Sunny Agrawal backs picks in banking, pharma, power
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- Sunny Agrawal advises investors with a 12‑18‑month horizon to focus on midcap and smallcap stocks that can deliver mid‑teen or higher double‑digit earnings growth through FY27‑FY28.
- Nifty 50 is trading at 17‑18× one‑year forward earnings, below its 10‑year average relative to MSCI Emerging Markets.
- Private‑sector banks (HDFC Bank, ICICI Bank, Axis Bank) are Agrawal’s top large‑cap pick, with net‑interest‑margin stabilization and 13‑14% credit growth expected, promising 12‑14% returns over two years.
- Auto ancillaries such as Lumax, Minda Corp and Gabriel are favored over automakers, projected to achieve 15‑16% earnings CAGR over the next two to three years.
- Pharma CDMO firms—Anthem Biosciences, Sai Life Sciences, Sudeep Pharma and Lupin—are highlighted as the longest runway, while Shaily Engineering and Plastics is recommended for exposure to the GLP‑1 market without tying to a single drug maker.
- Infrastructure power ancillaries (GE Vernova T&D, TD Power Systems, Polycab) are identified as the clearest opportunity, with L&T cited as a balanced infrastructure play.
- Volatility is expected to persist for two to three months due to geopolitical tensions, but Agrawal argues that quality stocks bought now should deliver solid double‑digit compounded returns by FY27.
Why it matters: Investors who act on Agrawal’s recommendations can lock in 12‑14% returns from private‑sector banks and 15‑16% earnings growth in auto ancillaries, while the Nifty’s low forward‑earnings multiple signals cheaper valuations compared with its 10‑year average, offering a path to double‑digit gains by FY27.
