Stocks to buy for long term: HDFC Bank, Bajaj Finance, Adani Power shares among 10 stock picks amid global trade war
The Indian stock market remained highly volatile amid the ongoing trade tensions between US and China, ignited by President Donald Trump’s tariff policies. The trade war between the US, the world’s largest consumer, and exporting nations is poised to create a consumer shock in the US, while producing countries are subjected to supply glut. Analysts expect this will likely trigger a deflationary environment globally, persisting until a new economic realignment takes place.
In this context, brokerage firm Ventura Securities believes India, with its consumption-driven economy, is expected to remain a relatively insulated and safer market amidst the global turmoil. Considering this outlook, the brokerage firm has identified 10 stocks to buy that it believes will help investors build a resilient and bullet-proof portfolio.
The stocks to buy include HDFC Bank, Fino Payments Bank, Bajaj Finance, Adani Power, Trent, Nippon Life India Asset Management, Indraprastha Gas Ltd, Krsnaa Diagnostics, PN Gadgil Jewellers, and NBCC India. The brokerage firm recommends these stock picks for a timeframe of 24 months, expecting an upside potential in the range of 11% – 295%.
HDFC Bank | Buy | Target Price: ₹2,350
Ventura Securities initiates coverage on HDFC Bank shares with a ‘Buy’ rating and a SOTP target price of ₹2,350 (2.8X FY27E P/BV), over the next 24 months.
With merger blues behind, there is visibility on recovery of metrics to pre-merger levels. Over FY24-FY27E, HDFC Bank is expected to deliver strong financial growth, with AUM and deposits growing significantly, while improving asset quality and profitability, the brokerage firm said.
Fino Payments Bank | Buy | Target Price: ₹856
Fino Payments Bank is poised to revolutionize banking and transform India’s financial landscape, said the brokerage firm. It initiates coverage on Fino Payments Bank shares with a ‘Buy’ rating and a target price of ₹856 (2.8X FY27E P/E), representing an upside of a massive 310% from Friday’s closing price over the next 24 months.
Bajaj Finance | Buy | Target Price: ₹10,205
According to analysts, Bajaj Finance is on a resilient growth path amidst credit cost pressures. The brokerage recommends ‘Buy’ rating and Bajaj Finance share price target of ₹10,205 per share.
Adani Power | Buy | Target Price: ₹806
Adani Power is India’s largest private pure-play thermal power producer, is strategically positioned with robust capacity expansion plans to address this critical demand. The brokerage firm recommends a ‘Buy’ rating on the Adani group stock. It has revised upward the DCF based Adani Power share price target to ₹806 (13.8X FY27 EV/EBITDA).
Trent | Buy | Target Price: ₹6,300
Trent is a proxy for India’s consumption story, said the brokerage firm. Trent is India’s leading fashion retailer primarily operating through two formats, Westside (mid-premium) and Zudio (fast-fashion), along with other brands and JVs. The broking house has a ‘Buy’ call on Trent shares, with a target price of ₹6,300 (140X FY27 P/E).
Nippon Life India AMC | Buy | Target Price: ₹694
Ventura Securities expects Nippon Life India AMC’s revenues, EBITDA and net profit to grow at a CAGR of 26%, 29% and 18% over FY24-27. EBITDA margin is expected to improve by 500 bps to 65%. Net margin is projected to decline by 1,200 bps to 55%, as FY24 saw a sharp increase in net gains on investments due to strong market performance. ROE is expected to improve by 1300 bps to 41%.
It initiated coverage on Nippon Life India stock with a ‘Buy’ call for a target price of ₹694 (24.2x FY27 P/E).
Indraprastha Gas | Buy | Target Price: ₹257
IGL’s overall volumes are expected to reach 5310 mmscm (11.4% CAGR) by FY27E. Over the same period, the brokerage firm expects IGL’s revenues to grow at a CAGR of 19.2% to reach ₹23,951 crore by FY27E.
It recommends a ‘Buy’ rating for IGL shares with a target price of ₹257 (7.3X EV/EBITDA FY27).
Krsnaa Diagnostics | Buy | Target Price: ₹1,741
Given the leading position of Krsnaa Diagnostics as diagnostics service provider, strong revenue outlook driven by ongoing capex and scope for profit margin expansion, the brokerage firm remains positive on the Krsnaa Diagnostics stock. It initiates coverage with a ‘Buy’ rating and a target price of ₹1,741 (14X FY27 P/E).
PN Gadgil Jewellers | Buy | Target Price: ₹768
PN Gadgil Jewellers is poised for further expansion with plans for more stores in India and internationally. Overall, PN Gadgil Jewellers is focused on leveraging its heritage, expanding its retail footprint, and enhancing its online presence to capitalize on the growing demand in India’s jewellery market, the brokerage firm noted.
It recommends a ‘Buy’ call with a target price of ₹768 (48X P/E FY25).
NBCC India | Buy | Target Price: ₹93
NBCC’s revenue, EBITDA, and Net Profit are expected to grow at a YoY rate of 13%, 15%, and 18%, respectively by FY25E. EBITDA and Net margins are projected to remain flat at 5.0% and 4.1%, respectively. Whereas return ratios – RoE and RoIC – are anticipated to improve by 80 bps to 20.6% and 60 bps to 32.4% by FY25E, said the brokerage firm.
It recommends ‘Buy’ call on NBCC shares with a target price of ₹93 (50x FY25E P/E).
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
