Top 10 Long-Term Stocks to Buy: ITC, Tata Motors, Kotak Bank Among Rahul Ghose’s Bullish Picks
Top 10 Long-Term Stocks : The Indian stock market has been on a downward trajectory, with the Sensex and Nifty 50 facing persistent selling pressure. However, amidst the market correction, Rahul Ghose, CEO of Hedged.in, has identified strong long-term investment opportunities in select stocks that exhibit resilience, strong fundamentals, and future growth potential.
Market Overview: A Prolonged Downturn
The Indian stock market has witnessed a sharp decline over the past five months, with the Sensex and Nifty 50 falling nearly 15% and 16%, respectively, from their all-time highs. The bearish trend has been driven by foreign capital outflows, weak corporate earnings, high valuations, and global economic concerns.
Several major stocks, including Tata Motors, Trent, Bajaj Auto, BPCL, and IndusInd Bank, have suffered declines between 30% and 36% since October. However, seasoned investors see this as a buying opportunity. Let’s look at Rahul Ghose’s top 10 long-term stock picks and why they hold strong potential for growth.
1. ITC (₹394.70) – Target Price: ₹522
Why ITC?
ITC’s diversified business model spanning FMCG, hotels, paperboards, and agribusiness provides a strong shield against volatility. Its cigarette business remains a cash cow, while FMCG and hospitality segments are growing rapidly. The company’s recent decision to demerge its hotel business will enhance profitability.
✔ Key Strengths: Strong cash flows, stable revenue streams, and robust expansion in FMCG.
✔ Best Buy Range: ₹370-₹360
2. Tata Motors (₹620.55) – Target Price: ₹850-₹900
Why Tata Motors?
Tata Motors is at the forefront of India’s EV revolution. Despite short-term concerns over JLR’s demand and EU tariff risks, the company’s focus on electric vehicles, commercial vehicle growth, and innovation makes it a compelling long-term bet.
✔ Key Strengths: Market leadership in commercial vehicles, strong EV strategy, robust domestic demand.
✔ Best Buy Range: ₹640-₹630
3. Kotak Mahindra Bank (₹1,900.75) – Target Price: ₹2,100
Why Kotak Mahindra Bank?
Kotak Bank has a well-diversified business across retail banking, asset management, and insurance. With a strong capital adequacy ratio and focus on digital transformation, the bank remains a long-term compounder.
✔ Key Strengths: Prudent risk management, digital banking push, diversified financial services.
✔ Best Buy Range: ₹1,800-₹1,850
4. ABB India (₹4,931.65) – Target Price: ₹6,200-₹7,000
Why ABB India?
ABB India’s expansion across automation, power, and renewables positions it well for India’s capex boom. With a robust balance sheet and high return on capital employed (ROCE), analysts project significant upside.
✔ Key Strengths: Exposure to core industries, strong balance sheet, premium product demand.
✔ Best Buy Range: ₹4,800-₹4,700
5. Asian Paints (₹2,179.95) – Target Price: ₹3,500
Why Asian Paints?
Asian Paints remains the undisputed leader in the paint industry, benefiting from brand equity, distribution strength, and innovation. Expansion into home decor will further drive revenue growth.
✔ Key Strengths: Market leadership, high margins, new product innovation.
✔ Best Buy Range: ₹2,100-₹2,000
6. Shree Cement (₹27,277.35) – Target Price: ₹32,670
Why Shree Cement?
As one of India’s most efficient cement manufacturers, Shree Cement benefits from cost optimization and sustainability initiatives. It has a strong balance sheet and is well-positioned for infrastructure growth.
✔ Key Strengths: Low-cost operations, high EBITDA margins, infrastructure-driven demand.
✔ Best Buy Range: ₹26,500-₹26,000
7. Supreme Industries (₹3,326.50) – Target Price: ₹5,000
Why Supreme Industries?
With rising demand in housing, infrastructure, and agriculture, Supreme Industries is expected to see strong volume growth over the next 3-4 years.
✔ Key Strengths: PVC price stabilization, strong industry tailwinds, capacity expansion.
✔ Best Buy Range: ₹3,000
8. Havells India (₹1,422.05) – Target Price: ₹1,820-₹1,850
Why Havells?
Havells is a dominant player in consumer durables and electrical products, benefiting from rural expansion and smart home solutions. Despite a short-term correction, it remains a strong long-term investment.
✔ Key Strengths: Strong brand, high demand for consumer durables, rural market penetration.
✔ Best Buy Range: ₹1,350-₹1,300
9. Granules India (₹461.55) – Target Price: ₹700
Why Granules India?
Granules India is set for robust growth with a strong pipeline of high-value pharma products and improved margins. North American expansion and demand for paracetamol will be key growth drivers.
✔ Key Strengths: Growing exports, cost efficiency, product diversification.
✔ Best Buy Range: ₹450-₹420
10. IPCA Laboratories (₹1,353.45) – Target Price: ₹1,980
Why IPCA Laboratories?
IPCA has a strong presence in both APIs and formulations, with a projected earnings growth of 27% CAGR over FY25-27.
✔ Key Strengths: Strong cost efficiency, new product pipeline, growth in exports.
✔ Best Buy Range: ₹1,250-₹1,200
Key Financial Ratios of Top Picks
| Stock | PE Ratio | ROCE (%) | Dividend Yield (%) | Debt-to-Equity |
|---|---|---|---|---|
| ITC | 22.5 | 26.1 | 2.3 | 0.07 |
| Tata Motors | 17.8 | 11.5 | 0.8 | 0.89 |
| Kotak Mahindra Bank | 30.2 | 15.3 | 0.6 | 0.02 |
| ABB India | 50.4 | 21.8 | 1.1 | 0.10 |
| Asian Paints | 64.5 | 27.9 | 0.8 | 0.03 |
| Shree Cement | 41.6 | 14.7 | 0.4 | 0.24 |
| Supreme Industries | 42.4 | 26.2 | 0.7 | 0.12 |
| Havells India | 48.9 | 22.5 | 1.0 | 0.13 |
| Granules India | 21.0 | 18.4 | 0.9 | 0.29 |
| IPCA Laboratories | 32.3 | 16.1 | 0.5 | 0.08 |
Final Thoughts
Despite market turbulence, investors can capitalize on these well-researched long-term stock opportunities. Each of these companies has strong fundamentals, robust growth potential, and promising upside over the next few years. Investors should consider accumulating these stocks during dips to maximize returns in the long run.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.