HDFC Securities, a leading brokerage firm, has unveiled a 25-stock model portfolio designed for investors with a three-to-five-year horizon. The portfolio aims to balance growth and diversification, covering key sectors like BFSI, consumer businesses, infrastructure, manufacturing, digital, and renewable energy.

Key Highlights of the Portfolio

The "25 Transformative Investment Ideas" report includes:

• 13 Largecap Stocks: Reliance Industries, SBI, L&T, Maruti Suzuki, NTPC, Powergrid, DMart, Chola Finance, United Spirits, Torrent Pharma, Apollo Hospitals, and Marico.

• 12 Mid & Smallcap Stocks: ICICI Lombard, InfoEdge, Motherson, Jindal Steel, Cummins India, Prestige Estate, MCX India, Amber Enterprises, Navin Fluorine, Century Ply, Sobha, and JK Lakshmi Cement.

Varun Lohchab, Head of Institutional Research at HDFC Securities, explains that this portfolio solves two common investor problems:

1. Over-concentration in a few high-risk stocks

2. Scattered investments across too many stocks, diluting returns

Sector Allocation & Growth Potential

• ~20% in Consumer Businesses (DMart, United Spirits, Marico)

• ~16% in BFSI (SBI, Chola Finance, ICICI Lombard)

• Remaining in Infrastructure, Manufacturing, Digital, and Renewable Energy

The portfolio is expected to deliver ~31% CAGR earnings growth, nearly three times the Nifty’s projected growth. While these stocks trade at a higher P/E (35x vs Nifty’s 20x), the growth justifies the premium.

Why This Portfolio Works for Long-Term Investors

• Strong alignment with India’s economic themes (infrastructure, digital adoption, clean energy)

• Midcap picks with high earnings momentum (Sobha, MCX, Navin Fluorine, Century Ply)

• Largecaps at attractive valuations (Reliance, SBI, L&T after underperformance)

FPI Selling Cycle Nearing Its End

Dhiraj Relli, MD of HDFC Securities, believes FPI outflows may soon reverse. Historically, except during the 2008 crisis, FPIs haven’t sold heavily for more than two consecutive quarters.

India’s Resilient Economic Outlook

Despite global uncertainties, India’s fundamentals remain strong, supporting long-term growth. FY26 is expected to see improving macros, earnings, and capital flows.

The Upcoming IPOs in this week and coming weeks are Ather Energy, Iware Supplychain Services, Arunaya Organics,Kenrik Industries.

The Current active IPO are Tankup Engineers.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

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