Stocks to buy for long term: The Indian stock market has underperformed major domestic and emerging markets over the last year, largely due to stretched valuations, weak earnings, foreign capital outflow and dearth of AI-play.
Nifty 50 has gained just 6 per cent over the last year, while the S&P 500 has jumped over 12 per cent.
However, this period of consolidation may be nearing its end, as India’s stable Q2 earnings and optimistic management commentaries have raised hopes for a revival in earnings, which could drive the key indices to unprecedented heights in the coming months.
Nevertheless, global uncertainties remain a key overhang. The India-US trade deal remains among the key factors that will dictate market trends going ahead.
Considering the confluence of headwinds and tailwinds, it could be an opportune time to bet on quality stocks for the long term, as the valuation of many stocks has come down significantly, offering significant value.
Vinit Bolinjkar, the head of research at Ventura, lists below 10 value stocks to buy for the long term. Do you own any of these?
Top value stocks to buy for long term
Hindustan Aeronautics (HAL)
Bolinjkar finds HAL a compelling long-term investment due to its robust financial performance and strategic growth initiatives.
In FY25, HAL posted a revenue of ₹30,100 crore with a 10 per cent rise in profit after tax to ₹8,317 crore.
Its order book stands strong at ₹2.2 lakh crore, supported by major contracts for 97 Tejas Mk1A jets and 156 light combat helicopters Prachand, ensuring steady revenue visibility.
“HAL’s foray into civil aviation with Airbus tie-ups, ongoing R&D investments of ₹2,500 crore annually, and advancements in indigenous defence technology position it well for sustained growth and innovation, making it a reliable bet for the future,” said Bolinjkar.
State Bank of India (SBI)
SBI remains a strong long-term investment due to its resilient financial performance and growing market presence.
In Q2FY26, SBI posted a robust standalone net profit of INR 20,160 crore, marking a 10% YoY increase, buoyed by strategic stake sales and stable credit growth. Its loan book crossed ₹43 lakh crore, supported by consistent credit demand revival.
The bank’s asset quality improved with a gross NPA ratio declining to 1.73%.
“With its dominant market position, government backing, and aggressive digital transformation, SBI is well-positioned for sustained growth, making it a reliable long-term bet for investors,” said Bolinjkar.
Adani Green Energy
Bolinjkar underscored that Adani Green Energy, India’s largest renewable energy company, reached 17 GW in operational capacity, with 75 per cent from the Khavda (Gujarat) project.
Management stated that the infrastructure at the Khavda site is ready, and the capacity addition at the site will be faster.
Adani Green Energy targets 50 GW by 2030 (30 GW from Khavda). Its operational excellence, powered by AI/ML technology, drives high-capacity utilisation rates.
The company has received ₹9,350 crore from its promoter group after converting share warrants into equity, thereby boosting the promoter’s holding to 62.43 per cent.
This infusion will be used to repay shareholder loans and fund capital expenditures (capex), supporting Adani Green’s goal of reaching 50 GW of installed capacity by 2030.
“Over FY25–28E, revenue, EBITDA, and net profit are projected to grow at a CAGR of 30.3%, 31.9%, and 53% to ₹24,795 crore, ₹20,351 crore, and ₹5,173 crore, respectively, with EBITDA margins improving by 290 bps to 82.1% and net margins by 798 bps to 20.9%,” said Bolinjkar.
Adani Power
Adani Power is a long-term bet due to its strong operational and financial performance. Despite a slight 11.9% decline in Q2FY26 net profit to ₹2,906 crore, the company is expanding capacity aggressively, targeting 42 GW by FY32.
It secured 4.5 GW of long-term power purchase agreements under the SHAKTI scheme, ensuring revenue stability.
With a 70.5% plant load factor in FY25 and robust liquidity, Adani Power’s growth strategy focuses on capital and cost efficiencies.
Despite challenges like the Bangladesh project dispute, the company leads India’s power sector transition, making it a promising long-term investment.
“Over FY25-28E, revenue, EBITDA and net earnings are projected to grow at 12.3%, 13.8% and 15.7% CAGR, reaching ₹79,670 crore, ₹31,382 crore and ₹20,054 crore, respectively. EBITDA margins are expected to improve by 148bps to 39.4% due to moderation in fuel cost and efficient cost recovery under PPAs, while net margins are expected to improve by 106bps to 24.1%,” Bolinjkar said.
One97 Communications (Paytm)
Paytm has significantly improved its business position, achieving profitability and strong revenue growth through operational and strategic changes.
“We anticipate Paytm’s MTUs and subscription paying device merchant base could increase from 74 million and 13 million in Q1FY26 to 95 million and 22 million, respectively, by FY28E, while payment GMV could improve from ₹18.7 lakh crore in FY25 to ₹33.9 lakh crore by FY28E,” said Bolinjkar.
“Over FY25-28E, Paytm’s revenue and contribution profit are projected to grow at a CAGR of 27.3% and 30.8% respectively, to reach ₹14,200 crore and ₹8,208 crore, respectively, while contribution margin is expected to improve from 53.2% to 57.8% over the same period,” Bolinjkar said.
Paytm turned post-ESOP EBITDA positive in Q1FY26, a trend Bolinjkar expects to sustain.
“By FY28E, we project a post-ESOP EBITDA of ₹2,164 crore (15.2% margin) and net profit of ₹2,138 crore (15.1% margin), a sharp turnaround from FY25 losses of ₹1,543 crore and ₹659 crore, respectively. This improvement is underpinned by AI-driven operating leverage and a disciplined cost structure,” said Bolinjkar.
Ambuja Cement
Ambuja Cement boasts a current production capacity of 107 MTPA and operates at an EBITDA margin of ₹1,060 per ton.
Ambuja Cement’s management aims to scale its capacity to 118 MTPA by the end of FY26 and 155 MTPA by the end of FY28—surpassing its prior 140 MTPA target—through an ongoing 13 MTPA expansion, a 21 MTPA pipeline, and 15 MTPA via debottlenecking, while increasing EBITDA per ton to ₹1,500.
Revenue growth will stem from this capacity ramp-up, with profitability bolstered by power cost optimisation (shifting to green/renewable sources to cut thermal expenses) and freight savings (leveraging waterways for lower transport costs).
“For FY25–28E, consolidated sales volume, revenue, EBITDA, and net profit are projected to grow at CAGRs of 18.8%, 19.6%, 39.4%, and 22.8%, respectively—reaching 109.3 million tons, ₹59,897 crore, ₹16,172 crore, and ₹7,721 crore,” said Bolinjkar.
“This trajectory is expected to lift RoE by 343 bps to 11.2% and RoIC by 1,565 bps to 23.3%, underpinned by higher EBITDA/ton and robust cash flow generation,” Bolinjkar said.
Royal Orchid Hotels
Royal Orchid Hotels, an Indian hospitality brand, aims to expand its portfolio from 115 hotels to 345 by 2030, adopting an asset-light model with minimal initial capex through franchisee properties.
Royal Orchid Hotels has a structured brand portfolio targeting all traveller segments, with a focus on upscale and budget options.
“Over FY25-28E, Royal Orchid Hotels’ revenue, EBITDA and net earnings are projected to grow at a CAGR of 24.8%, 26.2% and 23.8%, respectively, reaching ₹621 crore, ₹147 crore and ₹90 crore. EBITDA margins are expected to expand by 80bps to 23.7%, while net margins could decline by 34bps to 14.4% due to an increase in lease expenses,” said Bolinjkar.
V-Mart Retail
India’s retail apparel market is set to grow from ₹6,84,600 crore in 2024 to ₹10,68,200 crore by 2027, driven by GST reductions, income tax cuts, and favourable monsoon conditions.
V-Mart Retail, one of India’s top 10 apparel retailers, plans to expand its store network from 510 to 660 by FY28, with a capital expenditure of ₹350 crore.
“We project V-Mart’s revenue to grow at a CAGR of 16.1%, reaching ₹5,094 crore by FY28, driven by a 14.6% CAGR in units sold, stable ASP of ₹232-241, and improved sales per sqft,” said Bolinjkar.
“This growth aligns with V-Mart’s strategy of boosting sales volume while maintaining competitive pricing,” Bolinjkar added.
As per Bolinjkar, the company’s EBITDA and net profit may grow at a CAGR of 16.6% and 33.7%, respectively, with EBITDA margin rising to 12% and net margin increasing to 2.1%. ROE is forecasted to improve to 10.1% by FY28.
Titagarh Rail Systems
Titagarh Rail Systems secured a ₹24,000 crore contract to manufacture and maintain 80 Vande Bharat sleeper trainsets over a period of 35 years, one of the largest ‘Make in India’ rail orders.
Titagarh Rail Systems holds the largest market share in India’s wagon market, aiming for 1,500 units/month by FY26, with a wagon order book exceeding 10,000 units.
Its naval shipbuilding division is delivering five Diving Support Crafts to the Indian Navy.
These orders position Titagarh as one of the most diversified engineering companies, with strong execution, market leadership, and government-aligned projects, making it an attractive investment.
Transformers and Rectifiers India
India aims to double its power generation capacity from 485 GW to 900+ GW in the next five years. With a 40 GVA capacity expansion and full backward integration, Transformers and Rectifiers India is well-positioned to capitalise on this growth.
The management targets $1 billion (nearly ₹8,600 crore) revenue by FY28, up from ₹2,017 crore in FY25, with EBITDA growth outpacing revenue, driven by cost efficiencies.
As topline grows, margin improvements and working capital savings will help the company become net debt-free within 18–24 months, making it a strong investment opportunity in the power sector.
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