Stocks to buy for long term: The Indian stock market benchmark Nifty 50 looks set to wrap Samvat 2081 with muted gains. Weak earnings, US tariffs, foreign capital outflow and geopolitical uncertainties kept the domestic market under pressure during the year.
The Indian stock market underperformed global and emerging markets for the first time since the onset of the COVID-19 pandemic.
Brokerage firm Axis Securities pointed out that the underperformance of the Indian equities was largely due to the US policies and prolonged negotiation between the US and India tariffs versus the market expectations, depreciation of the Indian rupee, FII selling, delayed earnings recovery, and a lag in the reflection of fiscal and monetary benefits to the corporate earnings.
Axis Securities believes Samvat 2082 is poised to be an eventful and closely watched year for the Indian economy.
"Despite prevailing external headwinds, India’s domestic growth momentum remains resilient. Key macroeconomic indicators point toward a stronger performance in FY26 compared to FY25, with early projections suggesting an even more robust outlook for FY27," said Axis.
This could be an ideal time to accumulate quality stocks for the long term, with Diwali 2025 presenting a promising opportunity to do so.
Axis Securities has listed nine Muhurat picks for Diwali 2025, including Kotak Mahindra Bank, Federal Bank, JSW Energy, and Chalet Hotel. Let's take a look:
According to Axis, Rainbow is well-positioned to deliver healthy growth, supported by strong occupancy trends in mature hospitals, improving contributions from new hospitals, and its focused specialisation in paediatrics and maternity care.
"The company’s hub-and-spoke model provides scalability, while its asset-light expansion strategy ensures efficient capital deployment. Margin expansion is expected as new hospitals mature and operating leverage strengthens," said Axis.
The brokerage firm expects Rainbow to post double-digit revenue growth with sustained nearly 32–33 per cent EBITDA margins over the medium term, backed by disciplined execution and favourable industry tailwinds.
Axis said DOMS’ growth is supported by its 44-acre greenfield facility, expansion into pens, bags, toys, and diapers, as well as a distribution push toward 3–3.5 lakh outlets.
"The FILA partnership adds global reach and R&D strength. These initiatives underpin our FY25–28 revenue, EBITDA, and PAT CAGRs of 23 per cent, 22 per cent, and 25 per cent, respectively. We value the company at 58 times Mar’28E EPS," said Axis.
According to Axis, KEC has a well-diversified and robust order book, along with an L1 position, which provides healthy revenue visibility for the next 18-24 months. Moreover, the government’s emphasis on T&D (transmission and distribution) and its focus on civil and urban infrastructure bode well for the company moving forward.
"The stock is currently trading at 24 times and 17 times FY26E and 27E EPS, respectively, and we value it at 20 times FY27E EPS," said Axis.
"Chalet Hotels is well-positioned for sustainable growth, supported by its diversified portfolio and healthy cash flows from commercial assets," said Axis.
"The company expects to generate nearly ₹300 crore from the sale of remaining residential units, which will be deployed towards hospitality and commercial expansion, including the Taj at Delhi Airport, enhancing returns," the brokerage firm added.
"With strong brand partnerships, strategic locations, and favourable industry tailwinds, Chalet is expected to deliver robust occupancy, ARR growth, and long-term value creation. We value the stock at 21 times H1FY27E EV/EBITDA," said the brokerage firm.
Axis underscored that Minda Corporation is evolving from a conventional auto component manufacturer into a high-value, technology-driven mobility solutions provider.
"The company is backed by strong financials, sticky OEM relationships, rising profit contribution from Associates (notably Flash Electronics), and well-defined growth levers across both EV and ICE segments, making it a compelling long-term compounding opportunity," said the brokerage firm.
"The outlook remains positive, supported by robust new order wins, a strong order book, and management’s confidence in outperforming industry growth through both organic and inorganic initiatives. Over FY25–28E, revenue, EBITDA, and PAT are expected to grow at a CAGR of 13 per cent, 16 per cent and 22 per cent, respectively," said the brokerage firm.
Axis believes Kotak Mahindra Bank's focus on LAP, SME, and business banking verticals should enable healthy CA deposit accretion.
"We expect deposit growth will mirror credit growth, enabling the bank to maintain a steady LDR between 85-86 per cent. We value the bank’s core book at 2.5 times FY27E ABV and assign a value of ₹635 to the subsidiaries," said Axis.
The brokerage firm believes that Federal Bank has realigned its growth in the retail portfolio and is poised to drive strong growth from the second half onwards. The bank will also look to pursue strong growth in the mid-yielding segments.
"As the macro environment turns favourable, Federal Bank will look to accelerate growth in the higher-yielding segments. Given uncertain macros, Federal Bank expects to grow at 1.2 times nominal GDP in FY26," said Axis.
However, supported by improving consumption demand and favourable macroeconomic conditions, Federal Bank will aim to grow the book at 1.2-1.5 times nominal GDP on a steady-state basis.
"We expect Federal Bank to deliver a healthy 16 per cent CAGR credit growth over FY25-28E," said the brokerage firm.
Axis values Federal Bank at 1.4 times FY27E ABV and the subsidiary at ₹10.
According to Axis, the company is set to benefit from the growing energy storage space.
JSW Energy has a total locked-in power generation portfolio of 30.5 GW. The company aims to achieve 30 GW of total installed capacity (current installed capacity of 13.2 GW) along with 40 GWh of energy storage capacity by FY30 and achieve Carbon Neutrality by 2050, Axis noted.
"The stock is trading at 14 times 12-month forward consensus EV/EBITDA against the industry average of 12 times. We recommend a buy rating on the stock with a target price at ₹625, implying an upside potential of 15 per cent," said Axis.
Axis noted that Coforge is well-positioned for growth, given its multiple long-term contracts with leading global brands.
The company maintains a positive outlook, expecting recent deal wins to drive revenue growth. The management remains committed to setting new benchmarks in the evolving industry landscape, the brokerage firm said.
"We believe that the company remains on track to meet its long-term guidance and expect a CAGR of 25 per cent, 39 per cent, and 40 per cent for revenue, EBIT, and PAT over FY25–27E, respectively. The stock is currently trading at 40 times and 31 times FY26E/FY27E EPS," said Axis.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of the broking firm, 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.
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