We wish our readers a very happy, colourful, and joyous Holi 2025!

After five consecutive months of selloff, India’s benchmark Nifty 50 is up over 1 per cent in March so far, driven by signs of economic growth picking up and inflation easing to comfortable levels. Investors are optimistic about a potential revival in corporate earnings from the next quarter, further boosting market sentiment.

While it may be too early to say the worst is over, given the turmoil in the US stock market, it’s time to hold onto hope that challenging times are always followed by brighter days.

“Holi teaches us that life’s most beautiful moments come from embracing messiness. Value investing shows that financial security comes from embracing market downturns as buying opportunities. Just as Holi celebrates the triumph of good over evil, long-term investing celebrates the triumph of patience over market hysteria,” said Devarsh Vakil, the head of Prime Research at HDFC Securities.

Mint spoke to experts for their top stock picks for Holi 2025, focusing on long-term investment opportunities. While the stock market remains closed on Friday for Holi, analysts suggest investors consider buying these stocks on Monday. Take a look—do you own any?

10 stocks to buy for long term

Expert: Devarsh Vakil, Head of Prime Research at HDFC Securities

Ambuja Cements

Ambuja Cements is part of Adani group company and India’s second largest cement company with a capacity of 97 MTPA.

The company plans to expand its capacity to 140 MTPA by FY28, supported by the benefits from operational synergies being a part of the Adani group.

Recent acquisition of Orient Cement Ltd (46.8% stake) could increase its regional share in the western and southern markets.

“The company maintains robust operating efficiency and a strong financial profile supported by a debt-free balance sheet, healthy payout and strong liquidity. Economic downturns, the commoditised and cyclical nature of the cement industry, and a change in market dynamics are key concerns. The stock is trading at 16.5 times FY27E EV/EBITDA. We suggest a target price of ₹600,” said Vakil.

Federal Bank

Federal Bank is a fast-growing old private sector bank with a strong NRI base in the Middle East. With a total business of nearly ₹5 lakh crore, Federal Bank has broken out from the league of mid-sized banks and is now closer to larger banks in terms of scale.

The bank intends to address the issue of low CASA ratio via improving its wholesale banking capabilities, and has guided for CASA ratio improvement from nearly 30 per cent currently to 36 per cent by FY28.

Federal Bank is focusing on high-margin products in the retail segment to accelerate its business growth. The share of higher-margin products in gross advances increased from 24.6 per cent in Q3FY24 to 25.8 per cent in Q3FY25, while interest income increased by 190bps to 28 per cent.

“Federal Bank has witnessed continued improvement in its asset quality. Consequently, its GNPA and NNPA declined from 3.8 per cent and 1.2 per cent, respectively, in FY21 to 2 per cent and 0.5 per cent, respectively, in Q3FY25. Regional presence, success of new products launched, and low return ratios are key monitorable factors for the bank. The stock is trading at 1.06 times FY27E ABV. We suggest a target price of ₹224,” said Vakil.

KNR Constructions

KNR’s executable order book stands at ₹5,517 crore, split roughly between EPC/HAM (54 per cent) and irrigation projects (46 per cent), expected to be completed within two years.

The company expects to secure ₹6,000-8,000 crore in new orders for FY25, aiming for a larger order book, improved margins, and diversification.

“Supported by a robust balance sheet and its participation in the revival of NHAI project awards, KNR’s long-term outlook appears strong. Any delay in an order awarding by NHAI, higher raw material prices, and large concentration on road projects are key concerns. The stock trades at an attractive valuation of 11.3 times FY27 EPS. We suggest a target price of ₹338,” Vakil said.

PNB Housing Finance

Established in 1988, PNB Housing Finance has a long and profitable track record of operations. It is the fourth-largest housing finance company in India in terms of AUM (assets under management).

The stock is enjoying a sectoral tailwind, as India is currently witnessing one of the fastest paces of urbanisation. Cumulatively, the existing shortage plus the upcoming demand for affordable housing in India is estimated to be 31.2 million units by 2030.

“PNB Housing Finance is focusing on high-yielding retail loans to drive profitability. Rating upgrades and repo rate cuts by RBI could drive higher NIMs in the coming years.

Higher competition from NBFC and banks, pressure on NIMs, and deterioration in asset quality are key concerns for the company. The stock is trading at 1.03 times FY27E ABV. We suggest a target price of ₹1,094,” said Vakil.

Quess Corp

Quess Corp is the number one player in temporary staffing space and amongst top five staffing company globally. It has also presence across GTS (technology solutions), facility management and industrial asset management services. Quess has a team of nearly 6 lakh employees across India, North America, South America and South-East Asia across all segments and serves over 3000+ clients worldwide.

“Given the superior quality of Quess’ general staffing business, IT staffing, Facility management and GTS business segments, we feel that the stock deserves better valuations,” said Vakil.

“We like Quess Corp due to (1) series of acquisitions and witnessed healthy growth, (2) focus on margin accretive growth and also on free cash generation, and (3) the demerger of its various business,” said Vakil.

“We estimate an 11 per cent, 17.5 per cent and 27 per cent revenue, EBITDA and PAT CAGR, respectively, over FY24-27E. We have a target price of ₹805 based upon 22 times FY27E EPS over the next two quarters. Lower growth due to economic conditions or competitive intensity, as well as the inability to improve the margin profile and working capital cycle, could be risks for the company. We suggest a target price of ₹900,” said Vakil.

Expert: Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities

HDFC Bank

HDFC Bank is the largest private sector bank in India, incorporated in August 1994. The bank has delivered good profit growth of 23.4 per cent CAGR over the last five years and consistent profits with a CAGR of 21.74 per cent over the past ten years. 

The bank operates on a NIM (net interest margin) of 3.4 per cent with a lower NPA (non-performing assets), and its advances and deposits have grown over the years.

“The stock is currently trading at a discounted valuation of more than 30 per cent from its 10-year average price-to-book-value and at a price-to-earnings of 19, which provides a significant buffer against potential downside risks, creating an appealing risk-reward profile,” said Sheth.

Kotak Mahindra Bank

Kotak Mahindra Bank, is one among India’s top four private banks, has maintained strong financial metrics, with a five-year profit CAGR of 20.4 per cent. The bank’s CASA ratio stands at 42.3 per cent, while its NIM is 4.93 per cent, reflecting high profitability.

“With a net NPA of just 0.41 per cent, the bank has a healthy asset quality. Currently, the stock trades at a PE of 19 and a PB of 2.93, well below its historical average, indicating undervaluation. The combination of strong loan growth, high profitability, and robust asset quality positions Kotak Bank for sustained expansion,” said Sheth.

SAIL

Steel Authority of India (SAIL), a Maharatna PSU, is one of the largest steel manufacturers in India. It has been a key supplier of steel tracks to Indian Railways and contributes significantly to metro rail projects. 

The company has improved its working capital cycle and has consistently maintained a 30 per cent dividend payout ratio post-COVID, reinforcing its commitment to shareholder returns.

“Currently, the stock is trading at a price-to-book multiple of 0.76, offering a lucrative opportunity to buy at a low valuation,” Sheth said.

ITC

ITC Limited is a diversified Indian conglomerate with a strong presence in various sectors. The company’s gross revenue for the December 25 quarter stood at ₹18,953 crore, up 8.4 per cent year-over-year. 

ITC’s diverse businesses include FMCG, agribusiness, paper-boards, paper and packaging and hotels. The stock remains one of the top picks due to its growth potential.

Coal India

Coal India is the world’s largest coal producer, accounting for approximately 80 per cent of India’s total coal output. Since March 2020, the company has doubled its fixed assets to ₹83,642 crore, alongside a 20 per cent rise in borrowings.

The company has delivered a three-year profit CAGR of 43 per cent, backed by a healthy dividend yield of 7 per cent, with consistent payouts. It has remained cash-positive in all years of operation. 

“On a 10-year horizon, its PE and PB multiples are at the lower end of their historical range, making it an attractive valuation play,” said Sheth.

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