Stocks to buy for the long term: The Indian stock market is set to end the first half of calendar year 2025 (H1CY25) with a decent gain of 8 per cent, despite significant headwinds such as geopolitical tensions, tariff-related uncertainties, and weak corporate earnings.
With earnings recovering amid favourable growth-inflation dynamics, easing geopolitical tensions, and waning concerns over US tariffs, hopes are high that the domestic market will hit record highs in the second half of the year.
Experts believe this is the right time to buy the dips. They suggest picking quality stocks with strong long-term fundamentals.
Mint spoke to Tradonomy—a financial services and wealth management firm—for stock recommendations suitable at this juncture. The firm suggested 10 stocks to buy for the long term.
Tradonomy handpicked these stocks using its proprietary quant scoring model, which analyses valuation, growth, trend, and business quality across 50+ indicators.
Final picks were validated using key financial metrics like ROE (return on equity), profit margin, revenue growth, and cash flow, and justified using sectoral valuation benchmarks to estimate fair target prices.
Stocks to buy for the long term
Mazagon Dock Shipbuilders | Previous close: ₹3,174 | Target price: ₹9,000 | Upside potential: 184%
Mazagon is India’s premier submarine builder, with 19 per cent revenue growth and consistently strong margins. Zero debt and high government visibility make it a defensive growth story.
“With a 93 per cent Tradonomy score, it’s a top-rated stock in our system. As India upgrades its naval strength, Mazagon’s order book will remain full for years to come,” said the financial firm.
Motilal Oswal Financial Services (MOFSL) | Previous close: ₹854.35 | Target price: ₹2,400 | Upside potential: 181%
Motilal Oswal is a full-service financial powerhouse in broking, wealth, and asset management.
With 18 per cent revenue growth, solid ROE, and decent margins, it’s riding the retail investing boom and is a scalable platform for India’s financialisation.
“Cash flow remains healthy, and the 92 per cent Tradonomy score underscores quality and trend strength,” said the financial firm.
Action Construction Equipment (ACE) | Previous close: ₹1,211.70 | Target price: ₹3,000 | Upside potential: 148%
ACE is India’s leading construction equipment manufacturer, primed to benefit from the infrastructure and logistics push.
With government spending and private capex rising, ACE is well-positioned for multi-year expansion.
With 14.6 per cent revenue growth, 25 per cent ROE, and 12 per cent net margins, it shows robust operating efficiency.
“Cash flow conversion is strong, and the stock scores 94 per cent on Tradonomy, our highest conviction indicator,” said the financial firm.
Cummins India | Previous close: ₹3,337.20 | Target price: ₹5,600 | Upside potential: 68%
Cummins powers India’s infra backbone, supplying engines to railways, real estate, and data centres.
With 15.5 per cent revenue growth, 26 per cent ROE, and steady margins, the company benefits from cyclical recovery and export demand. Its global quality and local scale make it a dependable long-term industrial play.
“At a 90 per cent Tradonomy score, Cummins reflects high valuation strength and business stability,” said the financial firm.
Nippon Life India Asset Management | Previous close: ₹783.75 | Target price: ₹1,300 | Upside potential: 66%
Nippon AMC benefits from the structural shift toward mutual funds. With 24 per cent revenue growth and a 30 per cent ROE, it’s among the most profitable AMCs in the country. It operates an asset-light model with excellent cash conversion.
“The 89 per cent Tradonomy score confirms strong trend and growth momentum. It’s a steady wealth compounder for the next decade,” said the financial firm.
Central Depository Services (CDSL) | Previous close: ₹1,760.50 | Target price: ₹2,800 | Upside potential: 59%
CDSL is the digital custodian of India’s equity markets. With 32 per cent YoY revenue growth and a stellar 49 per cent net profit margin, it runs a high-margin, low-capex model.
ROE stands tall at 30 per cent with healthy cash flow backing. As equity culture deepens in India, CDSL becomes a quiet compounder.
“Tradonomy scores it at 90 per cent, reflecting strong trends and business quality,” said the wealth management firm.
Garden Reach Shipbuilders & Engineers (GRSE) | Previous close: ₹3,032.60 | Target price: ₹4,800 | Upside potential: 58%
Garden Reach is a defence PSU building warships for India’s coastal forces. A sharp 39 per cent year-on-year (YoY) revenue growth signals robust execution.
ROE is healthy, and business fundamentals are strong. As defence indigenisation deepens, GRSE stands to benefit from government contracts and maritime expansion.
“With a Tradonomy score of 89 per cent, it’s catching investor attention,” Tradonomy said.
Bharat Electronics (BEL) | Previous close: ₹414.50 | Target price: ₹580 | Upside potential: 40%
BEL is India’s defence electronics powerhouse, delivering 17 per cent revenue growth and a healthy 27 per cent ROE.
Its core strength lies in long-term government contracts, radar and missile systems, and increasing exports.
Though cash flow conversion is low due to capex, margins remain solid.
BEL is a strategic long-term bet on India’s defence modernisation.
“BEL’s 88 per cent Tradonomy score confirms its high-quality franchise,” Tradonomy said.
Force Motors | Previous close: ₹14,500 | Target price: ₹20,000 | Upside potential: 38%
Force Motors is transitioning from utility vehicles to a premium auto and defence mobility brand.
It posted 15.6 per cent revenue growth and an impressive 26 per cent ROE, backed by BMW/Mercedes engine supply contracts.
Its high 1.2 times cash conversion ratio shows capital efficiency.
“Tradonomy score of 89 per cent, it’s an under-the-radar compounder riding the auto-electrification curve,” said the financial firm.
Solar Industries India | Previous close: ₹17,484 | Target price: ₹22,000 | Upside potential: 26%
Solar Industries leads in industrial explosives and is expanding into defence propellants and rocket tech.
With 24.5 per cent revenue growth, high ROE, and two times cash conversion, it blends deep moats with futuristic segments.
“The 87 per cent Tradonomy score and expanding global footprint make it a long-term asymmetric bet on India’s defence-tech manufacturing,” said Tradonomy.
Read all market-related news here
Experts believe this is the right time to buy the dips.
Read more stories by Nishant Kumar
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, as market conditions can change rapidly, and circumstances may vary.
About The Author
