Stocks to buy for the long term: The Indian stock market has started the financial year 2026-27 (FY27) amid a plethora of headwinds. Massive foreign capital outflow, higher crude oil prices driven by the , rupee’s weakness, and deteriorating macroeconomic outlook are keeping market sentiment fragile.
The near-term outlook of the market remains hazy due to the West Asian war. Oil prices have been at higher levels for over a month now, and experts believe that if they remain at the current level for more than two to three months, India’s inflation could rise by 55–60 basis points, and GDP growth may drop to near 6% from the current estimates of about 7%.
While risks are high, experts underscore that the current bearish trend is largely externally driven rather than fundamentally broken.
Rahul Ghose, the founder and CEO of Octanom Tech and Hedged.in, told Mint that domestic institutional investors have decisively stepped up, providing a strong floor. He added that earnings growth is expected to revert to a 13–15% trend in FY27, and improving valuations, after meaningful corrections, are rebuilding the long-term investment case.
Ghose said monetary easing may drive above-trend GDP growth of around 7.5% in FY27, while regulatory easing for the ease of doing business and new labour codes adds medium-term tailwinds.
However, for foreign capital to flow back aggressively, markets need a definitive de-escalation of the West Asia conflict, a cooling of crude oil prices, and stabilisation of the Indian rupee against the dollar.
“History suggests all three tend to happen faster than the market fears. Historical data from the 1990 Gulf War, 2003 Iraq War, and 2023 Israel-Hamas conflict consistently show that the Sensex delivers strong double-digit returns within 12 months as domestic macro cycles reassert themselves,” Ghose said.
“The income tax relief, GST rationalisation, and the 8th Pay Commission will further underpin consumption demand through the year. FY27 will reward those who hold their nerve,” Ghose said.
Top stocks to buy for the long term
Ghose shares his top 10 conviction picks across sectors, expecting healthy returns from them over the next 1 year.
Dixon Technologies | Previous close: ₹10,503.50 | 12-month target price: ₹15,000 | Upside potential: 43%
Ghose highlighted that net profit jumped 67.8% year-on-year to ₹287.26 crore in Q3 FY26, reflecting the rapid scaling of its business.
“The stock has corrected over 42% from its 52-week high, which, for a company with fundamentals this strong and a PLI-backed growth runway this long, is a gift. Entry into Apple’s iPhone supply chain, growing sub-assembly volumes, and expanding product categories across electronics make Dixon arguably the most compelling manufacturing story in India today,” said Ghose.
Infosys | Previous close: ₹1,276.80 | 12-month target price: ₹1,800 | Upside potential: 41%
” is trading around ₹1,300, with analyst consensus placing the 12-month target at ₹1,700–1,900, implying meaningful potential movement from current levels,” Ghose said.
Ghose underscored that the Q4FY26 results and FY27 revenue guidance are the near-term catalysts for the stock. The company has maintained a healthy dividend payout of 65.9% and a three-year ROE of 30.7%, reflecting solid capital discipline.
“GenAI implementation projects scaling from proof-of-concept to production across global clients is the medium-term growth engine. After muted years, deal flow is improving, and margins have room to recover. At the current prices, the stock is near its 52-week low — risk-reward is compelling for a 12–18-month horizon,” said Ghose.
Eternal | Previous close: ₹236.22 | 12-month target price: ₹310 | Upside potential: 31%
Ghose highlighted that (formerly Zomato) net profit jumped 72.88% year-on-year to ₹102 crore in Q3 FY26, with revenue rising consistently over 16 consecutive quarters.
“Blinkit is now the primary growth engine, scaling aggressively, and gaining market share. The food delivery business is throwing off healthy unit economics, and the IPL 2026 season is a meaningful near- term volume catalyst. This is no longer just a growth story; profitability is now firmly part of the narrative,” said Ghose.
Sun Pharmaceutical Industries | Previous close: ₹1,652.20 | 12-month target price: ₹2,100 | Upside potential: 27%
Ghose pointed out that speciality portfolio in the US, particularly dermatology drugs like Ilumya and Winlevi, is beginning to deliver meaningful revenue, which should drive a re-rating of the business.
“The branded generics franchise in India and emerging markets is a steady compounder. US FDA concerns have eased, and FY27 should be a year of accelerating profitability,” said Ghose.
Larsen & Toubro (L&T) | Previous close: ₹3,954.30 | 12-month target price: ₹4,900 | Upside potential: 24%
Ghose highlighted that order book has reached a record ₹5.79 lakh crore, marking a 22% increase. The deal pipeline gives extraordinary revenue visibility for the next two to three years.
“Fifteen years of tracking infrastructure cycles tells us that when the government’s capex intent is this strong and the order pipeline this deep, companies like L&T simply do not disappoint over a 12-to-18-month horizon,” Ghose said.
“The defence division growing at over 40% annually is an added bonus. Execution remains sharp, and international diversification, particularly in the Middle East, reduces domestic revenue concentration risk meaningfully. Brokerages have an overweight rating with a target of ₹4,910,” said Ghose.
Hindustan Aeronautics (HAL) | Previous close: ₹4,099.90 | 12-month target price: ₹5,000 | Upside potential: 22%
Ghose believes defence is a structural shift and no longer just a theme. India’s defence export ambitions add a dimension which was entirely absent five years ago.
” balance sheet is debt-free, cash flows are strong, and the government’s indigenisation push ensures order flows remain robust. The stock has corrected sharply from its 52-week high of ₹5,165, offering a much better entry point. The current correction is the entry opportunity,” said Ghose.
ICICI Bank | Previous close: ₹1,351.10 | 12-month target price: ₹1,650 | Upside potential: 22%
Ghose said of all the private sector banks, has arguably shown the most consistent improvement in its franchise quality.
“The bank’s capital adequacy ratio stands at 17.11%, NIM at 4.30%, gross NPA at just 1.53%, and net NPA at a very clean 0.37%. These key metrics that reflect the quality of the franchise,” said Ghose.
“Credit growth is recovering, NIMs are stabilising, and asset quality is among the cleanest in the sector. Analyst consensus across 30 research reports places the average 12-month target at ₹1,661,” Ghose said.
SBI Life Insurance Company | Previous close: ₹1,914.40 | 12-month target price: ₹2,300 | Upside potential: 20%
According to Ghose, India’s life insurance penetration remains among the lowest globally, and that gap is the opportunity.
” targets 15% APE CAGR over FY26–28, with stable VNB margins of 26–28% and 18% operating RoE expected, and analysts have set buy ratings with a target price of ₹2,400,” Ghose said.
“SBI Life benefits from the unmatched distribution muscle of State Bank of India, reaching geographies that private players cannot access economically. The product mix is shifting toward higher-margin non-par products, which will support margins over the medium term. The stock has corrected from its 52-week high, creating a good entry point ahead of what should be a strong FY27 for the sector,” said Ghose.
Bharti Airtel | Previous close: ₹1,870.90 | 12-month target price: ₹2,200 | Upside potential: 18%
Telecom is a sector where we have seen fortunes change dramatically, and Airtel has clearly emerged as the winner of India’s industry consolidation.
” has crossed 650 million customers and generated full year FY26 revenue of ₹1,74,558.9 crore with profit of ₹33,778.3 crore. ARPU expansion is the growth story — every tariff hike flows almost directly to the bottom line given the operating leverage in the model,” Ghose noted.
Ghose believes Africa operations add diversification that the market has not fully priced in.
“With 5G monetisation just beginning and enterprise revenues scaling, the next two to three years look meaningfully better than the last few,” said Ghose.
Titan Company | Previous close: ₹4,439.30 | 12-month target price: ₹5,200 | Upside potential: 17%
Ghose underscored that Q3FY26 numbers were exceptional.
“Revenue in Q3 FY26 rose 42% year-on-year to ₹24,915 crore, while net profit surged 61% to ₹1,684 crore- one of the company’s highest-ever quarterly growth performances, driven by vibrant festive demand, strong wedding season sales, and a powerful exchange programme,” said Ghose.
“The jewellery segment continues gaining market share from the unorganised trade- a
structural shift that still has years to run. Income tax relief and the 8th Pay Commission are meaningful tailwinds for discretionary spending. The stock is trading at a premium multiple, but Titan has historically justified that premium through consistent execution,” Ghose said.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of the expert, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary. Target prices are 12-month forward estimates based on current market context and analyst consensus.