Goldman Sachs (GS), a prominent global brokerage firm, maintains a “marketweight” stance on India, which is equivalent to a “neutral” outlook, suggesting that the worst phase for economic growth and earnings may be over. The firm has also identified 10 stock picks with up to 38 percent upside.
These stocks are well-positioned to capitalize on sectoral tailwinds and are expected to generate strong returns over the next 12 months. Based on GS’s projections, these companies are anticipated to achieve an average earnings growth of 25 percent and a return on equity (ROE) of 24 percent on average between FY25 and FY27E.
Following are the 10 stocks identified by Goldman Sachs with a potential upside of up to 38 percent:
1. HDFC Bank Limited
With a market cap of Rs. 13.9 lakh crores, the stock moved up by nearly 0.3 percent on Wednesday, after GS has recommended a target price of Rs. 2,090 per share on HDFC Bank, representing a potential upside of nearly 15 percent from its current price levels of Rs. 1,820.45.
The brokerage believes the bank is strategically positioned to benefit from liquidity measures implemented by the RBI, which should boost deposit growth across the banking system. GS expects a healthy earnings growth rate of 15 percent CAGR for FY25-27E.
2. InterGlobe Aviation Limited
With a market cap of Rs. 1.95 lakh crores, the stock moved up by 1.2 percent to Rs. 5,069.75 on Wednesday, after GS has recommended a target price of Rs. 5,050 per share on IndiGo. According to the brokerage, IndiGo’s market share gains are sustainable, driven by a steady stream of new airplane deliveries. The airline’s cost leadership is expected to further improve profitability.
3. Adani Ports & Special Economic Zone Limited
With a market cap of Rs. 2.57 lakh crores, the stock moved up by 1.6 percent on Wednesday, after GS has recommended a target price of Rs. 1,400 per share on Adani Port, representing a potential upside of nearly 17 percent from its current price levels of Rs. 1,191.
GS expects a significant boost in port volumes between FY26-27E, driven by the ramp-up at Vizhinjam, Gopalpur, and Tanzania, along with the commissioning of the Colombo port—expected to drive early double-digit volume growth.
4. Apollo Hospitals Enterprise Limited
With a market cap of Rs. 95,265 crores, the stock moved up by nearly 1 percent on Wednesday, after GS has recommended a target price of Rs. 8,025 per share on Apollo Hospitals, representing a potential upside of nearly 21 percent from its current price levels of Rs. 6,625. The brokerage estimates that hospital occupancy will improve by 210 basis points in FY26E, driven by enhanced marketing efforts.
5. Godrej Consumer Products Limited
With a market cap of Rs. 1.14 lakh crores, the stock moved up by nearly 1 percent on Wednesday, after GS has recommended a target price of Rs. 1,370 per share on Godrej Consumer, representing a potential upside of nearly 23 percent from its current price levels of Rs. 1,116.
GS noted an improved turnaround in the company’s first-half performance, driven by enhanced product formulations. It also expects sustained high growth in air care and fabric care, alongside a recovery in EBITDA margins as price hikes in soaps take effect.
Also read: Ashish Kacholia stock with order pipeline of ₹301 Cr & global expansion plans to keep on your radar
6. MakeMyTrip Limited
According to GS, the company has a strong forward outlook, driven by sustained travel demand and favorable tax rates. The favorable industry dynamics are expected to drive margin expansion, while improved shareholder payouts, including an anticipated $300 million in free cash flow (FCF), could lead to an expanded share buyback program.
7. Titan Company Limited
With a market cap of Rs. 2.71 lakh crores, the stock moved up by nearly 1 percent on Wednesday, after GS has recommended a target price of Rs. 3,900 per share on Titan, representing a potential upside of nearly 27 percent from its current price levels of Rs. 3,062. The brokerage pointed out that Titan’s standalone jewelry EBIT growth is projected to accelerate to 20 percent in FY26E, compared to a CAGR of 6.2 percent over FY23-25.
8. Power Grid Corporation Limited
With a market cap of Rs. 2.73 lakh crores, the stock moved up by 2 percent on Wednesday, after GS has recommended a target price of Rs. 375 per share on Power Grid, representing a potential upside of nearly 28 percent from its current price levels of Rs. 293.
The brokerage continues to see significant capex opportunities in transition-linked grid infrastructure, with a projected $500 billion-plus capex requirement for India’s power transmission sector by FY50E.
9. Mahindra & Mahindra Limited
With a market cap of Rs. 3.45 lakh crores, the stock moved up by around 2 percent on Wednesday, after GS has recommended a target price of Rs. 3,800 per share on M&M, representing a potential upside of nearly 37 percent from its current price levels of Rs. 2,777.
Goldman Sachs anticipates significant value unlocking from its unlisted subsidiaries in emerging sectors such as renewable energy and clean mobility. The firm also highlighted the expected increase in supply for the newly launched Battery Electric Vehicle (BEV) range, starting in Q2 CY25.
10. AU Small Finance Bank Limited
With a market cap of Rs. 43,079.7 crores, the stock moved up by around 4 percent on Wednesday, after GS has recommended a target price of Rs. 796 per share on AU Small Finance Bank, representing a potential upside of nearly 38 percent from its current price levels of Rs. 578. GS highlighted the bank as a strong GARP (Growth at a Reasonable Price) play, projecting a robust earnings growth rate of 31 percent CAGR for FY25-27E.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
