Stocks to buy: Indian equities remained under pressure in September, with the benchmark indices Nifty 50 and Sensex declining almost 6% each during the month. According to 360 ONE Capital Research, despite the sell-off in September, the domestic demand environment remains resilient.
“While the near-term growth outlook remains healthy, prolonged high oil prices, an adverse monsoon or persistently high global interest rates could pose risks to demand over the medium-term. The pace of margin normalisation will also remain an important monitorable over the coming quarters,” it noted.
Moreover, the brokerage pointed out that geopolitical uncertainty remains elevated. At the same time, higher global yields and a firmer dollar have made the external liquidity environment less supportive.
“We continue to favour a bottom-up, market-cap-agnostic approach. We remain overweight on Healthcare and power/energy-related themes, neutral on Industrials given elevated valuations and neutral on Financials, where valuations are reasonable but regulatory uncertainty remains an overhang,” it stated.
It believes broader market returns will increasingly track earnings growth, while bottom-up stock selection should continue to offer opportunities for alpha generation.
Top multicap picks
Against this backdrop, the brokerage has retained a focused list of 21 top multicap picks, with several stocks offering substantial potential upside from current levels.
Market cap (Greater than ₹800 bn): ICICI Bank, ITC, NTPC, Coal India, SBI Life Insurance Company and Aurobindo Pharma.
Market cap (Between ₹300 bn and ₹800 bn): National Aluminium Company, GlaxoSmithKline Pharma, The Supreme Industries and Navin Fluorine International.
Market cap (Between ₹100 bn and ₹300 bn): Neuland Laboratories, The Ramco Cements, Leela Palaces Hotels & Resorts, Jindal SAW, Usha Martin, Graphite India, CarTrade Tech, Shaily Engineering Plastics, Home First Finance Company India and BlackBuck.
Jindal SAW, SBI Life among top 360 ONE stock picks
360 ONE has maintained its BUY rating on Jindal SAW with a target price of ₹423, implying 52.2% potential upside. The brokerage expects strong order visibility, overseas growth opportunities and planned capex to support earnings and return on capital.
Jindal SAW has a consolidated order backlog of around 2 million MT, providing roughly 12 months of earnings visibility. The brokerage also pointed to the pending Saudi HSAW job-work order and expects normalisation of MENA shipments and domestic water infrastructure execution to support volume and earnings recovery.
Meanwhile, SBI Life Insurance Company is another major pick. 360 ONE has retained its BUY rating and target price of ₹2,380, against the current price of ₹1,696, indicating 40% potential upside. The brokerage highlighted the insurer’s distribution strength, particularly its relationship with State Bank of India, alongside the productivity of its agency network.
“SBI Life has unmatched distribution strength in the form of State Bank of India being the key distribution partner, and a productive agency force, both of which provide the company access to locations across the country,” said 360 ONE CM Research.
Meanwhile, ICICI Bank remains one of 360 ONE’s preferred banking stocks. The brokerage has a BUY rating with a target price of ₹1,800, compared with ₹1,322 currently, translating into 36.2% potential upside.
“ICICI Bank stands out as one of the most consistent performers within the banking space led by a robust retail/SME franchise both on the asset and the liability front, stable operating metrics, strong underwriting practices and execution,” it added.
Other stocks
ITC: 360 ONE has a BUY rating with a target price of ₹440, implying 67.3% upside from ₹263. The brokerage expects calibrated cigarette price increases, lower-cost tobacco inventory and cost efficiencies to support a recovery in cigarette profitability, while the Century acquisition provides an additional medium-term earnings catalyst.
NTPC: 360 ONE has set a target of ₹455, representing 40.9% upside from ₹323. Strong electricity demand, improving thermal utilisation, renewable capacity expansion and NTPC’s entry into nuclear power underpin the bullish view.
Coal India: The target price is ₹516, indicating 21.4% upside. The brokerage expects coal offtake to rise as power plants rebuild inventories, while higher e-auction premiums and a tight demand-supply backdrop could improve realisations and margins.
Aurobindo Pharma: The brokerage has a target of ₹1,840, translating into 8.4% upside. Eugia injectables, PenG, the biologics CDMO business, Lannett synergies and the CuraTeQ biosimilar pipeline are expected to drive future growth. Portfolio Update – BK – 03 10 2…
Small and mid-cap bets
National Aluminium Company: The target is ₹443, implying 16% upside. NALCO’s fifth-stream alumina refinery, higher production volumes and improving alumina realisations are expected to drive structural earnings growth.
GlaxoSmithKline Pharmaceuticals: 360 ONE has a target of ₹3,500, indicating 25.7% upside. Strong legacy brands provide revenue resilience, while specialty products such as Nucala, Trelegy, Zejula and Jemperli are expected to grow faster than the broader market. Portfolio Update – BK – 03 10 2…
The Supreme Industries: The target price is ₹4,661, offering 35.1% upside. The brokerage expects pipe volumes to recover, supported by plumbing demand, rural and infrastructure recovery, capacity additions and more stable PVC prices following the Minimum Import Price implementation.
Navin Fluorine International: 360 ONE has a target of ₹8,511, implying 3.2% upside. The company’s Advanced Materials expansion, Chemours partnership, R32 project and continued ₹7-10 billion annual capex are expected to provide long-term growth visibility.
Neuland Laboratories: The target is ₹24,120, representing 12.9% upside. Its expanding CMS pipeline of around 99 molecules, commercialisation of new molecules and opportunities in peptides are expected to drive growth.
The Ramco Cements: 360 ONE has a target of ₹1,276, implying 51% upside. A recovery in cement pricing, cost savings, premiumisation and the high-margin quartzite opportunity could significantly improve profitability.
Leela Palaces Hotels & Resorts: The target price is ₹620, offering 8.8% upside. The brokerage expects Leela to benefit from a structural demand-supply imbalance in luxury hotels, pricing power, premium RevPAR and a strong pipeline of new properties.
Usha Martin: The target price is ₹600, implying 20.2% upside. The brokerage expects the specialty wire-rope maker to benefit from its shift towards high-value customised products and planned capex supporting 10-12% annual core volume growth.
Graphite India: 360 ONE has a target of ₹971, representing 38.1% upside. Rising electric-arc-furnace steel capacity could lift graphite electrode demand, while industry capacity closures could create a supply-demand gap and support pricing.
CarTrade Tech: The target is ₹3,409, indicating 17.6% upside. Its integrated auto-tech ecosystem, leadership in online auto classifieds, deeper OEM/dealer integrations and strong operating leverage support the case.
Shaily Engineering Plastics: 360 ONE has a target of ₹3,550, implying 16.4% upside. Healthcare is expected to become the key growth engine, driven by GLP-1 drug-delivery devices, rising capacity and a growing share of higher-margin proprietary products.
Home First Finance Company India: The target price is ₹1,500, offering 37% upside. The brokerage expects around 26% AUM CAGR through FY27-28E, supported by branch expansion, recovering disbursements, stable spreads and technology-led operating efficiency.
BlackBuck: 360 ONE has set a target of ₹743, implying 22% upside. Its dominant FASTag business provides a cash-generative base, while telematics, financing, fuel and the emerging SuperLoads platform offer additional growth opportunities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
