Hemang Jani’s Stock Picks: Positive on Vedanta, cautious on Jio Fin & Vodafone Idea
1/8
Market Structure & Triggers
In an interview with ET Now, Hemang Jani said that the markets are undergoing a healthy time correction rather than showing signs of a breakdown. He emphasized that the fundamental structure remains strong, supported by a robust earnings outlook over the next two to three quarters. Regulatory developments are also favorable, and fund flows remain encouraging. While geopolitical tensions and a slight rise in crude oil prices create temporary uncertainty, he expects stability to return soon, making this pause nothing to worry about
2/8
Sector Rotation & FMCG Outlook
According to Jani, the market is currently in a clear phase of sector rotation. Banking and NBFCs had been leading the rally but have taken a breather following the RBI’s policy decision. He remains optimistic about select discretionary and retail sectors in the near term. However, he expresses caution on FMCG stocks due to high valuations and a lack of compelling growth triggers. In contrast, he sees strong upside potential in the cement sector, supported by expected improvements in margins and earnings over the next one to two years
3/8
Retail Sector – Trent & DMart
Jani is bullish on Trent, highlighting its leadership in the discretionary retail space. Despite broader market sluggishness, Trent has performed well, thanks to innovative formats like Zudio and strong execution, which continues to attract investor interest. On the other hand, while DMart has shown signs of recovery, he believes its valuations are stretched given the 16–18% growth it currently offers. He also flags rising competition from quick commerce players, which could cap DMart’s long-term potential
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4/8
Pharma & Laurus Labs
Pharma stocks are making a comeback, and Laurus Labs stands out for its margin recovery and improved API performance in both pricing and volume. After a period of underperformance, Laurus is now better positioned for growth, with several launches ahead. Divi’s Labs is another preferred pick due to its contract manufacturing strength and recent capacity expansions. While recent concerns over pharma tariffs may trigger short-term volatility, Jani does not expect material long-term impact on the sector
5/8
Auto
The auto sector is expected to perform selectively well, especially on the back of improved rural sentiment and festive season tailwinds. Jani anticipates a better growth environment, particularly for companies with strong rural linkages. He favors Mahindra & Mahindra for its 20–21% growth prospects and notes that Bajaj Auto, after a sharp correction, is stabilizing thanks to robust EV sales and strong exports. TVS is also among his preferred two-wheeler picks, though he cautions that growth may be uneven across the sector due to the high base effect
6/8
Metals & Vedanta
Jani is highly optimistic about the metals sector, citing favorable trends in global base metal prices. Companies like Vedanta are particularly well-positioned due to their diversified exposure across oil, aluminium, copper, zinc, and silver. However, he warns of possible temporary pullbacks due to OFS (offer for sale) activity in some stocks. Over a 6–12 month horizon, he maintains a bullish outlook on both Vedanta and Hindalco, the latter having consistently delivered strong performance
7/8
Telecom – Bharti vs Vodafone Idea
In the telecom space, Jani clearly favors Bharti Airtel over Vodafone Idea. Bharti continues to outperform on key metrics such as ARPU growth, EBITDA margins, and overall profitability. He considers it the best digital telecom play in the market. In contrast, Vodafone Idea remains burdened by weak fundamentals, ongoing market share erosion, and a fragile balance sheet. Despite periodic investor enthusiasm around fundraising or AGR relief, Jani views it as a value trap
8/8
Jio Financial – Wait & Watch
Jani acknowledged the positive developments around Jio Financial, particularly its acquisition of SBI’s stake in Jio Payments Bank. However, he remains cautious due to valuation concerns and the highly competitive nature of the financial services sector. He advises against investing solely on the strength of the promoter group and stresses the importance of visible earnings growth. For now, he prefers a wait-and-watch approach over the next few quarters