InCred Equities has updated its longest conviction list with the addition of Thyrocare Technologies, while removing Pidilite Industries, Marico, and SBI Cards. On the technical side, the firm maintained a positive outlook on Adani Ports and Special Economic Zone, Maruti Suzuki, and Petronet LNG.
The addition of Thyrocare Technologies is backed by improving fundamentals. Analysts highlighted that the company is benefiting from a 15 percent expansion in its network, a revised incentive structure for its franchise model, and a turnaround in the radiology business, all of which are contributing to stronger earnings visibility.
On the other hand, the team exited Pidilite Industries as recent channel checks point to a moderation in demand growth. Marico was also removed from the list due to growing margin pressures stemming from rising copra prices, alongside concerns related to the company’s diversification strategy. In the case of SBI Cards, the decision to pare exposure came as analysts believe the stock now reflects most of the downside, with early signs of stabilisation in market share and easing credit costs.
From a sector allocation standpoint, InCred continued to remain overweight on aluminium, capital goods, financial services, oil and gas, and pharmaceuticals. The firm holds a neutral stance on automobiles, auto ancillaries, consumer staples, infrastructure, and IT services, while remaining underweight on agri-business, aviation, building materials, chemicals, and metals and mining.
Looking ahead, InCred analysts noted that domestic macroeconomic indicators displayed a mixed trend in April 2025. Goods and Services Tax (GST) collections grew by 12.6 percent year-on-year, diesel consumption increased by 4 percent, while electricity demand recorded a modest rise of 2.3 percent.
Both official and private meteorological agencies are forecasting normal to above-normal rainfall during the upcoming southwest monsoon season, which is a positive development for the agriculture sector and is expected to support rural consumption, particularly ahead of the kharif sowing period.
In the currency markets, analysts observed that strong foreign portfolio investment (FPI) inflows were the primary driver behind the appreciation of the Indian rupee (INR) in April 2025. This was further supported by a weakening US dollar and a decline in Brent crude oil prices. These favourable external conditions are expected to support further strengthening of the INR in the near term.
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