Mumbai: Leading brokerage firm Sharekhan has identified five Indian stocks for long-term investors, projecting potential returns of up to 56 percent over the next 12 months. The recommendations, released in December 2025, include prominent names like HCL Technologies and Power Finance Corporation (PFC), alongside Supreme Industries, V2 Retail, and Satin Creditcare Network. These picks span diverse sectors, from information technology and power financing to plastics, retail, and microfinance, highlighting opportunities in companies with strong fundamentals and improving demand.^[1][2][3][4] Sharekhan's market outlook suggests that while global uncertainties may impact equity markets, domestic brokerages continue to find long-term value in sectors demonstrating structural strength. The firm advises investors to focus on high-quality companies with resilient business models for steady compounding.^[1][5] PFC Leads with Highest Upside Potential Power Finance Corporation (PFC), a government financial institution and a systemically important Non-Banking Financial Company (NBFC), stands out with the highest projected upside. Sharekhan has issued a "Buy" rating for PFC, setting a target price of Rs 532. This represents a significant 56 percent potential gain for investors.^[2][4] PFC continues to benefit from robust demand for power sector funding, particularly in transmission and renewable energy projects across India.^[1] The company's strong loan book quality, healthy capital position, and clear visibility on secured lending make it a preferred long-term investment, with expectations of healthy profitability driven by strong infrastructure spending.^[1] PFC also acts as a nodal agency for key government initiatives such as the Revamped Distribution Sector Scheme (RDSS) and Ultra Mega Power Projects (UMPPs), and has supported approximately one-fourth of India's renewable energy installed capacity.^[6] Satin Creditcare Network Targets Rural Growth Satin Creditcare Network, a microfinance NBFC, is another strong recommendation from Sharekhan, carrying a "Buy" rating with a target price of Rs 201. This implies a substantial upside of 47 percent.^[2][4] The company primarily focuses on providing loans to small borrowers, especially women and micro-entrepreneurs, in rural and semi-urban areas.^[4] Satin Creditcare has expanded its product portfolio by venturing into housing finance and MSME finance, which further enhances its growth prospects and market reach.^[4] Supreme Industries Benefits from Diverse Portfolio Sharekhan recommends Supreme Industries with a "Buy" rating and a target price of Rs 4,445, indicating a potential upside of 34 percent.^[2][4] Supreme Industries is recognized as India's largest plastic processing company.^[4] Its diverse product range includes pipes, plastic furniture, packaging materials, and various other industrial plastic products.^[4] The company's robust distribution network and its presence across multiple product segments position it well to capitalize on both consumer and infrastructure growth themes within the Indian economy.^[4] V2 Retail Expands in Value Fashion V2 Retail, a value-focused fashion retail company, has received a "Buy" rating from Sharekhan with a target price of Rs 2,810. This forecast suggests a 26 percent upside.^[2][4] The company targets lower and middle-income consumers across India, actively expanding its store footprint.^[1][4] V2 Retail is also strengthening its private-label offerings to improve profit margins.^[1] Sharekhan believes that rising disposable incomes and increasing demand in Tier-II and Tier-III cities will support the company's long-term growth trajectory.^[1] HCL Technologies Poised for IT Sector Growth HCL Technologies, a global IT services and consulting company, is also on Sharekhan's list with a "Buy" rating and a target price of Rs 1,850. This implies a 12 percent upside.^[2][4] HCLTech offers a comprehensive suite of digital, engineering, cloud, and artificial intelligence (AI) solutions to clients worldwide.^[7][4] The brokerage firm highlights HCL Tech's diversified portfolio and AI-driven solutions as key factors ensuring medium to long-term growth potential.^[7] The company has reported strong bookings, increasing adoption of AI and Generative AI (GenAI) technologies, and a robust project pipeline.^[7] Management has recently adjusted the lower end of its revenue growth guidance for fiscal year 2026 to between 3 and 5 percent in constant currency terms, up from an earlier estimate of 2 to 5 percent.^[7] The company's EBIT margin guidance for FY26 is set between 17 and 18 percent.^[7] Sharekhan's recommendations underscore a strategic approach to long-term investing, focusing on companies with stable earnings visibility and strong balance sheets across key growth sectors of the Indian economy. Investors are advised to consider these high-conviction picks for a horizon of 12 months or more.^[2][3]

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