Indian stock market has witnessed a sharp downturn in the last 6 months, with the benchmark index Nifty 50 plunging more than 14% from its September 2024 peak. The broader indices have underperformed, as the Nifty Midcap 100 index is down 19% and Nifty Smallcap 100 index is down 25% from their peaks.

With such a backdrop, the current market is steeped in panic, driven by a cocktail of global and domestic concerns, said Utsav Verma, Head of Research – Institutional Equities, Choice Equity Broking.

“But we notice the following early signs to accumulate quality stocks for the long-term. Post the sharp correction the risk-reward profile is becoming increasingly favourable: At a TTM P/E of ~20x for the Nifty 50, from a high of 24+, we see serious value emerging in the market,” said Verma.

Choice Equity Broking recommends seven stocks to buy for long-term amid current market setup. These stock picks are Mahindra & Mahindra (M&M) Hindware Home Innovation, JK Cement, Bharat Electronics, Yatharth Hospitals, Coforge and Divi’s Laboratories.

Stocks to buy for Long-Term

M&M | Buy | Target Price: ₹3,790

M&M has strengthened its position in the Indian auto industry with consistent market share gains across key segments. With a well-diversified portfolio across high-growth categories, M&M is well-positioned to sustain its growth momentum and capitalize on evolving consumer preferences, Choice Broking said.

It maintains a positive outlook on M&M shares, maintaining its ‘Buy’ rating, with a target price of ₹3,790 per share.

Hindware Home Innovation | Buy | Target Price: ₹253

Hindware shares now trade at FY27E PE of 18x, versus 28x for Cera Sanitaryware. The brokerage firm maintains its ‘Buy’ rating on the stock with target price of ₹253, valuing the company at 23x FY27E EPS.

JK Cement | Buy | Target Price: ₹5,460

JK Cement is well-positioned for a strong performance in the cement sector, said Choice Broking. It projects volumes of 20.0, 22.2 and 25.5 Mnt for FY25, FY26 and FY27E, with an EBITDA per tonne of ₹988, ₹1,195 and ₹1,205 and total EBITDA of ₹19.7 billion, ₹25.6 billion, and ₹30.7 billion.

Historically, JK Cement shares have traded at a five-year average EV/EBITDA of 25.5x. The brokerage firm has valued JK Cement at a 15x EV/EBITDA multiple on FY27 estimates, arriving at a target price of ₹5,460 (earlier it was ₹5,532) while maintaining a ‘Buy’ rating.

Bharat Electronics | Buy | Target Price: ₹370

Bharat Electronics is well placed within the defense sector, because the company is not solely reliant on order inflows from major Defence PSUs. Near term triggers include India & US may sign few defense contracts. The brokerage firm expects a significant amount of defense business coming from Europe in the near to medium term, driven by the US distancing itself from Europe. It has a “Buy” rating and BEL share price target of ₹370 apiece.

Yatharth Hospitals | Buy | Target Price: ₹628

Yatharth Hospitals stock currently trading at 15x EV/EBITDA, below its 3-year average of 21.9x, it offers an attractive entry point for long-term growth investors. Near term triggers include the operationalization of two new facilities in April 2025. The brokerage currently has a ‘Buy’ rating on Yatharth Hospitals & Trauma Care Services shares with a target price of ₹628.

Coforge | Buy | Target Price: ₹11,260

Coforge share price has experienced roughly 25% decline over the past two months, bringing its valuation to more attractive levels, said the brokerage firm. It projects Revenue, EBIT and PAT to grow at a CAGR of 24.4%, 35.1% and 48.6%, respectively, over FY25E-FY27E. It currently has a ‘Buy’ rating on Coforge stock with a target price of ₹11,260.

Divi’s Laboratories | Buy | Target Price: ₹6,983

Divi’s Laboratories is poised for strong growth on the back of several key factors such as CDMO segment growth, increased production capacity, limited impact of US tariffs and expectations to secure high-value contracts, according to Choice Broking. It has a ‘Buy’ rating on the stock with a target price of ₹6,983 apiece.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.