The Indian stock market has been making headlines with sharp moves across sectors, but the key question for investors is whether recent breakouts can sustain their momentum or whether stocks are approaching important supply zones.For investors searching for the best stocks to buy now in India, the latest high-conviction portfolio presented by Sumil Mehta of Mirae Asset Sharekhan focuses on five companies backed by a combination of strong business fundamentals, technical momentum, improving earnings prospects and order-book visibility.
1. APL Apollo Tubes
Stock: APL Apollo Tubes
Buy Zone: ₹1,900–₹1,915
Support: ₹1,834
1-Year Fundamental Target: ₹2,327
APL Apollo Tubes is the first stock in the high-conviction portfolio and is being highlighted for the company’s increasing focus on value-added, higher-margin products.At first glance, steel pipes may appear to be a relatively conventional business. However, the key investment argument is the change in the company’s product mix.
According to the analyst’s presentation, APL Apollo’s high-margin product mix has increased to approximately 65% and is expected to move toward 75–80%.
- A higher contribution from value-added products can potentially improve pricing power and make earnings more resilient to fluctuations in commodity prices.
- Another important metric highlighted is profit per ton, which has remained above ₹5,000 despite volatility in steel prices.This suggests that the company is increasingly focusing on products that can generate better profitability rather than competing purely on commodity volumes.
The suggested buying zone is around ₹1,900–₹1,915, with ₹1,834 identified as an important support level.
The fundamental one-year target is approximately ₹2,327.
2. Blue Star
Stock: Blue Star
Buy Zone: ₹1,690–₹1,710
Support: ₹1,642
1-Year Fundamental Target: ₹2,060
The second stock is Blue Star, which provides exposure to India’s growing air-conditioning and cooling-products market.
According to the analyst, festival and summer sales increased approximately 30–35% compared with the previous year, indicating strong dealer restocking.
The company also has an order book of approximately ₹4,664 crore, providing visibility into future business activity.
- India’s rising temperatures, increasing air-conditioner penetration and growing consumer demand for cooling products are important structural factors for the sector.
- strong sales momentum and a substantial order book potentially provides greater earnings visibility.
- Dealer inventory replenishment is also an important indicator because it suggests that channel partners are preparing for continued demand.
The fundamental one-year target is approximately ₹2,060.
3. ICICI Bank
Stock: ICICI Bank
Buy Zone: ₹1,430–₹1,445
Support: ₹1,388
1-Year Fundamental Target: ₹1,750
The third stock is ICICI Bank, one of India’s largest private-sector banks.
The investment thesis centers on the bank’s ability to maintain strong growth despite some moderation in portions of the retail-loan market.
The analyst highlights stronger performance in business banking, corporate loans and rural lending during the latest quarter.
Why ICICI Bank?
One of the most important positives is that loan growth has remained healthy even as some segments of the retail-credit market have slowed.The bank has also maintained relatively stable margins while improving operational efficiency.
This combination of credit growth, margin resilience and cost control can be important for profitability and return ratios.
The stock has subsequently maintained positive momentum, with the analyst suggesting that smaller corrections could provide opportunities for investors looking for better risk-reward entry points.
The suggested buying range is ₹1,430–₹1,445.
The key support level is ₹1,388, while the one-year fundamental target is ₹1,750.
4. Lumax Auto Technologies
Stock: Lumax Auto Technologies
Buy Zone: ₹1,630–₹1,655
Support: ₹1,584
1-Year Fundamental Target: ₹2,130
The fourth stock in the portfolio is Lumax Auto Technologies, an auto-component company benefiting from increasing content per vehicle.The key investment argument is that the company is attempting to grow faster than the overall automobile industry by supplying more components per vehicle.
This allows the company to increase its market share even if the overall automobile market grows at a slower rate.
- A major factor highlighted by the analyst is the company’s three-year order book of approximately ₹1,450 crore.
- A strong order book can provide visibility into future revenue and earnings and gives the company a clearer pipeline of business over the coming years.
- The expectation of healthy earnings growth further strengthens the fundamental case.
The suggested buying levels are around ₹1,630–₹1,655, with support at approximately ₹1,584.
The one-year fundamental target is ₹2,130.
5. UltraTech Cement
Stock: UltraTech Cement
Buy Zone: ₹11,900–₹12,000
Support: ₹11,520
1-Year Fundamental Target: ₹14,200
The fifth and final stock is UltraTech Cement, India’s largest cement producer.
The investment thesis is based largely on scale, volume growth, acquisitions and improving profitability.
According to the analyst, UltraTech is growing volumes significantly faster than the broader cement industry.
The company recorded approximately 13% volume growth, compared with roughly 7–8% for the rest of the sector.
Why UltraTech Cement?
Scale is a major competitive advantage in the cement industry.UltraTech’s recent acquisitions are also expected to contribute to its earnings and profitability.One of the most notable figures highlighted by the analyst is that profit per ton has approximately doubled in one year.
The company’s green-energy strategy is another long-term factor. UltraTech is targeting approximately 85% green-energy usage by FY30.
Such a consolidation pattern can potentially precede another significant price move if the stock breaks out decisively. The suggested buying range is ₹11,900–₹12,000, with ₹11,520 as the key support.
