Capital expenditure cycles are turning. Indian Oil Corporation, GE Vernova T&D, and Garware Films have emerged as the premier portfolio bets for Samvat 2083, according to Paisasmart Co-founder Dipan Mehta. Mehta unveiled his tactical allocation strategy during a special Muhurat trading session address, pitching deep value and heavy industrial expansion over crowded financial trades.
Large private lenders face an immediate downgrade in his tactical playbook. Mehta advised trimming exposure to blue-chip names—including HDFC Bank, ICICI Bank, Axis Bank, and IndusInd Bank—on every technical bounce. Software services also earned an outright avoid rating. Money belongs elsewhere.
Consider Indian Oil Corporation. The state-run refiner trades below book value while completing massive capital outlays set to wind down within three to four months. A 15-million-ton processing capacity and a large petrochemical complex will soon come on stream, followed by brownfield expansions slated for the second quarter of financial year 2027. IOC offers a 10-year average return of 12% alongside a steady 6% dividend yield. "These things, once they start to scale up over the next two years, can move Indian Oil to a different growth trajectory," Mehta said.
GE Vernova T&D anchors the capital goods allocation. Mehta defended the stock’s steep valuation multiple of 60 times earnings, pointing to dominant global leadership in high-voltage direct current (HVDC) transmission hardware. An export-heavy book and anticipated net profit expansion of 20% to 30% justify the premium, he noted. Garware Films completes the trio, backed by high earnings visibility and an operational tie-up with Lubrizol for backward integration into paint protection films—a product gaining rapid adoption across modern automobiles and architectural sun-control glass.
The broader financial sector call requires granular discrimination. While selling tier-one private banks into rallies, Mehta is rotating liquidity into midsized lenders like IDFC First Bank and AU Small Finance Bank, alongside multi-product non-banking financial companies including Bajaj Finance, L&T Finance, and Cholamandalam. Lending tech player Moneyview also drew praise for clocking 30% to 40% growth while retaining only 30% of origination on its balance sheet. "The way the lending industry is moving, the one who owns the customer will be the winner," Mehta explained, emphasizing distribution leverage.
In metals, Mehta tagged copper as the single high-conviction play on grid electrification, picking state-run miner Hindustan Copper as it expands pit capacity. Consumer appliances present a direct divergence: LG Electronics India stands as the preferred alternative over Voltas and Blue Star due to its export engine. Voltas faces headwinds after institutional brokerage Motilal Oswal slashed its earnings per share estimates by 8% to 11% for financial years 2027 and 2028, capping its target price at ₹1,000 following weak operational numbers.
Energy transition plays demand strict selectivity. Within cables and wires, KEI Industries and Polycab remain top picks over Finolex Cables. In solar hardware, Waaree Energies and Fuji MR maintain operational momentum via rooftop distribution, even after Waaree shares slumped nearly 31% amid scrutiny over toxic waste disposal.