Stocks to Buy for Up to 33% Return in April: Kotak Securities Recommends
Stocks to Buy
Stocks to Buy in April: Kotak Securities Picks 6 Stocks with Up to 33% Return Potential
Stocks to Buy: Kotak Securities Identifies 6 High-Potential Picks for April
Kotak Securities, in its latest report released on April 1, 2025, has identified six stocks that could yield significant returns for investors in the month of April.
Despite expressing caution about the broader market due to high valuations and potential earnings growth slowdowns, the brokerage firm sees compelling opportunities in certain sectors such as ports, healthcare, and capital goods.
The report suggests that these stocks could offer returns of up to 33% over the coming months, making them attractive options for investors looking to capitalize on sector-specific growth trends.
The brokerage also pointed out that the market’s short-term direction will largely depend on the Q4 earnings results of various companies.
These results will provide vital clues about corporate health and the macroeconomic outlook. Even with these uncertainties, Kotak Securities remains optimistic about these six stocks and believes they could significantly outperform the broader market in the short term. Let’s take a closer look at these stocks:
1. Adani Ports
Target Price: Rs 1,570 (32% Upside)
Adani Ports has emerged as one of the top recommendations by Kotak Securities, with the brokerage assigning a target price of Rs 1,570, reflecting a potential upside of 32% from its current market level.
The brokerage is optimistic about Adani Ports due to its promising growth prospects. Kotak expects the company’s earnings per share (EPS) to grow by 19.2% in FY26 and 10.9% in FY27, driven by the company’s strategic transformation into a comprehensive transport solutions provider.
Adani Ports has expanded beyond its traditional port operations and is now venturing into logistics and other related services.
This diversified business model positions the company well to benefit from the growing demand for efficient transport infrastructure in India.
The company’s ability to integrate various transportation services will likely help boost its logistics business, providing investors with strong growth potential.
2. Apollo Hospitals
Target Price: Rs 8,180 (24% Upside)
Apollo Hospitals is another stock that Kotak Securities recommends with a target price of Rs 8,180, which offers a 24% upside from the current level.
The healthcare giant has shown consistent improvements in its margins, with the company achieving seven consecutive quarters of margin growth.
This indicates strong operational efficiency and financial health. Kotak notes that the company’s strategy to expand its bed capacity may be more conservative than its competitors, but this is likely part of a calculated approach to avoid overextending itself.
Despite its cautious expansion plans, Kotak has maintained a “Buy” rating on Apollo Hospitals, highlighting its leadership in the Indian healthcare sector.
However, the brokerage expressed some concerns over Apollo 24/7, the company’s online healthcare platform, which has not yet shown significant growth.
While the traditional hospital business remains strong, investors should monitor the performance of Apollo 24/7 in the coming quarters.
3. Cummins India
Target Price: Rs 3,700 (21% Upside)
Cummins India, a leader in power generation and industrial equipment, is another top pick from Kotak Securities.
The brokerage has set a target price of Rs 3,700, suggesting a 21% upside potential from current levels. Kotak sees the company as well-positioned due to its strong execution capabilities, competitive advantages, and the favorable regulatory environment surrounding the CPCB-IV emissions standards.
Cummins India’s robust product portfolio and established market leadership in engines and power systems provide it with a solid foundation for continued growth.
However, Kotak reduced its target price slightly from Rs 3,800 to Rs 3,700, citing weaker export demand and a reduction in gross margins.
The company’s ability to adapt to regulatory changes and manage its cost structure will be crucial in driving future performance.
While there may be short-term challenges, Kotak remains confident in the company’s medium-term prospects.
4. Piramal Pharma
Target Price: Rs 300 (33% Upside)
Piramal Pharma is a standout pick from Kotak Securities, with a target price of Rs 300, indicating a potential upside of 33%.
The brokerage is particularly bullish on Piramal Pharma’s focus on innovation, which it believes will drive significant earnings growth in the coming years.
Kotak projects a massive 375.1% growth in EPS for FY26 and a more modest 119% growth for FY27, driven by the company’s differentiated products and expanding portfolio.
Despite this optimistic growth outlook, Kotak highlighted some risks associated with Piramal Pharma, such as its high levels of debt and its dependence on a limited number of products.
Additionally, the integration of mergers and acquisitions (M&A) poses execution risks. These factors could create some volatility in the company’s performance, so investors should carefully consider these risks before investing.
Nevertheless, Kotak views Piramal Pharma as a strong growth story in the pharmaceutical sector.
5. Union Bank of India
Target Price: Rs 155 (23% Upside)
Union Bank of India is another stock that Kotak Securities recommends with an upside potential of 23%. The brokerage set a target price of Rs 155 for the stock, noting that the bank’s asset quality remains robust.
While the bank may face some near-term headwinds in terms of net interest margin (NIM) and business growth, Kotak believes the bank’s strong fundamentals and attractive valuation present an appealing opportunity for long-term investors.
Union Bank has shown steady growth over the past few years and has maintained a strong capital position, which gives it a cushion to weather any economic downturns.
Kotak sees significant upside potential in Union Bank, especially considering its current valuation, which is relatively low compared to its peers. This makes the stock an attractive buy for investors seeking value in the banking sector.
6. Amber Enterprises
Target Price: Rs 7,800 (9% Upside)
Amber Enterprises, a leading manufacturer of room air conditioners (ACs), rounds out the list of recommended stocks with a target price of Rs 7,800, reflecting a 9% upside.
Kotak Securities sees growth in Amber Enterprises driven by the anticipated rise in demand for room ACs due to higher-than-normal temperatures expected this summer.
The company’s revenue is expected to grow at a compound annual growth rate (CAGR) of 27% from FY24 to FY27, primarily driven by growth in components, electronics, and sidewall segments.
Additionally, Kotak expects Amber to achieve strong EPS growth of 72% and earnings growth of 26.5% in FY26. With the summer season expected to drive higher demand for cooling solutions,
Amber Enterprises stands to benefit significantly from this seasonal demand surge. The company’s strong market position in the AC components industry positions it for continued growth in the medium term.
Final Remarks:
Despite the cautious outlook for the broader market in April, Kotak Securities has identified six stocks with strong growth potential, making them attractive picks for investors in the coming month.
These stocks, which span sectors such as ports, healthcare, capital goods, and pharmaceuticals, offer a diverse set of opportunities for investors looking to navigate current market volatility.
With expected returns of up to 33%, these stocks could deliver significant value to investors who are willing to embrace sector-specific opportunities.
As always, investors should conduct thorough research and consider their own risk tolerance and investment goals before making decisions.
While these stocks show strong growth potential, it’s important to stay informed about market conditions and corporate earnings results, which will ultimately determine the direction of the market in the short term.
