RIL, HDFC Bank, ITC among top 5 long-term stock picks: Experts

Despite recent market volatility, long-term investors have reason to remain optimistic. Ajit Mishra, Senior Vice President of Research at Religare Broking, has identified five high-quality stocks poised for strong performance in the coming financial year (FY26). His picks include Reliance Industries, HDFC Bank, ITC, HDFC Life Insurance, and Computer Age Management Services (CAMS). These stocks offer significant growth potential and resilience amid market uncertainties.

Market Overview

The Indian stock market has experienced fluctuations over the past year, with the Nifty 50 index declining by 16% from its peak due to global economic concerns. However, March saw a sharp recovery, with the index gaining over 6%, driven by valuation comfort, foreign investor inflows, and improving macroeconomic indicators. While uncertainties such as trade tensions and the upcoming Q4 earnings season persist, experts believe that high-quality stocks remain attractive investment options for long-term gains.

Ajit Mishra’s Top 5 Stock Picks for FY26

1. Reliance Industries (RIL)

Previous Close: ₹1,275.10

Target Price: ₹1,570

Upside Potential: 23%

Key Growth Drivers:

Strong performance in petrochemicals, refining, retail, and telecommunications.

Jio’s expansion into 5G, AI, and IoT services expected to drive future revenue growth.

Significant investments in renewable energy, including a ₹75,000 crore commitment for battery and electrolyzer manufacturing.

2. HDFC Bank

Previous Close: ₹1,828.20

Target Price: ₹2,065

Upside Potential: 13%

Key Growth Drivers:

India’s largest private sector bank with a diversified presence across financial services.

The merger with HDFC is expected to unlock value through mortgage cross-selling and cost efficiencies.

Improving asset quality, stable loan mix, and strong market positioning offer long-term stability.

3. ITC

Previous Close: ₹409.75

Target Price: ₹548

Upside Potential: 34%

Key Growth Drivers:

Diversified business across FMCG, cigarettes, hotels, agri, and paper products, ensuring stability.

Strong free cash flow and high dividend payout make it attractive for income-focused investors.

Expansion in premium FMCG categories and distribution network driving market share gains.

4. HDFC Life Insurance

Previous Close: ₹685.70

Target Price: ₹870

Upside Potential: 27%

Key Growth Drivers:

India’s second-largest private life insurer with industry-leading margins and strong persistency ratios.

Extensive distribution network with a solid presence in tier-2 and tier-3 cities.

Expected margin recovery from FY26 as regulatory concerns ease.

5. Computer Age Management Services (CAMS)

Previous Close: ₹3,723.35

Target Price: ₹4,390

Upside Potential: 18%

Key Growth Drivers:

Dominant market leader in mutual fund transaction processing with a 68% share of MF assets under management.

Expanding into new segments like AIFs, PMS, NPS, and fintech solutions.

Recently secured key mandates from Jio BlackRock MF, Pantomath MF, and Choice MF, reinforcing market leadership.

Investment Outlook

Ajit Mishra believes that while short-term market movements may remain volatile, focusing on fundamentally strong companies with growth potential is the best strategy for long-term investors. These five stocks are well-positioned to navigate economic uncertainties and deliver solid returns in FY26.

Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions.