Kotak Adds 5 Midcap Stocks to Model Portfolio After Up To 16% Monthly Fall
Prajwal / 31 Oct 2026 / Categories: Mindshare, Trending
Kotak Institutional Equities added five midcap stocks to its model portfolio after monthly declines of 6 per cent to 16 per cent amid market volatility and earnings concerns.
Indian equity markets have witnessed a sharp correction amid elevated crude oil prices, geopolitical tensions and concerns over corporate earnings. Against this backdrop, Kotak Institutional Equities has added five midcap stocks to its model portfolio, according to its strategy report dated October 26, 2026. The latest additions include companies from the healthcare, electronics manufacturing, pharmaceutical, auto components and digital services sectors. These stocks have declined between 6 per cent and 16 per cent over the past month.
The five stocks added to the model portfolio are Aster DM Quality Care, Dixon Technologies, Emcure Pharmaceuticals, Endurance Technologies and Indegene. Their respective one-month share price declines and forward valuation multiples are as follows:
| Company | One-Month Fall | Forward Valuation |
|---|---|---|
| Aster DM Quality Care | 15 per cent | 25x EV/EBITDA |
| Dixon Technologies | 16 per cent | 42x P/E |
| Emcure Pharmaceuticals | 9 per cent | 26x P/E |
| Endurance Technologies | 15 per cent | 26x P/E |
| Indegene | 6 per cent | 23x P/E |
The valuation multiples and share price declines are rounded figures reported in Kotak's strategy report dated October 26, 2026. The additions reflect changes in portfolio composition following the recent market correction. However, a decline in share prices does not necessarily indicate an improvement in a company's underlying business performance.
Aster DM Quality Care (NSE: ASTERDM | BSE: 540975) has declined around 15 per cent over the past month amid concerns about possible government intervention in the pricing of hospital medicines and consumables. The healthcare company operates hospitals across India, covering a wide range of medical specialties. Its forward valuation stands at approximately 25x EV/EBITDA.
Dixon Technologies (NSE: DIXON | BSE: 540699) witnessed a sharper correction of around 16 per cent during the same period, taking its forward valuation to approximately 42x P/E. The company manufactures a wide range of electronic products, including mobile phones, consumer electronics and home appliances. Notably, Dixon Technologies was removed from Kotak's model portfolio in July 2026 but has now been added again following the recent correction.
Emcure Pharmaceuticals (NSE: EMCURE | BSE: 544210) declined approximately 9 per cent over the past month amid concerns about possible price controls on medicines. The pharmaceutical company manufactures and markets drugs across several therapeutic areas. Its forward valuation stands at around 26x P/E.
Endurance Technologies (NSE: ENDURANCE | BSE: 540153) has fallen approximately 15 per cent over the past month and 23 per cent over the past year. The auto components manufacturer produces transmission products, suspension components, aluminium castings and braking systems. It supplies components to two-wheeler and four-wheeler manufacturers across domestic and international markets. The stock is currently valued at approximately 26x forward earnings.
Indegene (NSE: INDGN | BSE: 544172) recorded a relatively modest decline of around 6 per cent over the past month, with a forward valuation of approximately 23x P/E. The company provides technology services, commercialisation solutions and digital transformation services to pharmaceutical and biotechnology companies globally.
The portfolio rebalancing also involved changes to Kotak's Large-Cap allocation. Bajaj Finserv replaced Bajaj Finance, while Mankind Pharma was shifted from the midcap category to the large-cap category. The portfolio also saw an increased allocation to Reliance Industries and reduced positions in certain Banking, insurance and IT companies.
These changes represent adjustments to Kotak's model portfolio and do not necessarily indicate actual purchases or sales of shares. The latest additions come amid pressure on Indian equities due to elevated crude oil prices, geopolitical uncertainty and concerns about corporate earnings growth.
Going forward, the performance of midcap stocks is likely to remain influenced by Q2FY27 earnings, movements in crude oil prices, geopolitical developments and corporate profitability. Although the recent correction has brought down valuations across several companies, their future performance will depend on earnings delivery, underlying business fundamentals and broader market conditions.
Disclaimer: The article is for informational purposes only and not investment advice.