Indian equity markets are witnessing a resurgence of investor confidence as analysts project a positive start to the year 2026. Brokerage firm Choice Broking has identified a confluence of global and domestic factors fueling this optimism, leading to a refreshed list of high-conviction stock recommendations for investors.
Market Tailwinds: Global Peace Hopes and Domestic Recovery
Choice Broking points to several key drivers for the upbeat sentiment. On the global front, the long-awaited US-India trade agreement is anticipated to materialize soon, which is expected to normalize US exports. Furthermore, hopes for a potential settlement in the Ukraine-Russia conflict are favorably reshaping global risk appetite.
Domestically, the foundation for growth appears solid. Improving credit transmission, a sustained upswing in corporate earnings, and expectations of a revival in private capital expenditure (capex) are collectively bolstering market morale. However, the brokerage cautions that while valuations in certain pockets remain elevated, the ongoing phase of time-correction is creating opportunities for new market leaders to emerge across specific asset classes and sectors.
Choice Broking's Revised High-Conviction Portfolio
The brokerage has made strategic adjustments to its model portfolio. It has removed four stocks: Data Patterns, Granules India, Gulf Oil Lubricants, and Zensar Tech. In their place, it has added Nazara Technologies, Shanti Gold, Sobha, and Ashok Leyland to its high-conviction list.
Here is a detailed look at Choice Broking's 20 top stock picks, complete with ratings, target prices, and the rationale behind each selection.
Detailed Analysis of Select Picks
1. Allied Blender & Distilleries (ABDL): Rated 'ADD' with a target price of ₹690, implying an 11% upside. The brokerage forecasts a revenue and net income CAGR of 15.5% and 33%, respectively, from FY25 to FY28E, driven by margin expansion and backward-integration projects.
2. Ashok Leyland: Rated 'BUY' with a target of ₹161. The company is praised for its financial strength, product leadership, and future-ready initiatives in premium trucks, buses, and electric vehicles through Switch India.
3. Bharat Dynamics (BDL): A 'BUY' call with a ₹1,965 target (28% upside). Seen as a strategic player in India's defence ecosystem, BDL is expected to see revenue compound at 30-40% CAGR over 3-5 years, backed by a strong order book.
4. Bharat Electronics (BEL): 'BUY' rated with a ₹500 target (20% upside). Its strategic role as a key electronics supplier for defence platforms and forays into AI and cybersecurity underpin its appeal.
5. Birla Corporation: Given a 'BUY' rating and a target of ₹1,650 (48% upside). The company's aggressive capacity expansion from 20 MTPA to ~27.5 MTPA by FY29E at a competitive cost is a key growth driver.
6. Coforge: 'BUY' recommendation with a ₹2,015 target (6% upside). The IT firm's strong large-deal momentum, including 10 deals in H1FY26, and focus on AI-led modernization support robust growth prospects.
7. Happiest Minds Technologies: 'BUY' rated, target ₹670 (35% upside). The company posted its 21st consecutive quarter of growth in Q2FY26, led by its Gen AI business unit, and added 30 new clients in H1FY26.
8. Hindware Home Innovation: 'BUY' call with a ₹430 target (33% upside). Valued at a conservative 9x EV/EBITDA, a significant turnaround in ROCE from 1.4% (FY25) to 19.1% (FY28E) is anticipated.
9. Jeena Sikho Lifecare (JSLL): 'BUY' rating, target ₹950 (32% upside). This pick offers exposure to India's fast-growing Ayurveda sector, with plans to expand operational beds from 2,570 to 7,000-10,000 in 3-5 years.
10. Lumax Auto Technologies: Rated 'ADD' with a ₹1,480 target. The company's growth is fueled by strategic acquisitions and a 55.9% YoY profit increase in Q2FY26.
11. Mahindra & Mahindra (M&M): 'BUY' recommendation, target ₹4,450 (19% upside). M&M has gained market share in key segments, holding 22% in MUVs and 46.1% in LCVs as of H1FY26.
12. Man Industries: 'BUY' call with a ₹600 target (31% upside). The brokerage values the company using an EV/Capital Employed framework, citing its strong ROCE profile.
13. Nuvoco Vistas Corporation: 'BUY' rated, target ₹560 (57% upside). ROCE is expected to near-triple from 3.9% in FY25 to 15.9% in FY28E, supporting the valuation.
14. Radico Khaitan: 'BUY' recommendation, target ₹3,340 (4% upside). The company is a play on India's growing premium spirits market, with a strong brand portfolio and backward-integrated operations.
15. Senores Pharmaceuticals: 'BUY' call, target ₹1,010 (25% upside). The company is entering a high-growth phase, with management guiding for ~50% revenue growth and the brokerage modelling 77% PAT growth in FY26E.
16. Shanti Gold: A new addition with a 'BUY' rating and ₹350 target (69% upside). It reported 10% YoY volume growth in Q2FY26 against an industry contraction, showcasing its strong franchise.
17. Sobha: Another new addition, rated 'BUY' with a ₹1,840 target (20% upside). FY26 and FY27 are expected to be launch-heavy years, driving pre-sales growth and improving EBITDA margins.
18. Supriya Lifescience: 'BUY' recommendation, target ₹1,030 (38% upside). A European CDMO contract and entry into peptide/GLP-1 intermediates diversify its revenue streams beyond core APIs.
19. Yatharth Hospital & Trauma Care: 'BUY' rated, target ₹1,050 (47% upside). Well-positioned for India's rising healthcare demand, its ARPOB at ₹32,015 in Q2FY26 offers strong growth potential as it remains below industry averages.
20. Nazara Technologies: The final new addition, with a 'BUY' rating and ₹390 target (59% upside). The gaming company is poised for mid-20s revenue growth, supported by international exposure, AI-driven productivity, and a expanding IP portfolio.
Investment Outlook and Disclaimer
Choice Broking's refreshed portfolio reflects a strategy of capitalizing on structural growth stories across defence, real estate, healthcare, consumer goods, and technology. While the overall market sentiment is positive, investors are advised to consider their own risk profiles and conduct thorough research.
Disclaimer: This analysis is for educational purposes only. The views and recommendations are those of the brokerage firm and individual analysts. Investors are strongly advised to consult with certified financial experts before making any investment decisions, as market conditions are dynamic and individual circumstances vary.
