Stocks to buy for long term: From ITC, TCS to ICICI Bank- Rahul Ghose of Hedged.in recommends 10 shares; do you own any?

Stocks to buy for long term: Despite strong volatility and key headwinds in terms of geopolitical issues, US tariffs, currency depreciation, and heavy foreign capital outflow, Nifty 50- the equity barometer- looks set to end the year with decent gains. So far this year, the Nifty 50 is up 10%, with stocks like Bajaj Finance, Eicher Motors, and Maruti Suzuki among the top gainers.
While the domestic market is already at record-high levels, it appears poised for a further healthy upside in 2027, driven by expected strong earnings growth, a potential India-US trade deal, valuation comfort, and favourable growth-inflation dynamics.
Experts highlight that the policy reforms, lower crude oil prices, robust government capex, recent FTA agreements and positive news flows on the US-India trade front have brightened the outlook for the Indian stock market.
Stock picks for long-term
While the medium-term outlook of the Indian stock market is bright, experts suggest betting on quality stocks to maximise the gains. Rahul Ghose, Founder and CEO of Octanom Tech and Hedged.in., suggests the following 10 stocks to buy for the long term:
ITC
Ghose highlighted that ITC continues to trade at a meaningful discount to most FMCG peers on both P/E and EV/EBITDA, despite having a solid, cash-rich balance sheet and an improving business mix across FMCG, hotels, and agri.
Its cigarettes business remains a strong cash generator, while the FMCG and hotels verticals are now growing at double-digit rates, providing healthier, long-duration growth.
Regulatory overhangs persist, but a large part of that risk is already reflected in valuations, leaving scope for steady earnings traction along with some re-rating potential.
"Technically, the best point of entry would be around the ₹370-360 range. Brokerages are projecting a one-year price target of ₹580," said Ghose.
Bank Of Baroda
Bank of Baroda (BoB) is one of India’s largest public sector banks and currently trades below its book value, with a P/B ratio of less than 1.
The bank’s growing focus on retail, MSME, and agriculture segments—which now account for more than 60% of its loan book—has strengthened both its deposit base and credit growth momentum.
Its digital platform, Bob World, continues to expand customer reach while driving cost efficiencies.
With credit demand reviving and interest rates expected to normalise, BoB appears well positioned for steady growth and potential upside from a valuation re-rating.
"Since Bank of Baroda shares are trading right near their all-time high level, a breakout entry would be recommended in this. A break above ₹300 could potentially take the stock to much higher levels. Target price of ₹400 looks achievable," said Ghose.
ICICI Bank
Among private-sector banks, ICICI Bank remains a key driver of India’s credit growth story across retail, corporate, credit card, and wealth management segments.
With macroeconomic conditions improving, interest rates trending lower, and credit demand increasing, the bank is poised to benefit from robust loan growth, improved margins, and stable asset quality.
"Its scale, diversified business model, and leadership across multiple verticals position it well for sustained long-term growth, while current valuations continue to offer a reasonable margin of safety. Brokerages project a price target of ₹1,641," said Ghose.
Indian Hotels
Indian Hotels is a high-quality play on premiumisation and structural uptrend in domestic and inbound travel.
The portfolio mix, brand strength, and pipeline provide multi-year revenue visibility; however, the stock trades at a rich multiple on earnings and book value compared to its historical performance and peers.
"From here, upside is more a function of sustained high growth and margin delivery than valuation re-rating, so position sizing and entry price become important. Institutional brokerage houses put the target of ₹980," Ghose said.
Lupin
Lupin has executed a strong turnaround, led by a ramp-up in key US launches and margin recovery, with recent quarters showing robust revenue and EBITDA growth.
The US pipeline, complex generics, and a healthier India portfolio provide decent medium-term visibility, although the base is now higher, and regulatory risk is an inherent part of the story.
Valuations factor in a good part of the recovery, but if Lupin can sustain double-digit earnings growth and avoid major compliance setbacks, there is still room for compounding
"Average price target for the stock ranges from ₹2,300-2,600 as per estimates," said Ghose.
ABB
ABB India is a clean play on industrial capex, factory automation, electrification and data-centre/renewable infrastructure.
The company operates an asset-light, high-ROCE model with strong cash generation and a solid order book, providing robust top-line and margin visibility over the next few years.
"The flip side is a premium valuation versus broader capital-goods peers, so this can be more of a growth compounder than a value pick," said Ghose.
Birlasoft
Ghose pointed out that Birlasoft sits in a sweet spot for ER&D and digital transformation services for manufacturing, BFSI, and hi-tech clients, where discretionary spending is gradually normalising.
Recent quarters have shown improving margins and steady revenue growth, accompanied by a healthy deal pipeline and a focus on higher-value services.
"Valuation is still at a discount to larger tier-1 IT names, so if execution stays consistent and client mining continues, there is reasonable potential for both earnings growth and some multiple catch-up. Brokerages forecast a price target of ₹506," said Ghose.
TCS
Tata Consultancy Services (TCS) remains a core, compounding play in global IT services, offering a sensible risk-reward after the recent price correction.
Large-deal wins (approximately $10 billion TCV in Q2 FY26) and a strong order book provide decent medium-term visibility once discretionary tech budgets normalise.
"At the current price near ₹3,150–3,200, the stock trades at a discount to its own peak multiples, offering room for mid-teens upside as growth normalises, assuming no major global macro shock," said Ghose.
"A reasonable one-year fair-value band for the stock, as per brokerage houses, is in the range ₹3,600-3,800," said Ghose.
Bajaj Auto
Bajaj Auto strikes a good balance between strong cash generation, a profitable premium motorcycle portfolio, and growing opportunities in EVs and exports.
Despite its recent outperformance, the stock’s valuations remain reasonable compared to its historical averages.
With new launches in the pipeline, an expected pickup in exports, and margin benefits from a richer product mix, earnings visibility remains strong. Plus, the company’s cash-heavy balance sheet supports continued healthy shareholder payouts.
"One-year price target as per brokerage houses is ₹10,200," said Ghose.
Lemon Tree Hotels
Lemon Tree Hotels has clear growth visibility from its pipeline of managed and owned rooms across key business and leisure markets.
Occupancies and ARR are structurally better than pre-COVID levels, and the pivot towards asset-light management contracts should improve ROCE over the cycle, even though leverage remains on the higher side.
"Valuations are no longer dirt cheap but are broadly in line with the improving quality of earnings, leaving room for compounding as new properties ramp up. Brokerages project one-year price target of ₹182-193," said Ghose.
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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.