Kotak adds ITC to large-cap model portfolio, trims Apollo Hospitals and ICICI Bank
Kotak Institutional Equities added ITC at a 1.5% weight to its large-cap model portfolio, citing attractive valuations. It reduced weights in Apollo Hospitals, Eternal and ICICI Bank, while adding Goa Agro, Mankind Pharma and Narayana Hrudayalaya to its midcap list.
What happened
Kotak Institutional Equities added ITC to its large-cap model portfolio at 1.5%, citing attractive valuations. It reduced Apollo Hospitals, Eternal and ICICI
Key facts
- ITC added to Kotak's large-cap portfolio at 1.5% weight
- Apollo Hospitals weight reduced to 3.3%
- Eternal weight reduced to 3.6%
- ICICI Bank weight reduced to 9.9%
- ITC tobacco business valued at 10.4x one-year forward EPS
What changed
Kotak Institutional Equities added ITC to its large-cap model portfolio at 1.5%, citing attractive valuations. It reduced Apollo Hospitals, Eternal and ICICI Bank weights, while adding Goa Agro, Mankind Pharma and Narayana Hrudayalaya to its midcap portfolio.
Why this matters
Kotak’s 1.5% ITC addition signals improving institutional confidence in the company’s valuation, while trims to healthcare and banking peers suggest a relative rotation in large-cap preferences.
What to watch
- ITC quarterly FMCG revenue growth, EBITDA-margin progression, cigarette volume/pricing and dividend or buyback commentary.
- Any tobacco-tax, GST or regulatory announcements affecting cigarette economics.
- Changes in Kotak's or other brokerages' target prices, ratings and model-portfolio weights for ITC, Apollo Hospitals and ICICI Bank.
- Foreign and domestic institutional ownership trends and delivery-volume spikes following the portfolio update.
- Apollo Hospitals' margin guidance and capex plans; ICICI Bank deposit growth, NIM and asset-quality disclosures.