Stocks to buy: The Indian stock market’s benchmark indices are witnessing renewed investor interest, with analysts remaining optimistic that the year 2026 with kick off with renewed optimism.
Choice Broking said that the long-awaited US-India trade agreement is likely to come to fruition soon, thus catapulting the US Exports back to normalcy and hopes for a Ukraine-Russia peace settlement are reshaping global risk sentiment favourably.
Back home, improving credit transmission, an upswing in corporate earnings and hopes of a pick-up in private capex keep the sentiment upbeat.
However, the brokerage believes that while valuations still appear overstretched, ongoing time-correction creates scope for market leadership to emerge in select asset classes and sectors.
Choice Broking’s Top High Conviction Bets
Commenting on its top stock to buy, Choice Broking has made adjustments to its high-conviction picks, with the deletion of four stocks – Data Patterns, Granules India, Gulf Oil Lubricants and Zensar Tech. In their place, it has added Nazara Tech, Shanti Gold, Sobha and Ashok Leyland.
Here’s a look at their top picks
1. Allied Blender & Distilleries | Rating – ADD | Target Price: ₹690 | Upside scope: 11%
On the back of sustained margin expansion through H1FY26, Choice Broking now forecasts revenue and net income to grow at 15.5% and 33% CAGR, respectively, over FY25-FY28E. Additionally, backwards-integration projects, including malt and ENA capacities, reinforce the medium-term margin trajectory, the brokerage added.
“We, therefore, value ABDL at ₹690 using the DCF approach, while maintaining our ‘ADD’ rating. Our target price implies a PE of 55x / 42x for FY27E / FY28E,” it said.
2. Ashok Leyland | Rating – BUY | Target Price: ₹161 | Upside scope: NIL
Ashok Leyland continues to differentiate itself through financial strength, product leadership and operational discipline. “The premiumisation pipeline, new high-power trucks, 13.5m/15m buses and accelerating EV performance through Switch India (EBITDA and PAT positive in H1FY26) add future-ready optionality,” Choice analysts noted. It expects Ashok Leyland to accelerate profitable growth, supported by premium launches, robust exports and strengthening contribution from non-truck segments.
The brokerage maintains a positive outlook on Ashok Leyland stock, maintaining our ‘BUY’ rating, with a target price of ₹161.
3. Bharat Dynamics | Rating – BUY | Target Price: ₹1,965 | Upside scope: 28%
The brokerage said Bharat Dynamics is uniquely positioned in India’s defence ecosystem, with its strongest moat being in the missile and air defence domain. In the brokerage’s opinion, Bharat Dynamics is not just another PSU defence manufacturer – it is a strategic enabler of India’s deterrence capability. With a growing order book and a clear policy tailwind, we expect revenue to compound at a healthy 30-40% CAGR over the next 3-5 years, supported by improving margin as scale builds, it said.
4. Bharat Electronics | Rating – BUY | Target Price: ₹500 | Upside scope: 20%
Choice Broking said that electronic components contribute approximately 30-60% of the cost of defence equipment, depending on the platform type. And Bharat Electronics holds a strategic position in India’s defence sector, catering to all arms of the armed forces and serving as a key supplier to major defence companies. The company’s ability to secure independent contracts from other DPSUs and expand into new technological domains, such as AI and cybersecurity, further strengthens its investment appeal, said Choice Broking.
5. Birla Corporation | Rating – BUY | Target Price: ₹1,650 | Upside scope: 48%
Birla Corporation is undertaking a robust capacity expansion program, targeting a ~38% increase in cement capacity, from 20MTPA in FY25 to ~27.5 MTPA by FY29E. The project is being executed at a highly competitive capital cost of USD 67/tonne, while maintaining financial prudence, with net debt-to-EBITDA expected to remain below 2x.
This expansion positions the company well for long-term growth, with our assumption, which already factored in 5 MTPA, slated for commissioning by FY28E, said the brokerage.
6. Coforge | Rating – BUY | Target Price: ₹2,015 | Upside scope: 6%
Coforge continued to build on its large-deal momentum, securing 10 large deals in H1FY26 as compared to 14 deals in FY25, underscoring its improving win rate and deal pipeline with growing traction in AI-led modernisation deals, especially in North America.
The brokerage said Coforge would focus on driving robust growth in the next 2-3 years supported by both organic and inorganic initiatives, despite prevailing macro uncertainties.
7. Happiest Minds Technologies | Rating – BUY | Target Price: ₹670 | Upside scope: 35%
Happiest Mind Technologies posted its 21st consecutive quarter of QoQ growth in Q2FY26 since its IPO, which was led by 18.8% QoQ growth in the Gen AI Business Unit (GBS) and 7.7% QoQ growth in the Product & Digital Engineering Services unit. The company continued its transformational makeover amid market uncertainty, resulting in 30 new client additions in H1FY26. The new clients represent incremental revenue potential of about USD 50-60 Mn over the next 3-4 years.
8. Hindware Home Innovation | Rating – BUY | Target Price: ₹430 | Upside scope: 33%
Choice Broking values Hindware Home Innovation on a one-year forward (blend of FY27E-FY28E) EV/EBITDA multiple of 9x, which, the brokerage believes, is conservative, given the significant turnaround anticipated in ROCE from 1.4% in FY25 to 19.1% by FY28E. It has a target price of ₹430, FY28E implied PB/PE multiples are 3.2x/19x.
9. Jeena Sikho Lifecare I Rating – BUY I Target Price: ₹950 | Upside scope: 32%
Investing in JSLL offers exposure to India’s fast-growing Ayurveda and alternative healthcare sector, said the brokerage. The company has scaled up its healthcare presence to 2,570 operational beds across 100+ cities, with plans to expand to 7,000-10,000 beds in 3-5 years. Additionally, its OTC Ayurvedic products pipeline targets a ₹500 crore market in the next two years, supported by clinical trials and pan-India distribution. With proven execution, diversified growth drivers (hospitals + products) and robust demand for natural healthcare, JSLL presents a compelling long-term investment opportunity, it added.
10. Lumax Auto Technologies I Rating – ADD I Target Price: ₹1,480 | Upside scope: -2%
Choice Broking believes that Lumax Auto stands out in India’s automobile industry owing to its robust financial performance, with consolidated revenue at ₹11,564 million and a 55.9% YoY profit increase in Q2FY26.
The company’s aggressive growth strategy – driven by strategic acquisitions, such as Greenfuel in the CNG fuels space and the full consolidation of IAC India – positions it at the forefront of emerging mobility solutions.
11. Mahindra & Mahindra I Rating – BUY I Target Price: ₹4,450 | Upside scope: 19%
M&M has strengthened its position in India’s auto industry with consistent market share gains in key segments, said Choice Broking. As of H1FY26, the company has expanded its MUV market share to 22.0%, capitalising on the rising demand for utility vehicles. In the commercial segment, M&M leads with a 46.1% market share in the LCV segment, H1FY26.
“With a well-diversified portfolio across high-growth categories, M&M is well-positioned to sustain its growth momentum and capitalise on evolving consumer preferences,” the brokerage opined.
12. Man Industries I Rating – BUY I Target Price: ₹600 | Upside scope: 31%
Choice Broking has a 1-year forward target price of ₹600 per share for Man Industries.
“We now value MAN on our EV/CE framework, where we assign an EV/CE multiple of 1.30/ 1.30x for FY27E/ 28E, which, we believe, is conservative, given its strong ROCE profile even under reasonable assumptions. This valuation framework gives us the flexibility to assign a commensurate valuation multiple based on an objective assessment of the quantifiable forecast financial performance of the company,” it said.
13. Nuvoco Vistas Corporation I Rating – BUY I Target Price: ₹560 | Upside scope: 57%
Choice Broking arrived at a 1-year forward target price of ₹560/share for NUVOCO. We value the company using our EV/Capital Employed (EV/CE) framework, assigning a multiple of 1.6x for both FY27E and FY28E, said the brokerage. This valuation remains conservative, considering the expected near-tripling of ROCE, from 3.9% in FY25 to 15.9% in FY28E, based on reasonable operational assumptions.
14. Radico Khaitan I Rating – BUY I Target Price: ₹3,340 | Upside scope: 4%
Investing in Raidico Khaitan offers exposure to India’s growing Premium and Popular Spirits market, said the brokerage, as the company has built a strong brand portfolio, with several Prestige & Above brands leading revenue contribution, supported by a wide distribution network across retail, on-premise and international markets.
“Additionally, its backwards-integrated operations ensure supply security, cost-efficiency and margin support. With proven execution, a diversified portfolio and operational scale, RDCK presents a compelling investment opportunity,” said Choice Broking.
15. Senores Pharmaceuticals I Rating – BUY I Target Price: ₹1,010 | Upside scope: 25%
Choice Broking believes that Senores Pharma is entering a high-growth phase led by earnings acceleration. The management has guided for ~50% revenue growth, led by differentiated launches in high-growth, low-competition therapies with CGT-linked exclusivity.
Additionally, with injectables capex nearing completion, Senores is set to enter its monetisation phase, driving operating leverage and supporting a sharp step-up in profitability, as per Choice, with the brokerage modelling in a 77% PAT growth in FY26E.
16. Shanti Gold I Rating – BUY I Target Price: ₹350 | Upside scope: 69%
Choice believes Shanti Gold’s entrenched franchise across these markets offers a durable competitive moat. Its product mix is closely aligned with regional buying behaviour, allowing the company to consistently capture high-value customers, preserve pricing discipline and sustain earnings visibility, it added.
“This has already translated into outperformance, as evidenced by 10% YoY volume growth in Q2FY26, even as the broader gold jewellery industry reported a YoY contraction in demand.”
17. Sobha I Rating – BUY I Target Price: ₹1840 | Upside scope: 20%
Choice Broking expects FY26 and FY27 to be a launch-heavy year, which will drive healthy pre-sales growth for realty major Sobha.
“Revenue recognition of 4 MSF worth of deliveries in FY26E/27E would materially lift reported financials. EBITDA margin (reported) would gradually move up as better-priced and higher-margin projects start getting completed and get recognised in the reported financials,” said the brokerage.
18. Supriya Lifescience I Rating – BUY I Target Price: ₹1,030 | Upside scope: 38%
A long-duration European CDMO contract and early participation in fast-growing peptide/GLP-1 intermediates position Supriya to diversify beyond core APIs into more scalable, stickier, and higher-value opportunities, while its Europe-heavy mix reduces tariff and pricing risks, said Choice Broking.
Moreover, Supriya has consistently delivered industry-leading EBITDA margins, supported by a deeply integrated cost structure and dominant presence in niche anesthesia and CNS APIs, enabling stable pricing and profitability even through API market cycles, added the brokerage.
19. Yatharth Hospital & Trauma Care I Rating – BUY | Target Price: ₹1,050 | Upside scope: 47%
Yatharth is well-placed to cash in on India’s rising healthcare demand through strategic expansion and stable EBITDA margin, believes the brokerage. ARPOB has grown 16% in two years to ₹32,015 in Q2FY26. However, it’s still below the industry’s ₹50,000-75,000 range, thus offering strong growth potential as brand visibility improves, as per Choice. “At 20x EV/EBITDA, the stock offers an attractive long-term play on structural healthcare growth in India.”
20. Nazara Technologies I Rating – BUY I Target Price: ₹390 | Upside scope: 59%
A sound foundation strengthens near-term earnings, while the portfolio reset ensures a cleaner P&L and no further legacy drag. “With rising international exposure, deepening monetisation, stronger publishing capabilities and AI-driven productivity, NAZARA is poised to sustain mid-20s revenue growth. A renewed brand identity and expanding global IP portfolio further strengthen its long-term investment appeal, supporting a BUY rating with a TP of ₹390,” opined Choice.