Looking for some solid stocks to fuel your long-term growth strategy? Despite the current concerns around inflation and geopolitical tensions, the Indian stock market has been showing impressive resilience, with a 17% gain this year. Experts are optimistic about India’s medium-to-long-term growth potential, thanks to sustained economic growth, increasing participation of retail investors, and expectations of policy reforms. It’s crucial to consider investing in high-quality stocks for the long run to navigate through short-term market volatility. Nirmal Bang Institutional Equities has identified five stocks with promising upside potential that you might want to keep an eye on:
1. Ambuja Cements
– Previous close: ₹629.60
– Target price: ₹1,014
– Upside potential: 61%
– Why consider Consistent capacity utilisation, substantial brand equity, cost-effective operations, and a robust balance sheet?
– Growth outlook: Expansion in market share, capacity growth, and solid internal accruals.
2. State Bank of India (SBI)
– Previous close: ₹790.85
– Target price: ₹1,030
– Upside potential: 30%
– Why consider Leading corporate and retail lending positions, strong capital positions, and solid deposit franchises?
– Growth outlook: Strong demand in retail, especially home loans, and a vast distribution network.
3. HDFC Bank
– Previous close: ₹1,665.95
– Target price: ₹2,095
– Upside potential: 26%
– Why consider a Solid capital position, ongoing branch expansion, digital footprint, and cross-selling opportunities?
– Growth outlook: Anticipates double-digit growth driven by an expanding loan book and the benefits of a reverse merger.
4. United Spirits
– Previous close: ₹1,523.35
– Target price: ₹1,725
– Upside potential: 13%
– Why consider: Upbeat demand outlook, growing premiumisation trend, and a diverse product portfolio.
– Growth outlook: Potential benefits from the UK-India FTA include making products more accessible.
5. The Indian Hotels Company
– Previous close: ₹689.05
– Target price: ₹750
– Upside potential: 9%
– Why consider: Dominant player in the hospitality sector, strong presence in the luxury segment, diverse portfolio, and a healthy balance sheet.
– Growth outlook: Positioned to benefit from a thriving tourism and hospitality ecosystem with an agile management team.
