Long-term stocks to purchase: For five months, the Indian stock market was in fall, with the Sensex down 15% and the Nifty 50 down about 16%. Rahul Ghose, CEO of Hedged.in, suggests ten long-term equities during this downturn because of their solid fundamentals and room for growth.
Long-term investments in stocks: The benchmarks, the Sensex and the Nifty 50, ended February with losses of around 6% apiece, keeping the Indian stock market on a downward trend for the fifth straight month.The Sensex is currently down 12,780 points, or almost 15%, from its September 27 peak of 85,978 last year. The index is currently at 73,198. From its peak of 26,277, the Nifty 50 has fallen 4153 points, or about 16 percent. On Friday, the index closed at 22,124.70.
Due to a variety of challenges, such as foreign capital flight, stretched valuations, poor results, indications of a slowdown in the local economy, and global issues, the majority of Nifty 50 equities have experienced significant losses since October.
Since last October, the stock prices of Tata Motors, Trent, Bajaj Auto, BPCL, Hero MotoCorp, Asian Paints, Adani Enterprises, and IndusInd Bank have plummeted by 30 to 36 percent.
Rahul Ghose, CEO of Hedged.in, believes that some stocks provide chances despite the market meltdown because of their solid fundamentals, room for expansion, and anticipated industry tailwinds. He chooses ten stocks to purchase over time. Look at this:
Long-term ITC shares to purchase | last close: ₹394.70 | anticipated target price: ₹522
Ghose noted that ITC's broad business strategy provides a strong buffer against sector-specific volatility by encompassing industries like agribusiness, paperboards, hotels, and fast-moving consumer goods (FMCG).
Given that taxes were not raised in the most recent budget, Ghose anticipates that the volume expansion of the cigarette industry would continue.
"ITC has made pertinent strategic steps to boost growth in the FMCG non-cigarette industry in the near future. In the upcoming years, the return profile of the asset-heavy hotel company would significantly improve following the demerger, according to Ghose.
With a revised SOTP-based price objective (PT) of ₹522, several analysts continue to recommend buying the company. Ghose stated, "We think the best price to buy will be in the range of ₹370-360, even though the stock is available at a good valuation even at the current market price."
ABB India | Predicted target price: ₹6,200–7,000 | Previous close: ₹4931.65
ABB's opportunity pipeline is still strong, according to Ghose, thanks to growth in the food and beverage (F&B), chemicals, pharmaceutical, automotive, power distribution, water, and cutting-edge sectors including electronics, data centers, and renewable energy.
Furthermore, as India's premiumization trend gains momentum, increased demand for high-end goods will support margin growth.
Given its broad presence in important core industry areas and its product line, which allows it to take advantage of the tailwinds in the economy's capital expenditure growth, ABB is seen favorably.
"ABB's diverse presence across key sectors of core industries and product range is viewed favorably in order to capitalize on the tailwinds in the economy's capital expenditure growth," Ghose stated.
"Based on CY 2026 earnings estimates, multiple analysts have projected targets for the stock in the range of ₹6,200-7,000 due to its strong balance sheet and ROCE generation," Ghose stated.
Tata Motors | Target price expected to be between ₹850 and ₹900 | Previous close: ₹620.55
The poor demand forecast for domestic heavy commercial and passenger cars as well as for Jaguar Land Rover (JLR) across important markets for the fiscal year 2025–2026 caused selling pressure on Tata Motors' stock.
Pressure was further increased by the possibility that import taxes from the European Union will be imposed in the US, which would affect JLR's sales there. A quarter of JLR's retail sales come from the US market.
Nonetheless, the stock has advanced significantly in the automotive sector, especially with its emphasis on sustainable mobility solutions and electric cars (EVs).
The company's strong product selection in the passenger and commercial vehicle segments, as well as strategic partnerships, have improved its market position, according to Ghose. Tata Motors' dedication to solutions that are ready for the future is demonstrated by its ongoing investments in EV infrastructure and technology.
"The stock should hold its significant support level, which is located in the ₹630–₹640 range. We advise keeping your stake in Tata Motors and perhaps buying more shares at reduced prices. We may anticipate that the stock will eventually return to the ₹850–₹900 range, but the time horizon must be at least a year and a half," Ghose stated.
Kotak Mahindra Bank | ₹1,900.75 was the previous close. Target price anticipated: ₹2,100
Ghose emphasized that Kotak Mahindra Bank has continuously produced better returns because to its sound risk management procedures and high capital adequacy ratios.
"A balanced revenue stream is provided by the bank's diverse business, which includes retail banking, asset management, and insurance. Its focus on customer-centric services and digital transformation has increased its market reach, according to Ghose.
Ghose stated, "A projected target price of ₹2,100 shows confidence in the bank's operational efficiency and growth prospects."
Asian Paints | Target price anticipated: ₹3,500 | Previous close: ₹2179.95
Asian Paints enjoys a strong brand identity and a wide distribution network as a leader in the Indian paint business. The company's ongoing emphasis on innovation, which includes launching technologically sophisticated and environmentally friendly products, satisfies changing consumer demands. Its revenue streams are further diversified by its expansion into the home renovation and décor sectors.
From a longer-term standpoint, the values present an alluring opportunity because they are below historical averages. Given their optimistic outlook for its further expansion, analysts have set a target price of ₹3,500, according to Ghose.
Shree Cement | Target price anticipated: ₹32,670 | Previous close: ₹27,277.35
Shree Cement's position in the cement business has been cemented by its strategic capacity increases and operational efficiency. The company's competitive advantage is strengthened by its emphasis on cost optimization, usage of alternative fuels, and dedication to sustainable practices.
Its expansion plans are supported by a sound balance sheet and wise capital deployment. Because they are confident in Shree Cement's future performance, analysts have set a target price of ₹32,670," Ghose added.
Supreme Industries | Target price anticipated: ₹5,000 | Previous close: ₹3,326.50
According to those, Supreme Industries is anticipated to gain from robust demand in housing, infrastructure, and agricultural, which will stabilize PVC prices at lower levels.
Due to consistent demand, it is well-positioned to attain a robust volume growth trajectory over the next three to four years. A 10% net earnings CAGR over FY2024–FY2027 is anticipated due to a favorable long-term demand forecast and incremental capacity increases, according to Ghose.
The stock's price-to-earnings ratio, or PE, is 42.4 times its FY2026E profits and 35.8 times its FY2027E earnings.
Havells India | Target price anticipated: ₹1,820-1,850 | Previous close: ₹1,422.05
Havells is well-positioned to take advantage of growing customer demand because to its wide range of consumer durable and electrical items and strong distribution network.
Its revenue streams are further diversified by its expansion into smart home solutions and rural markets.
Even with recent setbacks, such a 5.46 percent decline in share price when Q2 FY25 earnings results fell short of market expectations, Havells' long-term development prospects are still bright thanks to strategic initiatives and a strong financial base. Given their favorable assessment of Havells' position in the market, analysts have set a target price of ₹1,820–1,850, according to Ghose.
Granules India | Target price anticipated: ₹700 | Previous close: ₹461.55
A well-known pharmaceutical company, Granules India, has lately made strategic moves to improve its market position and future growth.
Because of the higher demand for value-added products, it has recorded greater profitability.
With a larger percentage of value-added products and new product launches, management expects the Finished Dosage Form (FDF) segment to contribute 75% of total sales.
According to Ghose, the North American market, which is anticipated to expand by 20% in FY25E, would likely lead growth in the near future. As the demand for paracetamol increases beginning in FY26E, the European market is anticipated to recover the following year.
IPCA Laboratories | Target price anticipated: ₹1,980 | Previous close: ₹1,353.45
The growth potential of IPCA Laboratories is highlighted by its integrated activities in active pharmaceutical ingredients (APIs) and formulations, as well as its strong presence in both domestic and foreign markets.
The company's competitive position is supported by its emphasis on cost effectiveness, quality compliance, and a strong product pipeline.
Ghose said that IPCA Labs' earnings showed a pitiful 3% CAGR from FY19 to FY24, driven mostly by a 200bp decline in its EBITDA margin. However, it is projected that the company will produce a strong 27% earnings increase in FY25–FY27, propelled by the margin improvement of 170 basis points.
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