Stocks to buy for the long term: Highlighting impressive Q1 results and a healthy growth outlook, brokerage firm Choice Equity Broking has picked 15 stocks to buy for the long term from the cement, building materials, and real estate spaces.
From the cement space, the brokerage firm has eight buy recommendations, while from the building materials segment, Choice Broking has picked five stocks to buy.
In the real estate space, the brokerage firm has two buy recommendations. There are two buy recommendations from the flexible workspace as well.
Cement stocks to buy
ACC | Buy | Target price: ₹2,475
“We maintain buy rating on with a target price to ₹2,475 as we factor in (i) EBITDA to grow at a CAGR of 15.5 per cent over FY25-28E, supported by our assumptions of volume growth at 8%/7%/6% and realisation growth of 2%/0.5%/0.5% in FY26E/FY27E/FY28E,” said Choice Broking.
Ambuja Cements | Buy | Target price: ₹700
The brokerage firm maintains a buy rating on , with a target price of ₹700.
It factors in ₹300 per tonne cost savings over FY25–28E from renewable energy and logistics efficiency, a higher premium product mix supporting realisations, and improved fundamentals driven by the turnaround of Sanghi, Penna, and Orient Cement assets, leading to a 488bps RoCE expansion.
Birla Corp | Buy | Target price: ₹1,650
“We upgrade to a buy with a target price of ₹1,650, as we raise our estimates for volume, realisation per tonne, EBITDA per tonne, and overall EBITDA, driven by sector tailwinds and company-specific factors such as nearly ₹200 per tonne expected Opex savings over the next few years from cost initiatives and premiumization efforts supporting strong realisations.
As a result, RoCE (ex-CWIP) is projected to expand by 709 bps, from 6.2 per cent in FY25 to 13 per cent in FY28E,” said Choice.
Dalmia Bharat | Buy | Target price: ₹2,620
“volume was slightly weak, while realisation per tonne of ₹5,194 was in line. Lower costs drove EBITDA per tonne to ₹1,261 per tonne, up ₹339 per tonne QoQ and slightly ahead of expectations. We maintain buy with a revised target price of ₹2,620, as we raise our estimates for volume, realisation, EBITDA per tonne, and overall EBITDA,” said Choice Broking.
JK Lakshmi | Buy | Target price: ₹1,175
Choice Broking has upgraded its rating to buy from add earlier on with a revised target price of ₹1,175 from ₹970 earlier, factoring in: (i) 4.4 MTPA capacity addition by FY28E (total 20.9 MTPA), (ii) 6 per cent volume growth in FY26–27E, (iii) ₹150 per tonne cost savings over the next three years, (iv) higher EBITDA and EBITDA per tonne, and (v) a robust EV/CE-based valuation framework, supporting a marginal ROCE expansion over FY25–28E.
Nuvoco Vistas | Buy | Target price: ₹560
Choice maintained a buy call on with increased target price of ₹560, supported by improved estimates on realization and EBITDA per tonne, driven by cost-saving, capacity expansion and premiumization efforts.
“We factor in ₹2100 crore value from the Vadraj acquisition, and adopt an EV/CE-based valuation framework to reflect stronger fundamentals,” said Choice Broking.
UltraTech Cement | Buy | Target price: ₹15,210
Choice retained a buy rating on with a revised target price of ₹15,210, factoring in (i) higher volume and EBITDA assumptions aided by Kesoram integration, (ii) cost optimization benefits, (iii) improved cement pricing, and (iv) a robust EV/CE-based valuation framework, reflecting a strong 725 bps ROCE expansion over FY25–28E.
Grasim Industries | Buy | Target price: ₹3,420
The brokerage firm has revised its target price for to ₹3,420.
It has raised Grasim’s standalone EBITDA estimates by nearly 12–13 per cent over FY26–28E, factoring in improved performance in the paints business, commodity segments, and B2B e-commerce.
“We now value the paints business at 2.5 times FY27E EV/Sales (nearly 1.5 times of ₹12,000 crore capex), standalone segments at 7–8 times EV/EBITDA, and mark to market our investments,” said the brokerage firm.
Building materials stocks to buy
Hindware Home | Buy | Target price: ₹375
Choice maintains its buy rating on and has increased its target price to ₹375 from ₹325 earlier.
Choice expects Hindware Home’s FY25-FY28E consolidated revenue and EBITDA CAGR of 12 per cent and 48 per cent, respectively.
“On our target price of ₹375, FY27E implied PB and PE multiples are 3.4 times and 31 times, respectively. Slowdown in construction activities due to external factors and sudden fall in PVC/CPVC prices as a result of various global dynamics are risks to our buy rating,” said the brokerage firm.
Greenply Industries | Buy | Target price: ₹425
Choice forecasts EPS to grow at a CAGR of 42.6 per cent over FY25-28E, based on volume growth of 7%/8%/10%, and realisation growth of 2% CAGR for the plywood segment, 15%/18%/19% volume growth and realisation growth of 1.2%/3.0%/3.0% in FY26E/27E/28E for the MDF segment and furniture JV revenue of ₹150 crore for FY28E.
Realty stocks to buy
Godrej Properties | Buy | Target price: ₹2,500
“We are constructive on due to its guidance for FY26E pre-sales of ₹32,390 crore (up 10 per cent YoY) on the back of a healthy launch pipeline spread across Gurgaon, Greater Noida, and Worli in Q2FY26/Q3FY26,” said Choice.
“The net debt-to-equity ratio improved to 0.26 in Q1FY26 from 0.71 a year earlier. This provides financial flexibility to expand its project pipeline, while most business development will still be funded through internal accruals,” said the brokerage firm.
Mahindra Lifespace Developers | Buy | Target price: ₹500
“Thane and Bhandup projects have a GDV (gross development value) of ₹7,000-8,000 crore and ₹12,000 crore, respectively, accounting for nearly 45 per cent of their total GDV of ₹45,000 crore. Thane and Bhandup markets are a sweet spot for due to its mid-premium to premium preference,” said Choice.
Sobha | Buy | Target price: ₹1,800
Choice pointed out that is gradually expanding beyond its Southern base, with a strong start in NCR, a growing presence in Kerala, and new investments in Pune and Hyderabad. The company also plans to enter the MMR market, though at an early stage.
The brokerage firm pointed out that Sobha recently raised ₹2,000 crore through a rights issue, which will be used to fund certain project-related expenses for ongoing and forthcoming projects, capex, acquisition of land parcels, and partial debt payment.
EFC | Buy | Target price: ₹465
Choice assigns an EV/EBITDA multiple of 10 times/10 times for FY 27E/ 28E (consolidated basis), which it finds reasonable given the growth rate, margin profile.
“On our target price of ₹465, FY27E implied P/BV multiple translates to 2.6 times. A broad-based slowdown in the domestic economy, cold startup funding, abating offshoring/GCC trend, and predatory pricing by larger competitors remain risks to our buy rating,” said Choice.
Awfis Space Solutions | Buy | Target price: ₹750
“We continue to maintain our target price of ₹750, implying an upside of 30 per cent. We upgraded to buy after the recent correction in the stock price. We see slowing growth in seat addition (FY25-28E CAGR of 12 per cent versus FY22-FY25 of 43 per cent),” said Choice.
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