Fund House Recommendations – September 15, 2025

Alcobev Sector – Structural Premiumisation Play

• Radico Khaitan (Jefferies: Buy, TP ₹3,500)
Premiumisation in IMFL portfolio and consistent market share gains position Radico as a long-term compounding story.

VRIGHT View: Beneficiary of premium liquor demand, especially in Tier-1/Tier-2 cities. Monitor input cost trends in ENA for margin resilience.

• Allied Blenders & Distillers (Jefferies: Buy, TP ₹620)

Strong brand recall (Officer’s Choice) and expansion into premium segments driving re-rating potential.

VRIGHT View: Turnaround hinges on premiumisation mix; near-term earnings linked to excise duty structures.

• United Spirits (Jefferies: Buy, TP ₹1,570)

Strong premium portfolio (McDowell’s, Johnnie Walker) and efficiency programs expected to deliver margin upside.

VRIGHT View: Global parent Diageo’s backing adds credibility; watch for excise policy changes across key states.

Auto & EVs – Demand Momentum & Margin Leverage

• Maruti Suzuki (HSBC: Buy, TP ₹17,000)

Robust SUV pipeline and export traction underpin volume growth; margins supported by softening commodity prices.

VRIGHT View: Strong rural demand cycle and festive season tailwinds could accelerate FY26 earnings visibility.

• Hyundai Motor India (HSBC: Buy, TP ₹2,800)

Aggressive EV push and leadership in SUV category keeps growth intact.

VRIGHT View: IPO speculation remains a medium-term re-rating trigger; supply chain localisation key to watch.

• TVS Motor (HSBC: Buy, TP ₹4,000)

EV scooter ramp-up and export growth strengthen long-term narrative.

VRIGHT View: Execution on EV profitability path is crucial; valuations
factoring strong growth but still reasonable vs peers.

• Mahindra & Mahindra (HSBC: Buy, TP ₹4,000)

Strong SUV order book, farm mechanisation growth, and EV capex plans support outlook.

VRIGHT View: Tractor cycle moderation is a risk; however, SUV leadership provides cushion.

• Ather Energy (HSBC: Buy, TP ₹600)

Improving unit economics and government incentives aid scaling.

VRIGHT View: Still early-stage; key monitorable is fundraising progress and EV policy continuity.

Financials & Specialty Finance

• Northern Arc Capital (DAM: Buy, TP ₹335)

Diversified lending model in MSME and retail credit with strong risk management practices.

VRIGHT View: Rising investor interest in specialty NBFCs positions Northern Arc as a niche play in financial inclusion.

Cement & Materials

• Samvardhana Motherson (CLSA: Outperform, TP ₹124)
Benefiting from auto demand recovery and global supply chain diversification.

VRIGHT View: Currency fluctuations and global OEM demand cycles remain near-term sensitivities.

Takeaways:

Across these calls, three key investment themes emerge for September 2025:

1. Premiumisation (Alcobev, Autos) – companies moving up the value chain are preferred.

2. EV Transition (TVS, M&M, Hyundai, Ather) – global & domestic funds remain overweight.

3. Specialty Finance (Northern Arc) – niche lenders with diversified books are gaining fund manager attention.