In an era of stock market volatility, geopolitical tensions, and shifting economic winds, long-term investors are seeking anchors stocks that not only weather storms but thrive through them. Rahul Ghose, Founder and CEO of Octanom Tech and Hedged.in, offers a beacon in his latest analysis. Amid a potentially sideways-to-bullish Indian market outlook, Ghose spotlights 10 undervalued or poised-for-growth stocks across diverse sectors like FMCG, banking, hospitality, pharmaceuticals, industrials, IT, and automobiles. These picks emphasize strong fundamentals, re-rating potential, and tailwinds from RBI rate cuts, FII inflows, and sector-specific catalysts.
Ghose’s strategy is stock-specific, favoring defensive plays in banking and consumer staples while eyeing compounders in growth areas like pharma and hospitality. “The market may consolidate, but quality names with improving earnings trajectories and reasonable valuations will deliver compounding returns over the next 2–3 years,” he notes. With Nifty trading near 24,000 levels and expectations of a 50–75 bps rate cut cycle, these recommendations aim for 15–30%+ upsides, blending technical supports with fundamental strength.
Stocks to Buy for the Long Term
Here’s the complete list with latest details as of December 6, 2025 (closing prices):
1. ITC Ltd. (FMCG, Hotels, and Agri)
ITC remains a defensive powerhouse, trading at a compelling discount to FMCG peers on P/E (around 25x FY26E) and EV/EBITDA multiples. Its cash-rich balance sheet (net cash ~₹30,000 crore) funds growth in high-margin segments like hotels and branded FMCG, while cigarette cash flows provide stability. Regulatory risks on tobacco are largely priced in, paving the way for earnings upgrades as rural recovery boosts volumes.
- Key Tailwinds: Improving business mix; potential demerger unlocking value.
- Suggested Entry/Support: ₹370-₹360 (near 200-DMA).
- Target Price: ₹580 (20-25% upside via re-rating to 28x P/E).
- Why Long-Term?: Resilient dividends (yield ~3%) and diversification make it a portfolio staple.
2. Bank of Baroda (Public Sector Banking)
As a undervalued PSU bank, BoB trades below book value (P/B ~0.9x) despite robust deposit (18% YoY growth) and credit expansion in retail, MSME, and agri. Digital initiatives like Bob World are driving efficiency, with NIMs stabilizing post-rate hikes. Ghose sees breakout potential as PSUs benefit from government capex push.
- Key Tailwinds: Normalizing rates; improving asset quality (GNPA <3%).
- Suggested Entry/Support: Break above ₹300 (key resistance).
- Target Price: ₹400 (30%+ upside on earnings momentum).
- Why Long-Term?: Valuation re-rating to 1.2x P/B could mirror peers like SBI.
3. ICICI Bank (Private Sector Banking)
ICICI stands out as a credit growth engine, with diversified exposure to retail (home loans up 20% YoY), corporates, cards, and wealth management. Strong loan book quality (slippages <1%) and margins (~4.5%) position it for macro tailwinds like lower funding costs. Ghose highlights its role in India’s consumption-led recovery.
- Key Tailwinds: RBI cuts boosting NIMs; digital ecosystem scaling.
- Suggested Entry/Support: Current levels (~₹1,200).
- Target Price: ₹1,641 (35% upside on 18% RoE trajectory).
- Why Long-Term?: Consistent compounding at 15-18% EPS growth.
Also Read: Is AI Hype Driving a Market Meltdown?
4. Indian Hotels Company (Hospitality)
IHCL is riding premiumization and revenge travel waves, with a 15% RevPAR growth and a 50,000-room pipeline. Despite rich valuations (P/E ~60x), expanding EBITDA margins (from 25% to 30%) and debt reduction justify the premium. Ghose views it as a play on India’s tourism boom.
- Key Tailwinds: Urban leisure demand; international expansions.
- Suggested Entry/Support: Dips to ₹700.
- Target Price: ₹980 (25% upside via volume-led growth).
- Why Long-Term?: Asset-light model ensures high ROCE (>20%).
5. Lupin Ltd. (Pharmaceuticals)
Lupin’s turnaround is gaining steam with US generics launches (gRevlimid ramp-up) and India specialty focus, driving 15-20% revenue CAGR. Margins are rebounding to 20%+, supported by a robust pipeline (50+ ANDAs). Ghose flags execution risks but sees compounding if biosimilars deliver.
- Key Tailwinds: US FDA approvals; domestic chronic therapy growth.
- Suggested Entry/Support: ₹1,800-₹1,700.
- Target Price: ₹2,300-₹2,600 (40% upside on EBITDA beats).
- Why Long-Term?: Debt reduction to <1x net debt/EBITDA unlocks value.
6. ABB India (Industrials: Capex, Automation, Electrification)
ABB is a pure-play on India’s capex cycle, with asset-light ops yielding 25%+ ROCE and a ₹3,000 crore order book in renewables/automation. Premium valuations (P/E ~80x) reflect its moat in electrification amid green energy push.
- Key Tailwinds: PLI schemes; data center boom.
- Suggested Entry/Support: Pullbacks to ₹5,000.
- Target Price: ₹6,500 (implied 20% via order inflows).
- Why Long-Term?: Secular shift to EVs and smart grids.
7. Birlasoft Ltd. (IT Services: ER&D and Digital)
Trading at a discount to IT peers (P/E ~15x), Birlasoft’s focus on manufacturing/BFSI yields margin gains (15% EBITDA) and a strong pipeline. Ghose expects catch-up as digital deals normalize post-US slowdown.
- Key Tailwinds: AI/ER&D demand; client wins in hi-tech.
- Suggested Entry/Support: ₹400-₹380.
- Target Price: ₹506 (25% upside on multiple expansion).
- Why Long-Term?: Undervalued growth at 12-15% revenue pace.
8. Tata Consultancy Services (TCS) (IT Services: Global)
TCS’s compounding machine status shines with a $50B+ order book and mid-teens margins. Discounted multiples (P/E ~25x) offer entry amid sector rotation, with BFSI deals rebounding.
- Key Tailwinds: GenAI pilots; cost optimizations.
- Suggested Entry/Support: ₹3,150-₹3,200 (50-DMA).
- Target Price: ₹3,600-₹3,800 (15-20% upside).
- Why Long-Term?: Proven resilience; 10-12% EPS growth.
9. Bajaj Auto Ltd. (Automobiles: Motorcycles, EVs, Exports)
Cash-rich (₹20,000 crore surplus) with premium portfolio (Pulsar/Platina), Bajaj eyes EV exports and new launches for 10% volume growth. Reasonable valuations (P/E ~20x) support payouts.
- Key Tailwinds: Rural revival; ASEAN expansion.
- Suggested Entry/Support: ₹9,000.
- Target Price: ₹10,200 (15% upside on mix improvement).
- Why Long-Term?: Dividend yield ~3%; EV pivot.
10. Lemon Tree Hotels (Hospitality)
An asset-light operator with 10,000+ rooms in pipeline, Lemon Tree boasts superior post-COVID recovery (occupancy >70%). In-line valuations offer compounding via urban/mid-market demand.
- Key Tailwinds: Tier-2 city growth; ARR hikes.
- Suggested Entry/Support: ₹140.
- Target Price: ₹182-₹193 (30% upside).
- Why Long-Term?: ROCE >15%; scalable model.
Market Outlook and Strategy Tips
Ghose envisions a “sideways grind” for Nifty (support 23,000, resistance 24,500) turning bullish on Q3 earnings and FII flows (projected $20B inflows in H2FY26). Banking/FMCG for defense; industrials/pharma for alpha. Allocate 10-15% per stock, stagger entries on dips, and hedge via options for volatility.
Disclaimer: This article synthesizes expert analysis for informational purposes. Pocket Saving and Hedged.in do not provide financial advice. Market conditions change rapidly—verify with SEBI-registered advisors. Do you own any of these? Share in the comments!
Latest prices as of December 6, 2025, market close. Data sourced from NSE/BSE.
