Stocks to buy: Samvat 2081 has been a year of challenges for the Indian stock market. The benchmark Nifty 50 has remained flat over the last year, primarily due to US tariffs, foreign capital outflow, weak earnings, and the rupee’s depreciation.
However, the coming Samvat 2082 could be better, as earnings are expected to revive amid India’s favourable macroeconomic outlook.
“As we step into Samvat 2082, the long-term equity market outlook looks promising. Despite global market headwinds and key domestic events, India’s growth story is only getting stronger, and the country is heading towards becoming the world’s third-largest economy in the next few years,” said brokerage firm Mirae Asset Sharekhan.
However, the brokerage firm emphasised that the best days are already behind us, and market leadership is likely to change after a couple of years of a mega run in the small- and mid-cap segments, followed by a lull period in 2025.
“Large caps look well poised to outperform over the next year, with relatively better risk-reward and comfortable valuations,” said the brokerage firm.
Mirae Asset Sharekhan has presented its portfolio of 12 Diwali picks, which, as per the brokerage firm, are value-buying opportunities with strong fundamentals.
Stock picks for long-term
Hindustan Aeronautics (HAL) | Previous close: ₹4,747.15 | Target price: ₹6,000
The brokerage firm underscored that HAL has a strategic place in India’s defence story as it is a dominant supplier of aircraft, helicopters, engines, avionics and accessories.
It is also the leading provider of maintenance, repair, and overhaul services to the Indian defence forces.
“Order backlog stands strong at nearly ₹1.9 lakh crore (6 times trailing-twelve-month revenue), which provides healthy revenue growth visibility over FY26E-27E. Order pipeline remains robust for HAL, with ₹1 lakh crore expected to be placed with the company in the coming one to two years. This pipeline gives longer-term revenue growth visibility in the coming years,” said the brokerage firm.
“The stock trades at 30 times its FY27E EPS. With the strong order book with a strong inquiry pipeline, we maintain our positive view of the stock for a target price of ₹6,000 factoring a revenue and PAT CAGR growth of 16 per cent and 13 per cent, respectively,” Sharekhan said.
State Bank of India (SBI) | Previous close: ₹876.90 | Target price: ₹980
Sharekhan is constructive on SBI given its well-positioned balance sheet to capitalise growth and healthy subsidiary performance.
“There are no concerns on asset quality and on the back of that, we expect the bank to sustain healthy return ratios in the near to medium term. Pressure on operating profitability is transient,” said Sharekhan.
“SBI trades at 1.2 times and 1 time its FY26E and FY27E core book value, respectively. With no emerging asset quality concerns, we anticipate the bank sustaining an RoA of 1 per cent and RoE of 14-15 per cent in the near to medium term,” said the brokerage firm.
“Core operating profitability is expected to face pressure in FY2026E, which is already priced in. Management’s focus is on ramping up treasury and fee income. Besides, a robust balance sheet and an improved system liquidity position are well-suited to capitalise on growth,” Sharekhan said.
Maruti Suzuki India | Previous close: ₹16,255.25 | Target price: ₹18,400
“We expect GST rate cuts, festive period bookings and model launches to spur demand. SUVs, including EVs, would be key to growth in the medium term. To strengthen its product portfolio further, Maruti has launched Victoris, a mid SUV and E Vitara, powered by an ICE engine/electric drivetrains, respectively,” Sharekhan said.
Bharti Airtel | Previous close: ₹1,946.20 | Target price: ₹.2,200
The brokerage firm pointed out that Bharti Airtel’s ARPU growth is driven primarily by premiumisation, postpaid upgrades, international roaming penetration, and new value-added bundles.
“The company is focusing on modular expansions in cloud, digital, and fibre. It is prioritising deleveraging, higher shareholder payouts and targeted M&A in adjacencies, along with focus on prudent capital allocation,” said Sharekhan.
Larsen & Toubro (L&T) | Previous close: ₹3,741.30 | Target price: ₹4,550
Sharekhan underscored that L&T targets an order inflow growth of 10 per cent year-on-year (YoY), revenue growth of 15 per cent YoY and an 8-8.25 per cent operating profit margin for the core P&M (plant and machinery) business for FY26. Order book stays at an all-time high of nearly ₹6.13 lakh crore, which is 3.1 times trailing-twelve-month revenues.
The brokerage firm expects L&T to benefit from healthy international order intake, led by the Middle East, along with a pickup in domestic order inflows.
The GCC region, led by Saudi Arabia, will continue to strengthen its physical and digital
infrastructure apart from monetising oil and gas wealth. Coincidentally, multiple GCC (Gulf Cooperation Council) countries have embarked upon energy expansion and transition journeys with large investment outlays, the brokerage firm said.
“The stock trades at a P/E of 26.5 times and 22.1 times its FY26E and FY27E earnings, respectively, which provides further room for upside considering its strong order prospects,” said the brokerage firm.
Lupin | Previous close: ₹1,937.65 | Target price: ₹2,400
According to the brokerage firm, Lupin’s management has successfully executed plans to add high-margin complex drugs to its portfolio in the US.
In five years, the management aims to launch over 100 products, of which complex drugs will comprise 55 per cent from 34 per cent now, said the brokerage firm.
“Management plans to introduce over 80 products in four years. Chronics segment contributes 65 per cent of domestic formulations as of Q1FY26, and the management aims to increase the same to 70 per cent by FY30,” said Sharekhan.
Amber Enterprises India | Previous close: ₹8,191.50 | Target price: ₹9,300
Mirae Asset Sharekhan has a buy call on Amber Enterprises, factoring in long-term revenue growth triggers across segments.
“We build in a revenue and PAT CAGR of nearly 23 per cent and 39 per cent, respectively, over FY25-FY27E. At the current market price, the stock trades at a valuation of 74 times and 47 times its FY26E and FY27E EPS, respectively,” said Mirae Asset Sharekhan.
Chalet Hotels | Previous close: ₹910.90 | Target price: ₹1,172
According to the brokerage firm, Chalet Hotels’ hospitality business may perform strongly in the coming years, led by strategic acquisitions, inventory expansion and better operational efficiency.
Higher contribution from commercial business would be an additional growth driver, said Sharekhan.
The brokerage firm highlighted that the management has guided for double-digit RevPAR (revenue per available room) growth in FY26. It eyes over 4,500 operational and in-pipeline rooms by December 2025 and aims to cross 5,000 rooms in FY26.
It has guided for a capex of nearly ₹2,000 crore by FY27 that would be funded by internal accruals. As of Q1FY26-end, net debt stood at ₹2,018 crore, the brokerage firm underscored.
Sharekhan expects Chalet Hotels’ consolidated revenue and PAT to grow at CAGRs of 25 per cent and 35 per cent, respectively, over FY25-FY28E.
“With strong operating performance and reduction in debt expected, we expect the return profile to substantially improve in the coming years,” said the brokerage firm.
Cummins India | Previous close: ₹3,945.15 | Target price: ₹4,500
The brokerage firm highlighted that Cummins India’s power generation business is seeing broad-based demand revival since the start of 2025.
“Demand recovery and price stabilisation have driven up volumes to CPCB-IV pre-buying levels. On the HHP front, the company has seen steady demand from data centres, hospitals, and other power-sensitive segments, which it expects to continue,” said Sharekhan.
“Strong demand traction is also seen in industrial and distribution segments. Exports stay strong, particularly in data centres and the LHP segments across multiple regions. Europe, Africa, and the Middle East are seeing steady demand,” Sharekhan added.
The brokerage firm expects 15 per cent and 16 per cent CAGRs in revenue and PAT over FY25-27E, respectively. Given the domestic demand uptick due to the adoption of CPCB-IV emission norms and the gradual recovery in export business, we maintain a buy rating with a target price of ₹4,500,” said the brokerage firm.
Housing & Urban Development Corporation (HUDCO) | Previous close: ₹224.90 | Target price: ₹260
According to the brokerage firm, HUDCO is well-positioned for robust growth, with AUM projected to grow by more than 25 per cent CAGR and PAT by more than 23 per cent CAGR through FY27, underpinned by robust demand and favourable negative credit costs.
“The management is focused on swiftly enhancing asset quality, targeting the resolution of all bad assets within 18 months. This financial trajectory is expected to deliver strong profitability, with RoA exceeding 2.3 per cent and RoE of over 15 per cent by FY27,” said the brokerage firm.
“The stock presents a good investment opportunity, as the strong outlook limits downside risk. Beyond sustained growth from the existing healthy project pipeline, expansion will be strategically driven by major catalysts like the Urban Challenge Fund and the public-private partnership model. The stock trades at 2.3 times and 2 times FY26E and FY27E BVPS, respectively,” said Sharekhan.
MOIL | Previous close: ₹376.25 | Target price: ₹405
Sharekhan underscored that around half of India’s manganese ore requirement is currently imported due to the unavailability of higher grades. MOIL has the requisite higher grades and hence, strong volume growth.
The company plans to increase its production volume to 3.5 million tonnes (from 1.8 million tonnes in FY25) by FY30. Volume growth of more than 10 per cent is expected every year, in line with this, said the brokerage firm.
Triveni Turbine | Previous close: ₹524.10 | Target price: ₹ 700
According to Sharekhan, Triveni Turbines expects to scale up its presence significantly in international markets, which is predictable from the surge in order bookings and the inquiry pipeline.
The brokerage firm expects Triveni Turbines’ revenue and PAT CAGRs of 21 per cent and 23 per cent, respectively, over FY25-FY27E.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of the broking firm, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
