Amit Gupta highlights stocks that could benefit from market recovery

what happened

CNBC-TV18 reported that Amit Gupta, director and head of equities at Motilal Oswal Private Wealth, is focusing on companies where operating conditions are improving but share prices have not yet reflected the change. His selections include One97 Communications, auto-component maker Jamna Auto and Karur Vysya Bank.

Gupta estimated that a possible merchant discount rate, or MDR, on UPI transactions could add around ₹600 crore to One97 Communications’ EBITDA, on top of roughly ₹1,000 crore from its existing business. The estimate includes about ₹400 crore from merchant transactions and ₹200 crore from consumer transactions. The potential increase could lift EBITDA by nearly 60% versus expectations, although it depends on the introduction of charges and the assumptions used. Gupta believes UPI’s broad adoption would limit any decline in transaction volumes.

Jamna Auto’s share price has been largely unchanged for three to four years, Gupta said, but a commercial-vehicle recovery could create a new growth catalyst. Commercial-vehicle numbers have recently increased 39% year on year. Gupta estimates that Jamna Auto has around 85% of the parabolic-spring market, while a potential free-trade agreement with Europe in financial year 2027 could provide additional support through its links with Volvo and Daimler. The stock is trading at about 18 times FY28 earnings.

Among southern lenders, Gupta favours selected mid-sized banks, including Karur Vysya Bank. He cited its roughly 20% RoE and 0.7% GNPA ratio, compared with 14–15% and 1.74%, respectively, at Federal Bank. Following the correction, the Nifty was trading below 19 times earnings under a 5% growth assumption for financial years 2027 and 2028, and near 17 times at 10% growth. Gupta also identified pharmaceuticals as an area to watch: Indian market value growth was nearly 13.5%, volume growth 3.5%, and cardiac-drug volume growth 9.5%.

why it matters

The correction has improved market valuations, but further rupee depreciation and nearly ₹40,000 crore of foreign institutional investor selling in October remain risks. The outlook for individual shares depends on demand recovery, asset quality and regulatory outcomes.

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