Kotak Institutional Equities has reshuffled its model portfolios amid uncertainty surrounding the West Asia conflict, adding Billionbrains Garage Ventures (Groww) and Torrent Pharmaceuticals to its large-cap basket while removing City Union Bank and shifting Info Edge and Swiggy to the mid-cap portfolio.
The brokerage said its large-cap and mid-cap portfolios continue to be positioned around its base-case assumption that the conflict will end over the next few weeks. Kotak retained a preference for economy-sensitive sectors such as banks and non-banking financial companies, as well as crude-sensitive sectors including transportation.
The brokerage sees 19% upside to its 12-month fair value estimate of Rs 220 for Groww and 13% upside to its 12-month fair value estimate of Rs 5,000 for Torrent Pharmaceuticals.
The changes come as Kotak continues to maintain a constructive view on domestic cyclicals despite elevated geopolitical uncertainty. The brokerage said recent corrections and stock-specific developments have created opportunities to reposition the portfolio while remaining aligned with its broader market outlook.
Kotak on Billionbrains Garage Ventures (Groww): Added to large cap portfolio
Kotak added Billionbrains Garage Ventures, the parent company of Groww, to its large-cap model portfolio with a weight of 150 basis points.
The brokerage said the stock has corrected around 19% from its peak levels in early May, creating an attractive entry point. Kotak noted that it had removed Groww from the portfolio around the same period because of the sharp run-up in the share price, but stressed that there has been no change in its fundamental view on the company.
Explaining the decision, Kotak said, “We are re-introducing Groww in the portfolio after the recent correction. Our positive view on the company’s fundamentals remains unchanged.”
The brokerage sees 19% upside to its 12-month fair value estimate of Rs 220. Kotak also noted that the stock is trading at 40 times FY2027 estimated earnings and 32 times FY2028 estimated earnings.
According to the brokerage, Groww remains one of its preferred plays within the financial services ecosystem because of its growth prospects and business positioning.
Kotak on Torrent Pharma: Added to large cap portfolio
Kotak added Torrent Pharmaceuticals to the large-cap model portfolio with a weight of 150 basis points after resuming formal coverage of the stock.
The brokerage had removed Torrent Pharma from the portfolio in December 2025 after suspending coverage following the acquisition and merger-related developments involving JB Chemicals and Pharmaceuticals. With coverage reinstated, Kotak said it continues to view the company favourably.
Discussing the addition, Kotak said, “We continue to like Torrent Pharma’s fundamentals and growth prospects following the resumption of coverage.”
The brokerage sees 13% upside to its 12-month fair value estimate of Rs 5,000.
Kotak said Torrent Pharma’s earnings profile and business fundamentals justify its inclusion in the recommended portfolio as part of the latest rebalance.
Why Info Edge, Swiggy move to the midcap portfolio
As part of the reshuffle, Kotak moved Info Edge (India) and Swiggy Ltd. from the large-cap portfolio to the mid-cap portfolio. Both stocks carry a weight of 150 basis points in the revised basket.
The brokerage said the move is aimed at ensuring better alignment between portfolio construction and market-capitalisation classifications.
Kotak said, “We are shifting Info Edge and Swiggy to the mid-cap portfolio to align the portfolio composition with market-cap classifications.”
The brokerage clarified that the change reflects portfolio construction considerations rather than any deterioration in its underlying view on either company.
Why Kotak exits City Union Bank in large cap portfolio
Kotak removed City Union Bank from its large-cap model portfolio and redistributed the stock’s weight equally among other banking names in the basket.
The brokerage said City Union Bank has significantly outperformed both the broader market and private-sector banks over the past year. According to Kotak, the stock currently trades at around one-time one-year forward book value.
Explaining the removal, Kotak said, “We see limited scope for further re-rating in valuation multiples given the expected moderation in return on equity over FY2026-FY2029.”
The brokerage added that valuation and relative performance considerations played a key role in the decision to exit the stock from the recommended portfolio.
Why Coforge and Embassy REIT make way in the midcap portfolio
To accommodate the addition of Info Edge and Swiggy to the mid-cap portfolio, Kotak removed Coforge and Embassy REIT.
The brokerage noted that Coforge shares have appreciated about 28% since the end of March, when the stock was introduced into the model portfolio.
On Embassy REIT, Kotak said the business remains fundamentally sound but could face challenges if interest rates remain elevated for a prolonged period.
Kotak Portfolio Reshuffle: Groww & Torrent Added
Portfolio Changes at a Glance
New Large-Cap Portfolio Picks
| Stock | Weight | 12-Month Upside |
|---|---|---|
| Billionbrains Garage Ventures (Groww) | 150 bps | +19% |
| Torrent Pharmaceuticals | 150 bps | +13% |
Why Kotak Likes Them
| Groww | 19% correction from May highs created an attractive entry point. Kotak’s positive view on fundamentals remains unchanged. |
| Torrent Pharma | Coverage resumed after JB Chemicals integration. Strong fundamentals and growth outlook support inclusion. |
Moved to Mid-Cap Portfolio
| Stock | Reason |
|---|---|
| Info Edge | Market-cap classification alignment |
| Swiggy | Market-cap classification alignment |
Stocks Removed
| Stock | Reason |
|---|---|
| City Union Bank | Limited scope for further valuation re-rating |
| Coforge | Stock up ~28% since March addition |
| Embassy REIT | Higher interest rates could be a headwind |
Kotak’s Market View
Kotak remains constructive on domestic cyclicals despite West Asia tensions. The brokerage continues to favour:
- Banks & NBFCs
- Domestic growth-linked sectors
- Transportation and crude-sensitive businesses
Its base case remains that the West Asia conflict will ease over the coming weeks.
Express InfoGenIE | Financial Express
Discussing the changes, Kotak said, “While we do not see any near-term issues with Embassy REIT’s business model, a potentially higher interest-rate environment could act as a headwind.”
The brokerage said the changes are part of routine portfolio optimisation and reflect evolving risk-reward dynamics across the coverage universe.
Portfolio positioning remains tilted towards domestic cyclicals
Despite the stock-level changes, Kotak’s broader portfolio stance remains largely unchanged.
The brokerage said both the large-cap and mid-cap portfolios continue to reflect its expectation that the West Asia conflict will be resolved over the coming weeks. As a result, the portfolios retain a preference for economy-sensitive sectors such as banks and non-banking financial companies.
Kotak also continues to favour sectors that could benefit from movements in crude prices, including transportation-related businesses.
The brokerage’s large-cap portfolio remains heavily weighted towards financials, underscoring its preference for domestic growth-linked themes over more defensive positioning.
Conclusion
Kotak’s latest portfolio reshuffle signals a selective repositioning rather than a broader change in market strategy. The brokerage added Groww and Torrent Pharmaceuticals to its large-cap basket, citing attractive risk-reward and favourable growth prospects, while moving Info Edge and Swiggy to the mid-cap portfolio and removing City Union Bank, Coforge and Embassy REIT.
The changes leave Kotak’s overall market stance intact. The brokerage continues to favour domestic cyclicals and maintains its base-case view that geopolitical tensions in West Asia will ease over the coming weeks. Within that framework, Groww and Torrent Pharmaceuticals have emerged as the latest additions to its list of preferred portfolio ideas.
Disclaimer: The model portfolio reshuffles, specific stock allocations, and fair value targets discussed in this report are based on institutional equity research from Kotak Institutional Equities and do not constitute direct buy, sell, or hold recommendations for retail investors. Equity investments, model portfolios, and market capitalisation transitions are deeply sensitive to macro variables, including geopolitical tensions in West Asia, domestic interest rate trajectories, and broader market corrections. Because individual financial goals, risk thresholds, and asset allocation needs vary extensively, readers are strongly advised to consult a SEBI-registered investment advisor or a qualified financial professional before executing any fresh capital allocations or changing their investment strategies based on these brokerage forecasts.
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