Dharmesh Kant backs largecaps, defence, metals
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- Dharmesh Kant warned that near‑term market corrections of 4–7% cannot be ruled out, but the broader outlook remains constructive.
- Dharmesh Kant said large‑cap stocks, especially in infrastructure and banking, offer better risk‑reward than mid‑ and small‑caps.
- Dharmesh Kant highlighted Larsen & Toubro as a top infrastructure pick, citing stalled projects resuming and strong order inflows.
- Dharmesh Kant pointed to strong credit growth in banking, noting near‑term NPA concerns but saying valuations already reflect the risk.
- Dharmesh Kant identified defence firms Bharat Electronics (BEL) and Hindustan Aeronautics (HAL) as delivering strong operational performance and healthy order books, urging a long‑term view.
- Dharmesh Kant estimated earnings growth could be hit by 2–3 percentage points but should stabilise, with forward P/E around 17×, and recommended staggered buying of high‑quality stocks over a 9–12‑month horizon.
Why it matters: Investors who shift into the highlighted large‑cap infrastructure, banking, defence and metal stocks stand to benefit from improving earnings outlook and modestly priced valuations, while mid‑ and small‑cap stocks may lag as risk‑reward ratios remain less favorable. The strategy also cushions portfolios against near‑term volatility, as Kant notes that worst‑case scenarios are already priced in.
