Stocks to buy for long term: The domestic stock market witnessed a sharp and sudden drop in the final hour of trade on Friday, 29 May, which dragged the benchmarks, the Sensex and the Nifty 50, down by over 1% each.
Market sentiment remains cautious amid persistent uncertainty over the final contours of a potential US-Iran peace deal. While US President Donald Trump is expected to decide on a proposal to extend the ceasefire with Iran, media reports suggest that the two countries have yet to reach common ground on key issues, including the reopening of the Strait of Hormuz and Tehran’s nuclear programme.
Experts say investors should avoid predicting the course of the market and focus on stock-specific opportunities.
Pankaj Pandey, the head of research at ICICI Securities, says investors should buy quality stocks on dips. He recommends the following five stocks for the next one-two years:
Stock picks for long term
Artemis Medicare Services | Previous close: ₹273.36 | Target price: ₹340 | Upside potential: 24%
Pandey pointed out that Artemis Medicare Services is a healthcare venture launched by the promoters of the Apollo Tyres Group, commanding an industry-leading ARPOB of ₹82,435 per day. It derives nearly 32% revenues from international patients.
From the current operating capacity of a 700-bed super speciality hospital in Gurugram, it is planning to almost triple the bed capacity from current levels of 700 beds to nearly 2,000+ beds in the next 3-4 years by brownfield expansion and O&M agreements.
“We expect Artemis to deliver a revenue CAGR of nearly 28% during FY26-FY28E, aided by higher footfalls from the capacity expansion and improvement in valuation as the revenue concentration risk reduces,” said Pandey.
VA Tech Wabag | Previous close: ₹1,527.80 | Target price: ₹1,930 | Upside potential: 26%
Pandey pointed out that VA Tech Wabag’s order backlog stood at a robust ₹17,235 crore at the end of FY26, growing 26% YoY and implying revenue visibility of more than 4 times FY26 revenue, significantly higher than the company’s internal threshold of maintaining order book at nearly 3 times annual revenue.
Wabag continues to focus on selective bidding, technology-led differentiation and disciplined execution rather than aggressive low-margin growth.
“The company reiterated EBITDA margin guidance of 13–15%, supported by increasing contribution from high-margin desalination, industrial water and O&M projects. We expect Revenue and PAT to grow at 17.6% and 27% CAGR over FY26-FY28E,” said Pandey.
Tata Steel | Previous close: ₹208.02 | Target price: ₹270 | Upside potential: 30%
Pandey highlighted that Tata Steel, one of India’s largest steel producers, delivered a healthy Q4FY26 performance with EBITDA gains of nearly ₹2,500 per tonne, supported by higher domestic steel prices (up nearly ₹10,000 per tonne from the December 2025 low of nearly ₹46,500 per tonne).
Going ahead, it has guided for realisation improvement of nearly ₹6,000 per tonne in Q1FY27, likely to drive EBITDA gains of nearly ₹3,500 per tonne, the highest among domestic peers.
Additionally, CBAM implementation and import quota restrictions are likely to support profitability across the Netherlands and UK operations. Furthermore, it aims for domestic crude steel capacity expansion to nearly 45-50 MTPA by FY32 (versus current nearly 27.4 MTPA), providing long-term growth visibility, said Pandey.
Mahindra & Mahindra | Previous close: ₹3,045.60 | Target price: ₹4,000 | Upside potential: 31%
Mahindra & Mahindra (M&M) is a conglomerate with presence in auto, IT, financial services, etc., among others. It is India’s largest tractor manufacturer (43.6% FY26 market share) and second largest CV, second largest PV maker (28.2%, 14.2% FY26 market share).
“M&M’s auto business remains on a strong trajectory, driven by the continued outperformance of its SUV portfolio and revival in LCVs. It presents a compelling investment case driven by a rare combination of strong demand visibility and a deep product pipeline,” said Pandey.
“With capital efficiency to the core, capacity additions underway in the SUV space, we continue to be positive on M&M,” Pandey said.
Engineers India | Previous close: ₹231.70 | Target price: ₹315 | Upside potential: 36%
Pandey pointed out that Engineers India (EIL) ended FY26 with a record order book of nearly ₹15,109 crore (+29% YoY) led by strong consultancy inflows (nearly ₹6,010 crore) and large international wins, providing healthy execution visibility over the next 3-5 years.
FY27 revenue growth of nearly 10-15% with consultancy business likely sustaining 15-20% growth trajectory, supported by execution ramp-up of mega projects and healthy domestic hydrocarbon capex pipeline, refinery expansions and coal gasification opportunities.
“We expect revenues and PAT to grow at a CAGR of nearly 16.2% and 17.8% over FY26-FY28E, and EBITDA margins are also expected to expand from 9.1% to 16.2% over FY24-FY28E, given that consultancy forms nearly 72% of backlog,” said Pandey.
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Disclaimer: This story is for educational purposes only and does not constitute investment advice. 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.
