RIL, PVR Inox & Dixon Tech: Kotak upgrades these 3 stocks; check latest views & targets

Following the recent route in the Indian stock markets, domestic brokerage firm Kotak Institutional Equities has upgraded as much as three renowned stocks. The list of recent upgrades includes the likes of Reliance Industries Ltd (RIL), PVR Inox and Dixon Technologies (India) Ltd and the brokerage firm sees up to 23 per cent upside potential in these counters. Here's what Kotak as say on these three counters:

Dixon Technologies | Previous rating: Sell | Revised Rating: Reduce | Fair Value: Rs 14,770

Dixon Tech’s entry into display fabrication with ISM subsidy can help the company vertically integrate a key component used across multiple segments. However, our analysis of the global display market indicates that it is a low growth industry with technology disruptions and heightened competitive pressure from Chinese players, said Kotak Institutional Equities.

"Hence, continued government subsidies and trade barriers will be required for domestic growth. We arrive at a Rs1,540 per share value for Dixon’s fab business, and as a result, our Fair Value increases to Rs14,770. Upgrade the stock to 'reduce' (from 'sell)," it added. suggesting an upside potential of only 4 per cent in the stock

Reliance Industries | Previous rating: Add | Revised Rating: Buy | Fair Value: Rs 1,400

The RIL stock has significantly corrected in the last one year. Subdued retail was the key reason for weak performance, but we expect the store-rationalization cycle to end soon. Increased sanctions on Russia and repercussions of reciprocal tariffs by the US weaken the refining outlook, said Kotak. "We have cut FY26/27E Ebitda by 1-3 per cent," it said.

"Despite the cut, we expect earnings CAGR of 11 per cent over FY2024-27E. In our view, with significant correction, the risk-reward is more favorable. The retail business will likely improve in the next few quarters. News flows on telecom business IPO timelines (and likely another tariff hike before that) can be a catalyst," it added, upgrading the stock to 'buy' from 'add' with a fair value of Rs 1,400.

PVR Inox | Previous rating: Add | Revised Rating: Buy | Fair Value: Rs 1,200

PVR Inox stock has declined significantly in the past few months due to continued weakness in box office collections. While the issues plaguing the Bollywood industry seem structural, an improvement in movie releases is likely to drive higher Hollywood collections in FY2026E, said Kotak Institutional Equities.

"Even as the overall content cycle remains depressed, PVR Inox's initiatives on cost optimization and capital-light expansion are noteworthy. We cut our FY2026-27E Ebitda estimates further by 3-13 per cent (largely led by a delay in Bollywood recovery) and revised fair value to Rs 1,200 (from Rs 1,330). We believe that the recent correction is overdone and thus upgrade the stock to 'buy' from 'add' earlier," the brokerage added.