LKP Securities' reform-led bets: L&T Fin, PNG Jewellers, BEL, and 5 others

India’s economy continues to outpace peers, combining rapid growth with disinflation to create a supportive backdrop for equities, and has set the stage for targeted investment opportunities, according to LKP Securities.

 

Gross Domestic Product (GDP) growth is among the fastest in Asia (around 9 per cent in FY22–FY24), and domestic demand remains resilient across categories. At the same time, consumer inflation has eased to about 1.5 per cent (July 2025) – a multi-year low.

 

Additionally, pro-growth policy measures such as the government’s proposed goods and services tax (GST) rationalisation are expected to aid consumption and partially offset the US tariffs' impact on select Indian exports (textiles, chemicals, pharma, gems and jewellery), believes LKP Securities. 

 

On this backdrop, LKP believes specific themes will fare well for investors:

Consumer cyclicals: A rotation into consumption-sensitive sectors is likely. Leading players in autos, home electronics, consumer products, and retail should benefit as demand and affordability rise.

 

Disinflation plays: Companies with high material or tax inputs – such as packaged foods, cement, auto parts, and certain services – will enjoy margin tailwinds as inflation cools and GST cuts take effect.

 

Domestic manufacturing & logistics: Tariff-induced disruptions favour local suppliers. LKP sees opportunity in industrial and materials firms (engineering, chemicals) refocusing on new markets, and in logistics/port operators handling shifted trade flows.

 

Infrastructure & financials: Policy support (GST savings and likely higher capex) will stimulate construction and investment. Banks, NBFCs, and insurers should see increased lending and lower funding costs, supported by a credit-rating upgrade.

 

Defense: Reliable and impeccable performance of Indian weapon systems in Operation Sindoor, boosting confidence in the Indian Military Complex, shall develop and manufacture state of the art systems in India for India.

Stock-specific picks by LKP Securities:

Belrise Industries | Buy | Target: ₹ 192

LKP has initiated ‘Buy’ on Belrise Industries stock. According to the brokerage, the company is poised for growth by expanding original equipment manufacturing (OEM) ties, launching new products, and boosting commercial passenger vehicle (CPV) sales through premiumisation.

Bharat Electronics (BEL) | Buy | Target: ₹468

The company is a prime beneficiary of indigenisation and geopolitical trends, LKP noted. With a strong order backlog, growing exports, and non-defense traction, BEL share is set for near-term sales growth and medium-term expansion from pipeline orders, with operating leverage supporting margins. 

City Union Bank | Buy | ₹248 

City Union Bank (CUB) has regained momentum in FY25 with 14 per cent year-on-year (Y-o-Y) business growth, aided by digital upgrades and tighter lending, according to LKP’s analysis. 

Electronics Mart India | Buy | Target: ₹182 

Electronics Mart India (EMIL) has established itself as a leading South India retailer, while expanding in Delhi-NCR, operating 208 stores across 86 cities as of Q1FY26. Backed by favorable government measures, operational excellence, and a differentiated retail strategy, EMIL is well-positioned to capture market share, reckons LKP. 

Epack Durables | Buy | Target: ₹443

Even though the company’s Q1FY26 was soft due to unseasonal rains and elevated channel inventory, LKP remains constructive on the Epack Durable's’s long-term trajectory as strategic initiatives in client diversification, backward integration, and category expansion gain traction. 

L&T Finance | Buy | Target: ₹286

The brokerage believes the L&T Finance is well-positioned to benefit from the turnaround cycle in the MFI segment, supported by stricter underwriting standards, improved collection efficiency, and favorable policy tailwinds.

Mrs. Bector's Food Specialities 

LKP Securities remains positive on the long-term growth story of the company, though near-term challenges from GST-led de-stocking and US export tariffs may weigh on performance.

PNG Jewellers | Buy | ₹785 

Strong festive traction, premiumisation, omni-channel growth, and the LiteStyle strategy underpin sustained double-digit revenue growth and margin expansion for PNG Jewellers in FY26 and beyond, according to LKP. The brokerage has initiated coverage with a ‘Buy’.