In a comprehensive research note aimed at long-term investors, brokerage firm ICICI Direct has identified a curated list of seven high-potential stocks it believes are poised to deliver substantial returns by the year 2026. The analysis focuses on companies with strong fundamentals, resilient business models, and clear growth trajectories across diverse sectors.
ICICI Direct's Top Picks for Long-Term Portfolio
The brokerage's selection spans sectors including financial services, specialty chemicals, automotive, and infrastructure. The firm has provided detailed rationales and specific price targets for each stock, projecting a holding period until 2026. The recommended stocks are Bajaj Finserv, SRF, Mahindra & Mahindra (M&M), L&T, ICICI Bank, Bharti Airtel, and UltraTech Cement.
For Bajaj Finserv, ICICI Direct highlights its unique positioning as a financial conglomerate with interests in insurance (life and general) and lending through Bajaj Finance. The brokerage is bullish on the company's ability to capitalize on India's under-penetrated financial services market. It has set a price target of ₹2,500 per share, implying significant upside from current levels.
SRF, a leader in specialty chemicals and technical textiles, is favored for its strong research and development capabilities and expanding global footprint. The brokerage expects the company's chemicals business, particularly fluorochemicals, to be a key growth driver, supported by robust demand. A target price of ₹3,400 per share has been assigned.
Detailed Analysis of Other Key Recommendations
Mahindra & Mahindra (M&M) is recommended for its dominant position in the utility vehicle segment and a promising turnaround in its farm equipment division. The successful launch of new models and a healthy order book are seen as positive catalysts. ICICI Direct's target for M&M stands at ₹3,200.
The brokerage reaffirms its faith in infrastructure giant Larsen & Toubro (L&T), citing its unmatched order book, execution prowess, and diversified business model that benefits from the government's capital expenditure push. A target of ₹4,200 per share is projected.
Among financials, ICICI Bank itself is on the list, praised for its improved asset quality, strong digital banking initiatives, and consistent growth in retail loans. The brokerage sees it as a well-placed play on India's formalizing economy with a target of ₹1,350.
Bharti Airtel is selected as the preferred telecom play, expected to gain from industry consolidation, rising average revenue per user (ARPU), and growth in its digital services portfolio. The target price is set at ₹1,550.
Finally, UltraTech Cement, India's largest cement producer, is included due to its pan-India presence, cost leadership, and direct beneficiary status of the housing and infrastructure boom. ICICI Direct has a target of ₹11,500 for the stock.
Investment Strategy and Market Outlook
ICICI Direct's report emphasizes a "buy on dips" strategy for these stocks, suggesting investors accumulate them during market corrections to build a long-term portfolio. The 2026 horizon indicates the brokerage's conviction in these companies' multi-year growth stories, which are tied to broader economic themes like financialization, manufacturing growth (PLI schemes), and infrastructure development.
The recommendations come with the caveat that investors should have a minimum investment horizon of 2-3 years to potentially realize the outlined returns. The brokerage advises focusing on the fundamental strengths of each company rather than short-term market volatility.
This curated list provides a blueprint for investors looking to build a core portfolio of quality stocks with visible growth runways. As always, investors are advised to align these recommendations with their own risk appetite and conduct further research or consult financial advisors before making investment decisions.
