Domestic brokerage HDFC Securities believes bottom-up stock and sector specific opportunities will continue to reward nuanced investors in the coming year as well. Here are 10 stocks that offer compelling investment opportunities: seven well-established mega caps and three in mid-cap and small-cap categories that are likely to offer relatively limited downside and superior upside potential.
HDFC Securities recommends buying the stock in the Rs 347-362 range and has a target price of Rs 481 (34% upside from current levels). Ambuja is on track to add 10 MTPA capacity in FY27, taking installed capacity to 119 MTPA, with further debottlenecking expected to lift capacity to 134 MTPA by FY29-end. This should drive an estimated 8% volume CAGR over FY26–29E, supported by new grinding units at Dahej, Salai Banwa, Kalamboli, Bathinda, Jodhpur and Warisaliganj.
With a target price of Rs 234, the brokerage recommends buying the stock in the Rs 185-195 range (25% upside). The company is emerging as a key beneficiary of the renewed policy thrust on conventional generation, supported by its scale, diversified asset base and demonstrated execution capabilities. The forthcoming capacity addition is predominantly greenfield, with management indicating a selective approach to brownfield opportunities where they offer superior returns and execution visibility.
HDFC Securities recommends buying the stock in the range of Rs 389-405 and has pegged the target at Rs 490 (11% upside). A strong power-demand outlook for India and increased coal production could help CIL register sustainable volume growth over the next couple of years. Moreover, cost-control initiatives such as reducing manpower (employee costs account for 53-54% of overall costs) could expand margins.
With a target price of Rs 475 (26% upside), the brokerage firm recommends buying the stock in the Rs 368-378 range. BEL has been focused on cost-control measures and extensive indigenisation efforts to improve profitability, which could lead to the company achieving its margin guidance as well. We expect gross margin at 48.3%/48.4%/48.3% and EBITDA margin at 28.8%/29%/28.7% for FY27E/FY28E/FY29E, respectively.