Top stocks to buy for the long term: In line with its global peers, the Indian stock market has witnessed heightened volatility so far in April after US President Donald Trump announced sweeping tariffs on imports from more than 100 countries, triggering fears of a trade war.
The volatility index India VIX has soared 69 per cent in April so far after falling 9 per cent in March and 14 per cent in February.
The benchmark index, Nifty 50, is down about 5 per cent for the current month after a 6 per cent gain in the previous month.
Volatility is expected to remain high as market sentiment will swing to news flows surrounding Trump tariffs.
On Friday, April 11, the Indian stock market may see a strong gap-up opening as Trump has announced a 90-day pause on reciprocal tariffs.
Trump announced on Wednesday that he had authorised a 90-day pause and that the US had hiked China tariffs to a whopping 125 per cent.
Anticipating high volatility in the short term, experts say investors should focus on the long term and buy quality stocks at the current juncture.
Sneha Poddar, AVP, research analyst- broking and distribution at Motilal Oswal Financial Services, recommends buying the following five stocks for the long term. Take a look:
A key positive for ICICI Bank is its robust loan growth, with a sustained compound annual growth rate (CAGR) of nearly 17 per cent between FY22 and FY24, driven by strong momentum across retail loans, business banking (BB), and the use of analytics to optimise customer acquisition and risk assessment.
Strong asset quality with PCR (provision coverage ratio) of nearly 79 per cent and ₹13,100 crore contingency buffer, mitigate risks from rising unsecured loan delinquencies.
Credit costs are expected to normalise to 40–50bp by FY27E. NIM (net interest margin) stabilisation is anticipated at 4.25 per cent despite margin compression, supported by digital-led deposit growth outpacing industry averages despite CASA ratio dipping to 40.5 per cent in Q3FY25.
“Fee income dominance from retail and business banking (78 per cent share) and controlled cost-to-income ratio (nearly 39 per cent) will enhance profitability, complementing loan growth. We expect RoA (return on assets) and RoE (return on equity) of 2.2 per cent and 17 per cent, respectively, by FY27E,” said Poddar.
Shriram Finance offers a well-diversified product suite and has emerged as a strong player across all its product segments. It has demonstrated strong execution capabilities and asset quality resilience while navigating multiple credit/ economic cycles.
With a diversified lending portfolio, it is set to benefit from lower borrowing costs, which will enhance NIMs and profitability and help mitigate CV business cyclicality.
Shriram Finance has yet to fully utilise its expanded distribution network (resulting from the merger) to offer its customers a much wider product bouquet.
“For Q4FY25, we estimate disbursements of ₹45,300 crore and AUM (assets under management) at ₹2.65 lakh crore (up 18 per cent year-on-year), with stable credit cost at 2.2 per cent. We expect an 18 per cent AUM CAGR and 19 per cent PAT CAGR over FY24-27,” said Poddar.
Despite facing short-term headwinds from unfavourable weather and weakened consumption trends, Varun Beverages achieved nearly 12 per cent and 23 per cent year-on-year volume growth in the domestic market and consolidated basis, respectively, driven by deeper market penetration.
Varun Beverages is also strategically expanding into the food-snacking market, which has the potential to become a key long-term growth driver.
“For Q1CY25, we expect 29 per cent year-on-year volume growth and stable EBITDA margins, supported by rural refrigeration, wider distribution, and seasonal strength. With 18 per cent, 16 per cent and 27 per cent revenue, EBITDA and PAT CAGR, respectively, expected over CY24–26, expansion-led growth and recent stock correction make the risk-reward favourable,” said Poddar.
The Indian Hotels Company expects double-digit revenue growth in FY25, supported by strong demand across weddings, tourism, and MICE (meetings, incentives, conferences, and exhibitions) segments.
ARR (average room rate) and occupancy remain healthy, reflecting strong pricing power across key markets. Over 2,800 rooms are planned across spiritual tourism hubs like Ayodhya, Hampi, and Vrindavan, aligning with government efforts to promote tourism.
“FY25 revenue, EBITDA and adjusted PAT are expected to grow 31 per cent, 34 per cent and 26 per cent year-on-year. Q4FY25 revenue may rise 28 per cent year-on-year with nearly 35.1 per cent EBITDA margin,” said Poddar, noting that key cities (Mumbai, Delhi, Hyderabad, Bengaluru) are seeing sustained demand momentum.
Brent Crude has fallen to its four-year low at $60 per barrel amid US-China trade tensions and rising supply. This is beneficial for lubricant companies like Castrol, potentially leading to improved profit margins.
Castrol opened a technology centre in Patalganga equipped with blending and testing capabilities as part of its future plans for advanced EV and data centre testing.
Its lubricant business targets an above-industry average growth rate of 4-5 per cent.
The management is optimistic about India’s lubricant demand potential, which is driven by low car penetration. Castrol’s focus on brand building, distribution, and new products supports its market leadership.
“We estimate nearly 23 per cent EBITDA margin for CY25 and CY26, reflecting confidence in profitability and growth,” said Poddar.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of 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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