Bernstein Adds Eternal, Paytm And Adani Ports To India Portfolio, Drops DMart

Bernstein has made four changes to its India model portfolio, with the brokerage adding three stocks and exiting Avenue Supermarts. The revised portfolio retains large-cap names such as L&T, NTPC, Titan, HDFC Bank and Axis Bank.

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Adani Ports, Eternal And Paytm Added

Adani Ports has been included with a target price of ₹1,973. Bernstein’s rationale centres on the company’s balance sheet, pricing power and potential contribution from its international operations.

Eternal has been added with a target price of ₹350. The brokerage cited easing competition in quick commerce along with an improvement in EBITDA and order value trends.

Paytm has also entered the portfolio, carrying a target price of ₹2,200. Bernstein sees potential for higher margins if a merchant discount rate (MDR) is introduced for UPI transactions. Its core payments business is also viewed as providing support to the company’s valuation.

The changes could bring renewed attention to the Adani Ports share price, Eternal share price and Paytm share price as investors assess the individual factors behind the portfolio changes.

DMart Removed After Recent Outperformance

Avenue Supermarts, which operates the DMart retail chain, has been removed from the portfolio following its recent outperformance. Bernstein has also pointed to increasing competition from quick-commerce platforms as a concern for the company’s urban consumption base.

With the latest changes, Bernstein’s India model portfolio consists of 13 stocks. L&T, NTPC, Titan, HDFC Bank and Axis Bank remain among its key holdings.

Bernstein Links Eternal To Wider Economic Trends

The portfolio changes come alongside a separate Bernstein strategy note examining what it describes as India’s “distortion economy”. The report identifies policy measures including GST cuts, production-linked incentives, rural cash transfers, capital controls and foreign borrowing as factors influencing economic activity and corporate earnings.

Eternal features directly in the brokerage’s discussion of subsidy-led distortions. Bernstein has linked welfare transfers to a larger pool of workers choosing flexible, gig-based employment. It identified Eternal and Delhivery as companies that could benefit from the expansion of gig-based employment.

The report also highlighted the potential impact of the Central government’s once-in-a-decade wage revision, effective from January 2026. Bernstein estimates that the measure could result in more than $20 billion a year being transferred to central government employees, with a larger impact possible if states follow. Titan was identified in connection with the expected effect on premium and discretionary consumption.

Portfolio Changes Remain Stock Specific

Adani Ports and Paytm were not identified as direct beneficiaries of the eight distortions discussed in Bernstein’s strategy note. Their inclusion in the portfolio instead reflects factors specific to the companies, including Adani Ports’ international growth prospects and Paytm’s potential margin improvement from an MDR framework.

Bernstein has retained a Nifty target of 26,000. The portfolio reshuffle therefore represents a shift among individual stocks rather than a broad change in its stated market target. For investors tracking the Adani Ports share price, Eternal share price and Paytm share price, the latest portfolio changes bring company-specific factors back into focus.