ with a fair value of Rs 410
The brokerage firm Kotak Institutional Equities has reiterated a ‘Buy’ rating on Crompton Greaves Consumer, revising its fair value upward to Rs 410 from the earlier Rs 385.
As per the brokerage report, Crompton is aiming to double its total addressable market from Rs 1 trillion to Rs 2 trillion by March 2026. “Given the high penetration in its existing categories, TAM expansion through new businesses that can leverage its brand, scale/GTM and trust is the right way to grow the company,” the brokerage noted.
According to the brokerage, the company has made key organisational changes, including hiring professionals from top consumer firms and refreshing the identity of its subsidiary brand Butterfly.
As per the brokerage, “Management believes that the solar pumps segment has the potential to double in FY2026E and scale up to Rs 8–10 billion in 3-4 years.” The firm expects Crompton’s consolidated EBITDA margins to rise to 12-12.5% over the same period, despite ongoing investments in advertising, R&D, and new business initiatives.
Kotak Institutional Equities on Syrma SGS Technology: ‘Add’ with an unchanged fair value of Rs 570
The brokerage firm Kotak Institutional Equities has maintained an ‘Add’ rating on Syrma SGS Technology with an unchanged fair value of Rs 570.
According to the brokerage report, Syrma is guiding for 30% revenue growth in FY26, led by demand from the automotive, industrial, and medical sectors. The brokerage noted that “potential participation in the component PLI scheme and inorganic acquisitions would be additional medium-term growth drivers.”
The brokerage observed a 220 basis point improvement in FY25 margins as the consumer segment share dropped below 30%. “Going forward, we expect EBITDA margins to improve to 9% by FY27 from 8.5% in FY25,” said the brokerage, citing better product mix and improved working capital management.
Syrma is actively exploring a foray into component manufacturing under the PLI scheme. The company is evaluating opportunities in electromechanical parts, PCB, connectors, and camera modules, with potential investments of up to Rs 1,000 crore in collaboration with a JV partner. The brokerage highlights that an enabling resolution is already in place for a Rs 1,000 crore QIP to fund future expansion.