The Indian equity market is navigating a phase of consolidation, influenced by a confluence of global and domestic headwinds. Relentless foreign capital outflows, caution ahead of the Q3 FY26 earnings season, geopolitical uncertainties, and a delayed India-US trade deal have kept the domestic market range-bound. Reflecting this sentiment, the equity benchmark Nifty 50 declined for the second consecutive session on Tuesday, slipping below the 26,200 level.
Short-Term Caution vs. Medium-Term Optimism
Market analysts anticipate the range-bound movement to persist in the near term, primarily due to these global factors and the impending corporate results. However, the medium-term outlook has brightened, buoyed by expectations of an earnings recovery and renewed hopes for a conclusive trade pact with the United States. Experts concur that 2026 will remain a stock-picker's market, where selecting quality stocks with robust fundamentals will be paramount to weathering volatility and generating returns.
Ventura's Top 5 Long-Term Stock Recommendations
Vinit Bolinjkar, Head of Research at Ventura, has identified five stocks with strong long-term potential, projecting an upside of up to 76%. Here is a detailed look at his selections and the investment thesis for each.
1. Royal Orchid Hotels Ltd.
Bolinjkar is bullish on the Indian hospitality sector, which is transforming due to increased domestic travel, a persistent demand-supply gap, and a rise in business-oriented stays. Royal Orchid Hotels is poised to capitalise on this trend with an aggressive expansion plan. The company aims to grow its portfolio from 115 hotels to 345 by 2030, adopting an asset-light model through franchisee properties to minimise initial capital expenditure.
With a structured brand portfolio catering to all traveller segments, the company's financials are projected to be robust. Over FY25-28, Royal Orchid Hotels' revenue, EBITDA, and net earnings are expected to grow at a CAGR of 24.8%, 26.2%, and 23.8%, respectively. Bolinjkar has set a FY28 price target of ₹700, implying a 76% upside from the previous close of ₹397.85, based on a FY28 P/E of 12.6 times.
2. One 97 Communications Ltd. (Paytm)
Bolinjkar underscored that Paytm has significantly strengthened its business fundamentals over the past 12-15 months. Key metrics show substantial growth: the merchant base expanded from 40.7 million in Q1FY25 to 47 million in Q2FY26, while payment GMV surged from ₹4.21 trillion to ₹5.67 trillion. Device penetration also increased from 10.9 million to 13.7 million in the same period.
The company is targeting 25-30% revenue growth and a 15% EBITDA margin by FY28. Bolinjkar believes a favourable revenue mix, cost optimisation driven by technology and AI, and operating leverage will propel profitability. His FY28 price target for Paytm is ₹2,074 (a 56% upside from ₹1,332.10), valuing it at 62.8 times FY28 P/E.
3. V-Mart Retail Ltd.
The value retail chain V-Mart has outlined a clear growth strategy. The company plans to expand its store network from 510 to 660 stores by FY28, backed by a capital expenditure of ₹350 crore. Bolinjkar projects V-Mart's revenue to grow at a 16.1% CAGR, reaching ₹5,094 crore by FY28, driven by a 14.6% CAGR in sales volume and stable average selling prices.
This growth aligns with the company's focus on boosting sales volume while maintaining competitive pricing. EBITDA and net profit are forecast to grow at a CAGR of 16.6% and 33.7%, respectively, with margins improving. The FY28 price target is set at ₹1,069, offering a 54% upside from ₹695.45, based on a FY28 P/E of 77.6 times.
4. CESC Ltd.
CESC is entering a high-growth phase, supported by power sector reforms and a diversified portfolio spanning regulated distribution, thermal generation, and renewables. The company has ambitious green energy goals: targeting 3.2 GW of renewable capacity by FY29 and 10 GW by FY32. It also plans a 3 GW integrated solar manufacturing facility by 2027.
Backed by a massive ₹320 billion capex plan over five years, CESC aims to nearly double its PAT to ₹3,000 crore by FY30, implying a CAGR of nearly 16%. Bolinjkar forecasts strong revenue and EBITDA growth with margin expansion. His FY28 price target for CESC is ₹243 (a 42% upside from ₹170.77), based on a FY28 EV/EBITDA multiple of 9 times.
5. DCB Bank Ltd.
Bolinjkar highlights DCB Bank as a niche, well-capitalised private bank with a secure loan book. Approximately 95% of its advances are secured, which is expected to keep defaults and credit costs minimal, reducing vulnerability to credit risk during market fluctuations.
The bank's total deposits are projected to grow at an 18.9% CAGR to ₹1 trillion, while advances may reach ₹85,736 crore (19% CAGR). Asset quality is comfortable, and Return on Assets (RoA) is trending towards 1%. Bolinjkar recommends the stock for its combination of high-teens loan growth, improving operating leverage, and risk-adjusted profitability, available at attractive valuations. The FY28 price target is ₹228, suggesting a 25% upside from ₹182.50.
Navigating the Market in 2026
In conclusion, while short-term volatility may persist due to external factors, the medium-term outlook for Indian equities is bolstered by fundamental strengths. The expert recommendations underscore a strategy focused on companies with clear growth trajectories, strong operational metrics, and resilience in their respective sectors. For long-term investors, such a stock-specific approach, emphasising quality and fundamentals, could be key to building wealth amidst the expected market churn in 2026 and beyond.
