Kotak Securities is bullish on Samvat 2080. According to the brokerage, largecap stocks offer better risk-reward given their more reasonable valuations compared to the lofty valuations in the broader markets. At current levels, Kotak Securities finds the Nifty valuations to be more reasonable considering the moderate earnings growth and muted performance over the past two years.

Based on this assessment, the brokerage has identified eight stock picks for the new Samvat, which will be a mix of both largecap stocks and those from the broader markets. It believes that the recent correction can be used to add quality stocks with attractive valuations from a long-term investment perspective. Here are the eight stocks.

The outlook for each of Reliance Industries' key segment remains robust, according to Kotak Securities. The brokerage further said that focus will now shift to 5G modernisation, given the rollout is nearing completion. It is also anticipating a tariff hike to come soon courtesy of a rising subscriber base and consumer engagement. Reported net debt was also down by nearly ₹9,000 crore from the June quarter. The brokerage has recommended a "buy" rating on the stock with a price target of ₹2,725.

Kotak Securities believes that Canara Bank reported healthy loan growth of 12% with continued improvement in its asset quality. The lender's RoE has also improved over the last few quarters due to declining credit costs. Additionally, it is trading at a discount to its other PSU banking peers. It has maintained its buy rating on the stock with a price target of ₹425 until the next Diwali.

Kotak Securities said that Cipla delivered a strong performance for the third quarter in a row during the July-September period. It expects Cipla to post a robust 20% Earnings Per Share (EPS) Compounded Annual Growth Rate over financial year 2023-2026 despite the regulatory setbacks. It likes Cipla's focus on domestic, US generics and strong delivery of cost efficiencies. Any potential stake sale by the promoter remains a key monitorable, said the brokerage. It has raised its US sales and margin assumption, leading to a 1-3% upgrade in its financial year 2024-2026 EPS. It has raised its price target on the stock to ₹1,320 from ₹1,290 earlier, while reiterating its "Add" rating.

Cyient is expecting sustained demand in aerospace, sustainability and automotive division, said the brokerage. The order intake during the September quarter increased by 40% year-on-year to September quarter. Cyient will continue to return 50% of net profit as dividend. Kotak Securities termed the company's valuation as attractive. The firm has reiterated its buy rating with a price target of ₹2,000 until next Diwali.

Dalmia Bharat is likely to see strong growth led by a combination of organic and inorganic expansions over financial year 2023-2026, according to Kotak Securities. The company's key markets have seen a strong price hikes which should result in strong margin expansion in the second half of the current financial year. Kotak Securities is expecting EBITDA per tonne of ₹1,135 and ₹1,250 for financial year 2024 and 2025, compared to ₹955 from the September quarter. It has a price target of ₹2,350 with an "Add" rating until next Diwali.

GCPL's turnaround initiatives have started to yield results, partly aided by favourable externalities, Kotak Securities said. It has also retained its high-teen EBITDA growth guidance for the current financial year. It also believes that there are more measures are needed to ensure sustainable growth. Kotak Securities has maintained its "Add" rating on the stock with a price target of ₹1,135.

Kotak Securities believes that Macrotech Developers is well placed to gain further market share with its diversified geographical presence. It added that the development and monetisation of the land at Palava is encouraging. The company also expects to maintain a Compounded Annual Growth Rate of 20% in pre-sales over financial year 2023 and 2026. Kotak Securities has maintained its "Add" rating on the stock with a price target of ₹840 until next Diwali.

PCBL, earlier known asPhilips Carbon Black, reported its highest ever volumes during the September quarter. There is traction in demand for specialty black with new customer additions and new product grades, according to Kotak Securities, who also believes that higher specialty black sales will provide stability and support margins. The company also recently commissioned the final phase of its 1.47 lakh MTPA Chennai Facility. It also secured two patents for Oxidized grade carbon black and surface modified carbon black. Its management has guided for a CAGR between 12% and 13% over the next five to six years. Kotak Securities has upgraded its rating on the stock to "buy" from the earlier rating of "Add" and also raised its price target higher to ₹260 from ₹179 earlier.