Stocks to buy for long term: M&M, ICICI Pru among Religare Broking's 5 high-conviction stock picks for 2026

Stocks to buy for long term: The year 2025 marked a phase of healthy consolidation for the Indian stock market after several years of strong gains. Indian benchmark indices, Sensex and Nifty, remained largely range-bound, driven by global uncertainties, uneven earnings delivery, and heightened sensitivity to macro cues.

The biggest highlight of the year that rattled markets worldwide was the tariff action linked to the return of aggressive US trade posturing under the Trump administration. These developments led to bouts of risk-off sentiment, fluctuations in capital flows, and increased volatility across emerging markets, including India.

Yet, supportive economic policies, strong DII buying and robust domestic liquidity helped cushion the impact of the headwinds faced by Indian equities this year.

As we enter 2026, the outlook appears more constructive, said Religare Broking. "In this environment, market volatility should be viewed as an opportunity rather than a risk. Investors are advised to focus on accumulating fundamentally strong companies with healthy balance sheets, earnings visibility, and long-term growth drivers," the brokerage opined.

Against this backdrop, Religare Broking has shared a list of five stocks to buy, which it said are "well-positioned to deliver robust performance in 2026". It recommends accumulating these names to benefit from the next leg of the market cycle.

Stocks to buy for long term

Among the top stocks to buy for the long term, Religare Broking has listed: Mahindra & Mahindra (M&M), Kotak Mahindra Bank, ICICI Prudential Life Insurance, Lupin and JK Lakshmi Cement.

M&M | Target Price: ₹4161 | Upside scope: 15%

M&M’s medium-to-long-term outlook remains robust, driven by product innovation, operational efficiency, and strong market positioning, said the brokerage.

New SUV launches, GST-led affordability, and a diversified portfolio across SUVs, tractors, and LCVs are expected to sustain strong demand and revenue stability. Higher volumes, disciplined cost management, and limited discounting should support margin expansion, while healthy cash flows provide flexibility for strategic investments in EVs and technology, it added.

"With valuations reflecting fair growth potential, we initiate coverage with a Buy rating and a target price of ₹4,161, expecting FY25–27E Revenue, EBITDA, and PAT to grow at a CAGR of 15.7%, 21.7%, and 21.7% respectively," the brokerage opined.

Kotak Mahindra Bank | Target Price: ₹2,487 | Upside scope: 15%

Kotak Mahindra Bank is well placed for steady, risk-adjusted growth, supported by its shift towards secured and flow-led lending, stabilizing asset quality and a strong granular liability franchise, said Religare Broking.

It further sees margin pressures easing as the rate cycle matures, while improving credit trends are expected to enhance earnings visibility.

"Its diversified subsidiaries across asset management, broking, insurance and vehicle finance add meaningful growth optionality. With valuations now below long-term averages after a prolonged time correction, the risk-reward is favorable. We reinitiate coverage with a Buy rating and a target price of ₹2,487, based on our SOTP valuation, valuing the standalone bank at 2.5x FY27E adjusted book value," Religare Broking said.

Lupin | Target Price: ₹2,508 | Upside scope: 19%

Lupin is well-positioned for medium-to-long-term growth, driven by global expansion, an improving product mix, and focus on high-value therapies, said Religare Broking.

Regulatory approvals in the US and Europe, along with traction in emerging markets, provide stable revenue visibility. With ongoing R&D and disciplined execution, we expect FY25-27E Revenue, EBITDA, and PAT to grow at a CAGR of 16.7%, 33.1%, and 41.5% respectively, it added.

It initiated coverage with a Buy rating and target price of ₹2,508 (17.3x FY27E P/E).

ICICI Prudential Life Insurance | Target Price: ₹800 | Upside scope: 23%

ICICI Prudential Life Insurance’s growth strategy of protection-led product mix, multi-channel distribution expansion, and operational discipline positions it well for sustainable earnings growth.

The brokerage expects APE/VNB/PAT to grow at a CAGR of 15.6%/19%/11.4% over FY25–FY27E, supported by rising protection penetration, cross-selling opportunities, and improving persistency metrics.

Operating leverage, cost efficiency, and strong solvency provide earnings visibility, while a stable product mix reduces sensitivity to capital market volatility, it said, adding that based upon these factors, it initiates a Buy rating with a target price of ₹800, valuing ICICI Pru Life at 2x FY27E P/EV.

JK Lakshmi Cement | Target Price: ₹979 | Upside scope: 23%

JK Lakshmi Cement’s growth strategy of calibrated capacity expansion, premiumisation and operational discipline positions it well for sustained earnings growth, opined the brokerage.

It expects Revenue/EBITDA/APAT to grow at a CAGR of 25.4%/57.9%/95.1% over FY25–FY27E, supported by volume CAGR of 12% and incremental realisation gains. "EBITDA margins should expand as capacity utilisation improves from current levels and management initiatives on fuel optimisation and green power usage lower costs," it said.

Against this backdrop, it initiated the coverage with a Buy rating at a target price of ₹979, valuing JKLC at 5.3x FY27E EV/EBITDA, implying attractive upside potential as execution translates into improved profitability metrics.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.