Looking for Indian shares that could grow your wealth over the next few years? Analysts at Kotak Securities have picked ten companies they believe offer solid long‑term upside.
Why the Market Could Improve in 2026
The Nifty 50 index is up almost 10% so far this year, while the broader Nifty 500 has risen about 6%. Analysts expect earnings to recover and macro conditions to get better in 2026, helped by lower interest rates, tax cuts and a possible India‑US trade deal.
Top 10 Long‑Term Picks
1. ICICI Bank
India’s second‑largest private bank with a balanced loan book.
- Current price: ₹1,350.55
- Fair value: ₹1,800
- Upside: ~33%
- Key points: Strong net interest margin (≈4.3%), good return on assets (≈2.3%) and low non‑performing assets (≈1.6%).
2. Aadhar Housing Finance
Focused on affordable housing loans.
- Current price: ₹484.35
- Fair value: ₹625
- Upside: ~29%
- Key points: 100% secured retail book, healthy return on assets (≈4.2%), low bad‑loan ratio (≈1.4%).
3. Jindal Steel (JSL)
Integrated steel maker expanding capacity.
- Current price: ₹986.50
- Fair value: ₹1,250
- Upside: ~27%
- Key points: New high‑margin steel plants, expected EBITDA growth of 21% CAGR, debt under control (leverage <1.5×).
4. Eureka Forbes
Maker of water purifiers, vacuum cleaners and air filters.
- Current price: ₹636.10
- Fair value: ₹800
- Upside: ~26%
- Key points: Strong brand network, sales growth target of 17‑18% CAGR, margin expansion from operating leverage.
5. Amber Enterprises
Producer of room air conditioners and other consumer durables.
- Current price: ₹6,647.40
- Fair value: ₹8,100
- Upside: ~22%
- Key points: Volume rebound in ACs, expected revenue CAGR of 23% (FY25‑28), earnings per share to rise sharply.
6. Thermax
Energy and environment solutions provider.
- Current price: ₹3,011.70
- Fair value: ₹3,575
- Upside: ~19%
- Key points: Expanding into data‑center cooling, oil‑&‑gas projects in the Middle East, improving margins as troubled orders fade.
7. Mahindra & Mahindra (M&M)
Large auto and farm‑equipment manufacturer.
- Current price: ₹3,621.20
- Fair value: ₹4,200
- Upside: ~16%
- Key points: Market‑leading position in tractors and SUVs, focus on finance arm growth, consistent value‑creation strategy.
8. Varun Beverages
PepsiCo’s biggest franchisee outside the US.
- Current price: ₹482.95
- Fair value: ₹550
- Upside: ~14%
- Key points: Strong brand support from PepsiCo, new partnerships (e.g., Carlsberg beer distribution), plans to enter Indian alcohol market.
9. Sagility
Healthcare BPO services provider for U.S. payers.
- Current price: ₹52.62
- Fair value: ₹59
- Upside: ~12%
- Key points: Deep payer relationships, scalable operations, could benefit from cost‑cutting outsourcing trends.
10. Infosys
Global digital services and consulting firm.
- Current price: ₹1,655.55
- Fair value: ₹1,800
- Upside: ~9%
- Key points: Large employee base, AI opportunities in medium term, expected earnings lift as discretionary spending recovers.
Bottom Line
These ten companies cover a mix of banking, housing finance, steel, consumer goods, industrial services, automotive, beverages and IT. Their valuations suggest room for upside, and most have solid fundamentals that could benefit from a healthier 2026 economy.
Remember, this is just a perspective, not a prediction. Do your own research and consider talking to a certified financial advisor before making any investment decisions.