Aniket PujariStocks to buy for the long term: The Indian stock market benchmarks, the Sensex and the Nifty 50, ended with decent gains on Friday, February 6. On a weekly scale, both key indices rose by 1.5%, driven by a pro-growth Union Budget 2026, India-US trade deal, FII buying, and the RBI’s upward revision of GDP forecasts, along with a steady inflation outlook.
After seven consecutive months of selloff, foreign institutional investors (FIIs) have turned buyers of Indian stocks in the cash segment. In February so far, FIIs have bought Indian stocks worth ₹2,645 crore in the cash segment.
While market sentiment is improving, persisting geopolitical risks and weak earnings remain key overhangs for the market.
Experts expect the domestic market to witness volatility in the near term. They suggest buying quality stocks on dips for the long term.
Nandish Shah, AVP– PCG Research and Advisory, (Fundamental) Wealth Management at Motilal Oswal Financial Services, recommends the following five stocks for the long term, anticipating 12-30% upside potential. Take a look:
Varun Beverages (VBL) | Previous close: ₹439.05 | Target price: ₹570 | Upside potential: 30%
Shah pointed out that the calendar year 2025 was a challenging year for VBL, despite capacity additions, due to weather-related demand disruptions.
However, going forward, Shah expects VBL to improve its earnings momentum, aided by a scale-up in the international market (mainly in South Africa), scale-up of the snacking business from 2026, backed by the operationalisation of Morocco and Zimbabwe, and an expanding product portfolio.
Further, VBL has completed significant capacity additions in the last two years (40-45% increase in capacity), which remained underutilised in 2025 (due to disruptions).
“We expect that with normal weather conditions and higher capacity, VBL can deliver healthy volume growth in the coming years,” said Shah.
Bharat Electronics (BEL) | Previous close: ₹429.65 | Target price: ₹520 | Upside potential: 21%
BEL’s prospect pipeline remains strong with clear visibility across both near-term base orders and large strategic programs.
Key near-term opportunities include LCA Mk-1A orders of nearly ₹24 billion, Shatrughat EW of nearly ₹30 billion, NGC orders of nearly ₹20-30 billion in FY26 (with the balance nearly ₹100-120 billion by the first half of FY27), and a few additional large programs of nearly ₹20 billion, providing strong support to FY26 order inflows.
“BEL expects export opportunities to expand gradually, aided by the evolving India-EU defence cooperation, which could open new markets and joint development avenues over time. The company is targeting exports to reach nearly 10% of revenues in the long term, up from the current low single-digit contribution,” Shah noted.
Computer Age Management Services (CAMS) | Previous close: ₹722.40 | Target price: ₹840 | Upside potential: 16%
CAMS continues to dominate the mutual fund RTA segment with a high ROE profile and strong cash generation.
While near-term MF revenue growth had moderated due to price resets, profitability rebounded to new highs, with EBITDA and PAT scaling on the back of sustained market share, rising transaction intensity, and operating leverage.
Non-MF revenue expanded at a 26% CAGR over FY21–26, with estimates to reach nearly ₹2.2 billion+ by FY26, and contribution rising to 14.5% of total revenue (as of December 2025).
The management guides to double non-MF revenue over the next five years and target INR4b by FY29.
“We expect CAMS to deliver a CAGR of 11%, 11%, and 12% in revenue, EBITDA, and PAT, respectively, during FY25-28,” said Shah.
Syrma SGS Technology | Previous close: ₹868.60 | Target price: ₹1,000 | Upside potential: 15%
Shah said Syrma SGS Technology continued its strong operating performance, with EBITDA up nearly two times year-on-year (YoY) in Q3FY26. EBITDA margin expanded 350bp YoY due to a favourable business mix and operating leverage.
The order book continued to improve to ₹64 billion as of December 2025 (up nearly 21% YoY and 10% QoQ).
Moreover, the management has revised its guidance upwards with more than ₹5 billion of EBITDA in FY26, with revenue guidance of nearly ₹1.6 billion in Q4FY26.
Further, the company has guided for a 30% growth in revenue and EBITDA for FY27 (with EBITDA margins of 10%).
“We believe that the company’s long-term trajectory will continue to remain strong, backed by its focus on low-volume, high-margin business, an increase in exports, an increasing share of revenue in the industrial and automotive segments, a foray into bare PCB manufacturing through its JV, and inorganic expansion into new verticals, such as defence and solar inverters,” said Shah.
UltraTech Cement | Previous close: ₹12,722 | Target price: ₹14,200 | Upside potential: 12%
UltraTech’s management indicated a positive demand outlook, highlighting a multi-year infrastructure pipeline across all regions, led by roads, metros, railways, ports, airports and housing segments.
The cement company expects to operate at +90% capacity utilisation in Q4FY26. Further, it expects improvement in pricing, led by strong demand. Its phase IV expansion is on schedule and will be fully funded by internal accruals.
“It expects to achieve a net debt-to-EBITDA ratio of less than one time by FY26 end (versus 1.1 times as of December 2025 end). Integration of Kesoram and ICEM is progressing well, with a rapid brand transition. Cost improvement capex benefits are expected to reflect from Q4FY27,” said Shah.
Read all market-related news here
Read more stories by Nishant Kumar
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.
