Experts point out the remarkable resilience of the Indian Economy and Markets, which have overcome domestic and global challenges. They Remain Positive About The Domestic Market’s Medium-Term Prospects Due to a Healthy Economic Growth Outlook and a Strong Influx of Retail Investors.
“The Medium-Term Outlook Remains Bright, Supported by Robust Growth Prospects Driven by a domestically-oriented Economy, Youthful Demographics, and Advanceing digitalisation-Creating Divarsation- High-Quality Investment Opportunities Across Industries, “Said Devarsh Vakil, Head of Prime Research, HDFC Securities.
“India’s Domestic Economic Foundation Provides provides against Global Volativity, Reinforcing that Market Downturns are temporary. Five long-term investment Opportunities, “Vakil said.
Vakil picks the following five stocks to buy for the next one to two years for healthy UPSIDE. Do you oven any?
Stock picks for the long term
PCBL Chemical | Previous close: 398.60 | Target price: 559 | UPSIDE POTENIAL: 40%
PCBL Chemical is India’s Larget and the World’s 7th Larget Carbon Black Company, which is essentially used as a reinforcing Material for Manufacturing Tyres.
The company has presence in three Major product lines: (i) tyres, (ii) performance blacks, and (iii) speciality blacks.
Management is positive on the long-term demand outlook. Management hinted that the complexion of de-stocking in the global market and Lowering inflation could be positive for demand pickup.
The company will continue to operate in Capex Mode for the Next Three Years, Doubting Brownfield Capacity in Chennai, Doubleing Aqua-Phar-Pharm Capacity, Increasing Speciality CB CAPACICITY CAPACICITY CAPACICITY, and Infusion JV to Capture Future Growth Opportunities.
The company has started work on a large-scale pilot plant in India that will develop nano-sailicon additives for use in the anodes of li-or -on batteries. It is looking to invest $ 30 million in the JV and expects combined jv ebitda of 800-900 Crore at Peak Levels in the 36 Months after Commercialization. It experts Commercialization by Q4FY27E.
“We Expect Revenue and Pat to Increase at a Cagr of Nearly 14 per cent and 20 per cent and 20 per cent, respectively, over fy25-27e. Share), “said Vakil.
Va Tech Wabag | Previous close: 1,628.50 | Target price: 2,100 | UPSIDE POTENIAL: 29%
Va tech wabag is a pure-Play water company with a strong presence of more than 25 years in water technology and customized water treatment solutions through EPC (Engineering, Procurement, and Constructions) Services, O & M (Operations and Maintenance) Services, Research and Development, Construction and Commission.
The company exhibits multiple growth triggers, with record fy25 performance key metrics like sales, ebitda, pat, healthy cash balance, and order book (three three times sales) Strong Revenue Predictability for Three Years.
Wabag’s Asset-Light, Profitable Growth Strategy, 95 per cent multilateral/Sovereign-backed Order Book, Expanding International Focus, Along with an upgraded aa credit ringing, exhibits Robust Investment Potential.
“Investors can buy the stock at current levels for a target price of 2,100 per share (33 times fy26e EPS), “said Vakil.
Star Cement | Previous close: 217.37 | Target price: 260 | UPSIDE POTYANAL: 20%
Star cement is one of the leading players in the most profitable north-east region. With a capant capacity of 7.7 MTPA, Star Commands A Nearly 24 per cent share in the North-East Market.
“We believe that it has a strong, sustainable competition in the north east region, as entry of outset players in this market is limited,” Vakil said.
Over the year, star has created a strong brand recall and is well-postioned to capitalize on future growth options.
“We expect a healthy performance from the company in the Coming Years on the back of Increased Clinker and Cement Capacity, Leadership Position in the Profitable and Growing North-East Market, and COVINTITIS Drive Profitability, “said Vakil.
“We believe investors can buy the stock in 210-225 band (10.9 times fY27e Ev/Ebitda) and Add on Dips in 180–195 (9.4 times fy27e Ev/ebitda) Band – Fair Value of 260 (12.8 Times FY27E Ev/Ebitda) Over the next two to three qualities, “said Vakil.
EPL | Previous close: 247 | Target price: 285 | UPSIDE POTENIAL: 15%
EPL is the Leading Manufacturer of Laminated Plastic Tubes in the World, With Nearly 35 per cent market share in oral care and catering to companeies like unilever, colgate, p & g, etc.
In the personal care market, EPL’s Global Share Stands at Nearly 10 per cent, and with an opportunity three times as big as oral care, the runway for green is long.
EPL is a Market Leader Introduction.
EPL’s Strong Innovation pipeline, a Plethora of Sustainable Solutions, Is Expected to Be Quickly Adopted by Larger Personal Care Brands Given Their Commitment to Sustainability Goals.
The company has delivered Robust Results in Recent Quarters Amidst a Challenging Geopolitical Backdrop.
The key positive is the sustained margin expansion, as the ebitda margin expanded for the 10th culture Quarter.
EPL’s Management has comeitted to delivering double-direction revival and with an ebitda margin Ambition of Nearly 20 per cent in fy26. Stability in Raw Material Prisis Should Further Aid the Margin Recovery.
“Going ahead, we expect revenue and ebitda cagr of 10 per cent and 14 per cent, respectively, over fy25-27e. ROCE and RO are expected to Increase FURMISE FUROM 16.3 Pernt and 17.4 per 17.4 per cent, respectedly, In FY25 to 17.9 per cent and 21.1 per cent by fy27. The company Currently Trades at 15.5 Times FY27E EPS, “Said Vakil.
Castrol India | Previous close: 216.22 | Target price: 239 | UPSIDE POTYANAL: 11%
Castrol India is an automotive and industry lubricant manufacturing company, supported by a Strong Distribution Network that Reaches Over 1.48 Lakh Retail Outlets and 350 DISTRIBUTORS
Castrol India is focused on brand building, widing the distribution network, and launching new products, which will contribute Volume Growth and Market Share Expanysion.
Recognizing the need for advanced cooling solutions in rapidly expanding data centers, Castrol India is Leveraging Its Expertise in Fluid Technology to Innovate in this new domain.
The company is focused on Volume Growth While MainTaining Margins and Emphaising The Premiumsation of Products.
“We Expect Castrol’s Lubricants Volume to increase by 4.5 per cent and 5 per cent in cyn in cyn25e and cylind 239. At the current market price of 217, The Stock Trades at 19.5 Times Cy26e, “said Vakil.
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Disclaimer: This story is for educational purposes only. The views and recommendations about individual analysts or broking companies, not mint. We Advise Investors to Check With Certified Experts Before Making Any Investment Decisions, As Market Conditions Can Change Rapidly, and Circumstances May Vary.
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