Stocks to buy for long term: Frontline indices, the Sensex and the Nifty 50, jumped sharply by 3% in morning trade on Wednesday, April 1, influenced by positive global cues amid reports suggesting the US-Iran war could end in the next few days.
According to reports, US President Donald Trump has said the US military attacks on Iran could end within two to three weeks.
However, despite the positive signals, crude oil prices remained elevated, which remains a real worry for the Indian economy and stock market.
Brent crude futures rose by 2% to trade near $105 per barrel, after declining 3% on Tuesday.
It could be too early to say that the market is ready for a sustained rally. However, experts believe that the worst of the West Asian conflict could be over, and this is the right time to buy quality stocks that are available at lower prices.
Stock picks for long term:
Sneha Poddar, VP of research- wealth management at Motilal Oswal Financial Services, recommends the following five stocks to buy now:
Max Financial Services | Previous close: ₹1,490.70 | Target price: ₹2,200 | Upside potential: 48%
Poddar pointed out that Max Financial has been delivering sustained industry-leading growth with APE growth of 30% YoY in Q3FY26, which led to 35% YoY increase in VNB, with margins expanding to 24.1%.
She added that the company’s management continues to target 300–500bps faster growth than the industry, with FY26 growth likely trending ahead of earlier guidance.
“A rising contribution from high-margin protection, non-par savings and annuity segments (protection and health APE +57% YoY) is steadily improving the earnings mix and supporting VNB margin expansion,” said Poddar.
“Strong traction in proprietary and non-Axis bancassurance channels, improving long-term persistency trends, and nearly 17% operating RoEV provide confidence in sustainable compounding. At the current valuations, the stock offers a compelling risk-reward, supported by improving VNB margins and strong RoEV,” Poddar said.
ICICI Bank | Previous close: ₹1,205.90 | Target price: ₹1,750 | Upside potential: 45%
Poddar highlighted that ICICI Bank continues to deliver a well-rounded performance, supported by healthy loan growth, a strong liability franchise, and robust asset quality.
“Operating leverage and fee income are emerging as key profitability drivers, while asset quality remains strong with controlled credit costs (nearly 45–50bps). Overall, the bank is well positioned to deliver steady earnings growth, with PAT CAGR of nearly 16% and RoA and RoE of 2.3% and 16.4%, respectively, over FY26–28,” said Poddar.
Tata Power Company | Previous close: ₹378.75 | Target price: ₹455 | Upside potential: 20%
According to Poddar, record electricity consumption driven by early heatwaves and strong industrial activity is supporting power demand.
She said Tata Power’s Odisha discoms have turned profitable, with strong operational rankings, improved cash collections, and the ability to reinvest in growth segments.
“The Mundra project has been a key drag on earnings. However, the expected finalisation of the supplemental power purchase agreement with Gujarat could enable plant restart before the summer peak, restoring capacity payments and supporting a sharp earnings recovery,” said Poddar.
“With a nearly 5.2 GW renewable pipeline and plans to add 2.5-3 GW capacity in the next year, the company is entering a strong execution phase. Its high-yield cell and module manufacturing capabilities provide cost advantages and support growth in the rooftop solar segment,” Poddar said.
Aurobindo Pharma | Previous close: ₹1,304.40 | Target price: ₹1,500 | Upside potential: 15%
Poddar highlighted that Aurobindo Pharma is strengthening its presence in the Penicillin-G (Pen-G) value chain through deep backward and forward integration, supported by scale and policy tailwinds.
“With capacities of 15,000 TPA (Pen-G) and 5,400 TPA (6-APA), alongside process efficiencies and captive infrastructure, the company is well-positioned on the cost curve,” said Poddar.
“Government-imposed minimum import prices further enhance competitiveness, enabling import substitution in a largely import-dependent market. The project is expected to generate EBITDA of ₹5.5–6.6 billion, supporting a projected PAT CAGR of nearly 21% over FY26–28,” Poddar said.
IPCA Laboratories | Previous close: ₹1,601.20 | Target price: ₹1,820 | Upside potential: 14%
Poddar said IPCA Laboratories is witnessing improved growth visibility driven by a recovery in its domestic formulations business and a gradual pickup in exports.
She highlighted that the company is strengthening its domestic portfolio through therapy expansion in cardiology, pain management, and entry into high-end dermatology, while reinforcing key brands like Zerodol.
“Export growth is supported by increasing traction in branded markets and a steady ramp-up in generics, aided by product relaunches in the United States and participation in European tenders,” said Poddar.
“Improving operating leverage, portfolio optimisation, and better execution across segments position the company for steady earnings growth,” Poddar said.
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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.
