Coforge To Zomato: These Are Investors' Top Stock Picks In India, Says JPMorgan

JPMorgan recently met with 35 investors in India and 40 in Singapore as part of a marketing initiative. Research on investor interest in technology, media and telecom space indicates a preference for mid-cap information technology and engineering, research and development space, it said.

While a possible tariff hike might support Bharti Airtel Ltd. in deleveraging, Zomato Ltd. was a preferred internet name even as concerns around quick commerce still hang.

Here are some of the sectors that investors have shown keen interest in, according to the brokerage:

The upcoming US elections were a common concern for the next six months for the IT sector. Indian investors showed more pessimism towards the sector than foreign investors.

Mid-cap IT and ER&D companies were favoured, with Coforge Ltd. emerging as one of the top preferences, thanks to the sharp correction in its share price till date. The stock was down 20% year-to-date and has underperformed the Nifty IT by more than 5% for the same period.

In the ER&D space, Persistent Systems Ltd. had a consensus 'buy' rating due to expectations of revenue outperformance in FY25.

Cyient Ltd.'s FY25 guidance disappointed most investors, according to the JPMorgan note. L&T Technology Services Ltd. is expected to revise its FY25 guidance, given its strong exit and three large deal wins. The stock, however, was still found to be expensive.

In the large-cap space, Infosys Ltd. was the only preferred pick. Tech Mahindra Ltd.’s possible miss on high margin expectations for FY25 might derail the narrative for the company. While for LTIMindtree Ltd., concerns were centred around potential leadership succession.