Shares to purchase for the long run: The Indian inventory market remained on a downward trajectory for the fifth consecutive month in February, with benchmarks—the Sensex and the Nifty 50—ending the month with losses of almost 6 per cent every.
Sensex is now down 12,780 factors, or about 15 per cent, from its peak of 85,978, which it hit on September 27 final 12 months. At current, the index is at 73,198. The Nifty 50 has plunged 4153 factors, or almost 16 per cent, from its all-time excessive of 26,277. The index closed at 22,124.70 on Friday.
Most Nifty 50 shares have suffered stable losses since October as a result of a plethora of headwinds, together with international capital outflow, stretched valuations, weak earnings, indicators of a slowdown within the home economic system and world components.
Shares of Tata Motors, Trent, Bajaj Auto, BPCL, Hero MotoCorp, Asian Paints, Adani Enterprises and IndusInd Financial institution have crashed 30-36 per cent since final October.
Amid this market crash, Rahul Ghose, CEO of Hedged.in, sees alternatives in choose shares as a result of their sturdy fundamentals, development potential and expectations of tailwinds for the sector. He picks 10 shares to purchase in the long run. Have a look:
Shares to purchase for the long run
ITC | Earlier shut: ₹394.70 | Anticipated goal value: ₹522
Ghose identified that ITC’s diversified enterprise mannequin encompasses sectors similar to fast-moving shopper items (FMCG), resorts, paperboards, and agribusiness, providing a strong protect towards sector-specific volatilities.
The corporate’s FMCG section has persistently grown, pushed by product innovation and an increasing distribution community. Concurrently, the tobacco division generates sturdy money flows, bolstering total monetary well being.
Ghose expects the cigarette enterprise’s quantity development to be sustained, because the current Price range didn’t improve tax.
“ITC has undertaken related strategic actions to revive development within the non-cigarette FMCG enterprise within the close to time period. After the demerger of the asset-heavy lodge enterprise, its return profile will considerably enhance within the coming years,” stated Ghose.
“Varied analysts preserve a purchase on the inventory with a revised SOTP-based value goal (PT) of ₹522. Though the inventory is offered at an excellent valuation even on the present market value, we consider one of the best value to purchase will likely be within the vary of ₹370-360,” stated Ghose.
ABB India | Earlier shut: ₹4931.65 | Anticipated arget value: ₹6,200-7,000
Ghose stated ABB’s alternative pipeline stays strong, fueled by traction throughout F&B (meals and beverage), chemical compounds, pharma, automotive, energy distribution, water, and new-edge industries similar to electronics, knowledge centres, and renewables.
As well as, with the premiumization development on the centre stage in India, increased demand for premium merchandise will assist margin enlargement.
The view on ABB is optimistic, contemplating its numerous presence throughout key sectors of core industries and the product vary it has to capitalise on the tailwinds within the economic system’s capex development.
“The view on ABB is optimistic contemplating its numerous presence throughout key sectors of core industries and product vary, which is to capitalise the tailwinds within the capex development of the economic system,” stated Ghose.
“With sturdy steadiness sheet and ROCE era, varied analysts have projected targets within the vary of ₹6,200-7,000 for the inventory based mostly on CY 2026 earnings estimates,” stated Ghose.
Tata Motors | Earlier shut: ₹620.55 | Anticipated goal value: ₹850- ₹900
Tata Motors inventory had seen promoting strain on account of the weak demand outlook for Jaguar Land Rover (JLR) throughout key markets and for home heavy business and passenger automobiles for the monetary 12 months 2025-2026.
Moreover, the chance of import tariffs from the European Union being carried out within the US, which can impression JLR gross sales within the US, added to the strain. The US market accounts for 25 per cent of JLR’s retail gross sales.
Nonetheless, the inventory has made important strides within the automotive business, notably with its deal with electrical automobiles (EVs) and sustainable mobility options.
Ghose famous that the corporate’s strong product lineup in each passenger and business car segments, together with strategic collaborations, has enhanced its market place. Ongoing investments in EV infrastructure and know-how underscore Tata Motors’ dedication to future-ready options.
“The inventory has an necessary assist close to ₹630 – ₹640 zone, and that ought to stay intact. We suggest persevering with to carry on to Tata Motors and presumably accumulating the inventory on the decrease ranges. Finally, we will anticipate the inventory to maneuver in the direction of ₹850 – ₹900 ranges once more, however the time horizon must be at the very least a year-and-a-half,” stated Ghose.
Kotak Mahindra Financial institution | Earlier shut: ₹1,900.75 | Anticipated goal value: ₹2,100
Kotak Mahindra Financial institution’s prudent danger administration practices and robust capital adequacy ratios have persistently delivered superior returns, Ghose underscored.
“The financial institution’s diversified portfolio, encompassing retail banking, asset administration, and insurance coverage, offers a balanced income stream. Emphasis on digital transformation and customer-centric companies has expanded its market attain,” stated Ghose.
“A goal value of ₹2,100 has been projected, indicating confidence within the financial institution’s operational effectivity and development prospects,” stated Ghose.
Asian Paints | Earlier shut: ₹2179.95 | Anticipated goal value: ₹3,500
As a pacesetter within the Indian paint business, Asian Paints advantages from sturdy model fairness and an intensive distribution community. The corporate’s steady deal with innovation, together with introducing eco-friendly and technologically superior merchandise, caters to evolving shopper preferences. Growth into residence décor and enchancment segments additional diversifies its income streams.
“The valuations are beneath historic averages, providing a sexy alternative from a longer-term perspective. Analysts have set a goal value of ₹3,500, reflecting optimistic expectations for its sustained development,” stated Ghose.
Shree Cement | Earlier shut: ₹27,277.35 | Anticipated goal value: ₹32,670
Shree Cement’s operational effectivity and strategic capability expansions have solidified its place within the cement business. The corporate’s deal with price optimisation, use of other fuels, and dedication to sustainability practices improve its aggressive benefit.
“A robust steadiness sheet and prudent capital allocation assist its development initiatives. Analysts have set a goal value of ₹32,670, reflecting confidence in Shree Cement’s future efficiency,” stated Ghose.
Supreme Industries | Earlier shut: ₹3,326.50 | Anticipated goal value: ₹5,000
Supreme Industries is anticipated to profit from wholesome agriculture, housing, and infrastructure demand, stabilising PVC costs at decrease ranges, stated these.
It’s well-poised to realize a wholesome quantity development trajectory over the following three to 4 years owing to sustained demand. A superb long-term demand outlook and incremental capability additions are more likely to drive a ten per cent web earnings CAGR over FY2024-FY2027,” stated Ghose.
The inventory trades at a PE (price-to-earnings ratio) of 42.4 instances and 35.8 instances its FY2026E and FY2027E earnings, respectively.
“Analysts preserve a purchase with a revised goal value of ₹ ₹5,000. Technically, the inventory is poised for a correction. The very best alternative to enter will likely be across the stage of ₹3,000, providing sufficient upside potential. ₹3,000 was the breakout stage in June 2023, from the place the inventory went on to make an all-time excessive. The breakout stage is more likely to act as a powerful assist for this correction,” stated Ghose.
Havells India | Earlier shut: ₹1,422.05 | Anticipated goal value: ₹1,820-1,850
Havells’ in depth vary {of electrical} and shopper sturdy merchandise, supported by a strong distribution community, positions it nicely to capitalize on rising shopper demand.
Growth into rural markets and sensible residence options additional diversifies its income streams.
“Regardless of current challenges, similar to a 5.46 per cent drop in share value following Q2 FY25 revenue figures that missed market expectations, Havells’ long-term development prospects stay promising, supported by strategic initiatives and a strong monetary basis. Analysts have set a goal value of ₹1,820-1,850, reflecting optimistic sentiment in the direction of Havells’ market place,” stated Ghose.
Granules India | Earlier shut: ₹461.55 | Anticipated goal value: ₹700
Granules India, a outstanding pharmaceutical firm, has just lately undertaken strategic initiatives to boost its market place and development prospects.
It has reported improved margins, pushed by elevated demand for value-added merchandise.
Administration anticipates that the contribution from the Completed Dosage Type (FDF) section will rise to 75 per cent, fuelled by the next share of value-added merchandise and new product launches.
Ghose stated that within the close to time period, development is anticipated to be led by the North American market, which is projected to develop by 20 per cent in FY25E. The European market is anticipated to rebound subsequent 12 months as demand for paracetamol picks up beginning in FY26E.
Moreover, Ghose identified that the corporate’s administration has raised its EBITDA margin steering to 22 per cent, supported by a number of components: (1) new product launches in high-value classes, (2) a rise in section three and 4 medical trials from the earlier section two trials, (3) the commercialisation of pilot initiatives for DCDA and PAP, and (4) a drop in enter prices.
“On the present market value, the inventory is buying and selling at roughly 21 instances and 18 instances its FY2026E and FY2027E earnings of ₹27.91 and ₹31.14, respectively, leading to a value goal of ₹700 per share. The very best value to enter this inventory is across the ₹450-420 vary,” stated Ghose.
IPCA Laboratories | Earlier shut: ₹1,353.45 | Anticipated goal value: ₹1,980
IPCA Laboratories’ built-in operations in lively pharmaceutical substances (APIs) and formulations, together with a powerful presence in home and worldwide markets, underscore its development potential.
The corporate’s deal with price effectivity, high quality compliance, and a strong product pipeline helps its aggressive place.
Ghose identified that in FY19-FY24, IPCA Labs’ earnings recorded a meagre 3 per cent CAGR, led by a 200bp drop in its EBITDA margin. Nonetheless, it’s anticipated that the corporate will generate a strong earnings development of 27 per cent throughout FY25-FY27, pushed by the 170 bps enchancment in margin.
“Analysts have set a goal value of ₹1,980, reflecting optimism about IPCA Laboratories’ strategic course and market alternatives. We consider one of the best value to purchase the inventory is between ₹1,250-1,200 vary. Consistent with broader markets, the inventory might appropriate, providing a terrific reward-to-risk ratio on the above ranges,” stated Ghose.
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Disclaimer: This text is for academic functions solely. The views and suggestions expressed are these of the person analyst and don’t replicate Mint’s opinions or suggestions. The purchase suggestions and goal costs talked about are supplied by the knowledgeable. Buyers and merchants are suggested to seek the advice of licensed professionals earlier than making any funding selections.
