From Va Tech Wabag to PCBL Chemical – Devarsh Vakil from HDFC Securities suggests 5 shares to buy

Shares to be purchased in the long run: Indian stock market reference, Nifty 50, extended profits to the third in a row in May, supported largely with a better profit from the quarter, the influx of foreign capital and healthy domestic national macroeconomic indicators. However, stretched valuations and geopolitical uncertainties maintained the reduction of profits. Nifty 50 increased by almost 2 percent in May after a 3 % profit in April and 6 % profit in March. From year to day, the index increased by 4.7 percent.

Experts point to the extraordinary resistance of the Indian economy and markets that have overcome domestic and global challenges. They remain positive about medium -term perspectives of the domestic market due to healthy prospects for economic growth and a strong influx of retail investors.

“The average perspective remains bright, supported by solid growth prospects driven by a country-oriented economy, youthful demographics and progressive digitization-creating various, high-quality investment possibilities in various industries,” said Devarsh Vakil, head of Prime Research, HDFC Securities.

“India National Economic Foundation provides protection against global variability, strengthening that the market slowdown is temporary. We maintain stubborn marks perspectives in the long term and present these five long -term investment possibilities,” said Vakil.

Vakil chooses the following five actions that can be bought for the next one to two years to get healthy advantages. Do you have any?

Spare elections in the long term

PCBL Chemical Previous closure: ₹398.60 | Tire price: ₹559 | Growth potential: 40%

Chemical pcbl It is the largest in India, and 7. As for the size, the world company in the world, which is fundamentally used as strengthening material for tire production.

The company is present in three main products: (i) tires, (ii) black from performance and (iii) specialized blacks.

Management is positive in relation to the perspective on long -term demand. The management suggested that completing the de-zatop on the global market and lowering inflation may be positive for the acceptance of demand.

The company will continue to operate in CAPEX for the next three years, increasing Brownfield in Chennai, double the ability of Aqua-Pharm, increasing the special CB abilities and pouring money into JV to gain future development opportunities.

The company has started work on a large pilot factory in India, which will develop nano-slilicone additives for use in lithium-ion batteries. I want to invest almost $ 30 million in JV and expects the combined JV EBITDA ₹800-900 Crore at top levels within 36 months after commercialization. Expects commercialization by Q4fy27E.

“We expect that revenues and PAT will increase at CAGR of almost 14 percent and 20 percent, respectively, compared to the budget year 25-27e. At the current market price, the shares trade 21.5 times FY27E EPS (profit per share),” said Vakil.

Va Tech Wabag | Previous closure: ₹1 628.50 | Tire price: ₹2100 | Growth potential: 29%

Va Tech Wabag It is a water company with pure Play, with a strong presence of over 25 years in water technology and non -standard water purification solutions via EPC services (engineering, orders and construction), O & m services (operational and maintenance), research and development, construction and order.

The company shows many growth triggers, with record -breaking FY25 in all key indicators, such as sales, EBITDA, PAT, Healthy Cash balance and orders (three times sales), ensuring strong predictability of revenues for three years.

Wabag’s Asset Light, a profitable growth strategy, 95 percent multilateral/supported by a sovereign order book, expanding international concentration, along with an improved AA credit evaluation, shows solid investment potential.

“Investors can buy shares at current levels at the target price ₹2100 per action (33 times FY26E EPS), “said Vakil.

Cement star Previous closure: ₹217.37 | Tire price: ₹260 | Growth potential: 20%

Cement star It is one of the leading players in the most profitable north-east region. With a cement capacity of 7.7 MTPa, the Star has almost 24 percent share on the north-east market.

“We think that it has a strong, balanced competitive advantage in the north -eastern region, because the entrance of external players in this market is limited,” said Vakil.

Over the years, Star has created a strong brand withdrawal and is well prepared to use future development opportunities.

“We expect healthy results from the company in the coming years based on increased ability to clinker and cement, managerial position on a profitable and developing north-eastern market and savings initiatives to increase profitability,” said Vakil.

“We believe that investors can buy shares in ₹210-225 bead (10.9 times FY27E EV/EBITDA) and add DIPS IN ₹180-195 (9.4 times FY27E EV/EBITDA) ₹260 (12.8 times FY27E EV/EBITDA) in the next two to three quarters, “said Vakil.

EPL Previous closure: ₹247 | Tire price: ₹285 | Growth potential: 15%

EPP is a leading producer of laminated plastic pipes in the world, with an almost 35 % market share in oral care and catering for companies such as Unilever, Colgate, P&G, etc.

On the personal hygiene market, EPL’s The global share is almost 10 percent, and the opportunity three times greater than oral care, the height runway is long.

EPP is a market leader (almost 20 times in global specialist packaging), which is still to gain market share in the industry, which undergoes a structural change due to innovative product introduction.

Strong EPL innovation is expected, a lot of balanced solutions will be quickly accepted by larger brands of personal hygiene, taking into account their involvement in sustainable development goals.

The company has provided solid results in the last quarters among the difficult geopolitical background.

The key positive is the extension of a durable margin, because the EBITDA margin expanded to the 10th quarter in a row.

EPP management has undertaken to ensure a double -digit increase in revenues and with the ambition of the EBITDA margin of almost 20 percent in the budget year 26. The stability of raw materials prices should additionally help in recovering the margin.

“Going further, we expect that revenues and CAGR EBITDA are 10 percent and 14 percent, respectively, compared to FY25-27e. Roce and ROE should increase further from 16.3 percent and 17.4 percent, respectively, in FY25 to 17.9 percent and 21.1 percent according to FY27. The company currently trades at 15.5 times 27e,” said Vakil.

Castrol India Previous closure: ₹216.22 | Tire price: ₹239 | Growth potential: 11%

Castrol India is an automotive and industrial production company, supported by a strong distribution network, which reaches over 1.48 LAKH retail outlets and 350 distributors.

Castrol India It focuses on building a brand, expanding the distribution network and introducing new products that will contribute to the growth of the volume and expanding the market share.

Recognizing the need for advanced cooling solutions in rapidly developing data centers, Castrol India uses its specialist knowledge in the field of liquid technology to introduce innovations in this new field.

The company focuses on the development of the volume, while maintaining margins and emphasizing the product premium.

“We expect the volume of Castrola lubricants will increase by 4.5 percent and 5 percent in Cy25E and CY26E, respectively. We recommend purchasing shares with a target price ₹239. At the current market price ₹217, Actions trade 19.5 times Cy26E, “said Vakil.

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Reservation: This story serves only educational goals. The above views and the above recommendations are the views of individual analysts or producing companies, not Mint. We advise investors to contact certified experts before making investment decisions, because market conditions may change quickly and the circumstances may differ.