IPL Portfolio: ITC among 6 all-rounder stocks from smallcase manager Karthick Jonagadla

ITC, HUL, NTPC, Power Grid, Sun Pharma and Nestle are 6 stocks which Karthick Jonagadla, smallcase manager and Founder & CEO of Quantace Research, says are "all-rounders" who can anchor the innings when markets get choppy.

Edited excerpts from a chat on investing in IPL-style.

How should investors handle the unpredictable and fast-paced bowling by Trump?

Just as a batsman faces a fiery spell from a hostile fast bowler, investors must stay calm and focused amid the market volatility triggered by global events and policy shifts from the Trump administration. The best approach is:

• Stick to your game plan: Maintain a diversified portfolio and avoid knee-jerk reactions to news headlines.
  
• Play defensively when needed: Allocate a portion to defensive sectors like FMCG, utilities, and pharma, which tend to be resilient during global uncertainty. Consider assets like Gold and Bonds for portfolio Stability
  
• Keep an eye on the scoreboard: Regularly review your portfolio, rebalance if necessary, and ensure your investments align with your risk appetite and long-term goals.
  
• Look for scoring opportunities: Volatility creates chances—be ready to add quality stocks at attractive valuations when others panic.
  
• Don’t chase every ball: Avoid speculative trades based on short-term noise. Focus on fundamentals and long-term value creation.
  

Investors should treat volatility as part of the game, focusing on fundamentals, diversification, and disciplined investing rather than reacting emotionally to every delivery

Which stocks have given explosive returns this season of the IPL, just like the biggest six-hitters of the field?

Since the start of IPL 2025 (March 21 to April 17), several stocks have delivered explosive “six-hitter” returns, each propelled by strong catalysts. Websol Energy (WEBELSOLAR) led with a 48.03% gain, fueled by a major 100 MW solar cell supply deal and a ₹220 crore investment to double its manufacturing capacity, cementing its position in India’s renewable energy boom. Paradeep Phosphates surged 42.67% to all-time highs, driven by a 399.63% profit jump for the nine months ending December 2024, a 6.79% rise in net sales, and robust institutional confidence with a 31.62% institutional holding.

India Glycols gained 32.19%, supported by steady earnings growth, improved sales efficiency, and an attractive P/E of 16.14, drawing renewed interest to the chemicals sector. Power Mech Projects climbed 29.06% after securing a ₹579 crore order from BHEL, expanding its strong order book and reinforcing its leadership in infrastructure.

Vardhman Textiles (VTL) rebounded 26.92%, outperforming its sector as Indian textile stocks rallied despite new US tariffs. The US imposed a 26% tariff on Indian textiles—lower than those on Chinese, Vietnamese, and Bangladeshi exports—making Indian products more competitive and positioning Vardhman to capture greater US market share.

BSE rounded out the list with a 24.09% rally, including an 18% surge in just two days after regulatory relief from the NSE’s expiry day decision. Across these names, explosive returns were powered by sectoral tailwinds, marquee order wins, strong financials, and, where relevant, substantial institutional backing, making them the clear “six-hitters” of this IPL season.

While aggressive batsmen rule T20s, grounded all-rounders bring balance. Which defensive stocks bring stability amid volatility?

Defensive “all-rounder” stocks that provide stability:

• Hindustan Unilever (HUL): India’s leading FMCG company, known for its household brands and steady cash flows. HUL’s diverse product portfolio and strong pricing power help it weather economic slowdowns, making it a reliable anchor in any market condition.
  
  
• ITC Ltd: Boasts a diversified business model spanning FMCG, cigarettes, hotels, paper, and agribusiness. ITC is renowned for its consistent dividend payouts and robust balance sheet, offering both income and stability to investors.
  
• NTPC & Power Grid Corporation: These government-backed utilities generate and transmit electricity across India. Their regulated business models ensure predictable revenues and minimal earnings volatility, making them safe havens during market turbulence.
  
• Sun Pharma: As India’s largest pharmaceutical company, Sun Pharma benefits from a strong domestic presence and significant export revenues. Its focus on essential medicines and a resilient supply chain help it maintain steady performance regardless of broader market swings.
  
  
• Nestlé India: Consistent performer in the consumer staples space.
  

These companies are the “all-rounders” who can anchor the innings when markets get choppy.

Certain IPL teams defy probability and end up on top. Which unsung stocks surprised investors with unforeseen returns?

Just as certain IPL teams defy the odds and rise to the top, Gold has emerged as the true unsung hero in investment portfolios. For example, take the FREE Quantace Multi Equity & Gold which we are actively running for over the last 3.1 years. Despite being under-owned—most investors allocate less than 5% to gold—its inclusion has showcased results that surprised even seasoned market watchers. This ETF strategy, currently at all-time high with a mandatory 25% allocation to gold, outperformed the Nifty by a wide margin: it showcased a 21.7% annualized CAGR, compared to the Nifty’s 11.7% CAGR.

What truly sets this strategy apart is portfolio risk control that gold brings in. The portfolio’s annualized volatility is maintained at 11.3%, lower than the Nifty’s 13.4%, and its risk-adjusted return (reward-to-risk ratio) improved to 1.9, more than double the Nifty’s 0.91. This means investors enjoyed not only higher returns but also a much smoother ride, with less portfolio stress during market turbulence. The beta of 0.6 shows it was far less sensitive to market swings.

Gold’s low correlation with equities and its ability to shine during uncertainty—whether from inflation, currency swings, or geopolitical shocks—made it the underdog that outperformed expectations. In a season where most investors overlooked it, gold proved to be the “giant killer,” transforming a balanced portfolio into a consistent winner and exemplifying how a strategic 25% allocation can double returns with similar risk.

If you were to construct a Dream 11 portfolio today, which stocks or sectors would find a place in your team?

I’d lean towards largecaps, with private banks and FMCG as my top picks. FMCG stands to benefit from cooling inflation, lower oil prices, good monsoon and improving rural demand. Private banks are riding a credit growth wave, with expanding net interest margins and strong asset quality positioning them for sustainable 15–17% ROIs. This mix offers both stability and growth potential for the next quarter.

• Openers (Momentum): Kaveri Seeds, Power Mech
  
• Middle Order (Defensive): HUL, ITC, HDFC Bank
  
• All-rounders: NTPC
  
  
• Finishers (Growth): ICICI Bank
  
  
• Bowlers (Risk Mitigation): Power Grid, Nestlé India, Sun Pharma
  
• Wicketkeeper (Gold ETF): For safety
  
• Impact Player: Mazagon Dock
  

If markets were a T20 match, where are we in the innings currently – early overs, slog overs, or a mid-innings slowdown?

We are currently in the early mid-innings phase:

• The market has already seen strong gains over the past two years (the “powerplay”).
  
• Valuations are stretched in some pockets, and volatility is rising (akin to consolidating after a brisk start).
  
• Investors should focus on rotating the strike, consolidating gains, and waiting for the right opportunities—keeping some powder dry for the “slog overs” (potential corrections or new growth triggers).
  

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)