7 Stocks to Buy in 2026: Brokerage's top picks from Pharma, FMCG, IT, with up to 40% returns - ITC, Biocon in the list

Sharekhan’s latest fundamental update highlights seven stocks with solid long-term potential. These picks are expected to deliver attractive returns over a 12-month horizon. Each stock has been carefully analysed for its financial health, business growth, and sector performance.

Torrent Pharmaceuticals closed at Rs 4,222.35 with a target price of Rs 4,735, offering an upside of 12 per cent. The company delivered a robust Q3 and is awaiting acquisition synergies. Its strong execution and pipeline growth make it a stable long-term buy for investors looking for steady returns.

Divis Laboratories closed at Rs 6,293.60 with a target of Rs 7,375, giving a potential upside of 17 per cent. The company has consistently demonstrated operational efficiency and strong execution post-merger. Analysts see it as a reliable growth story in the pharmaceutical sector.

Tech Mahindra closed at Rs 1,480.95 with a target of Rs 2,000, giving an upside of 35 per cent. The IT services company is benefiting from digital transformation trends globally. Analysts see strong growth potential due to expanding enterprise solutions and steady deal wins.

Biocon closed at Rs 382.20 with a target of Rs 466, providing an upside of 22 per cent based on post-merger execution. The company continues to focus on biologics and biosimilars, which are driving revenue growth. Its disciplined approach to expansion makes it an attractive addition for long-term portfolios.

Indigo Paints closed at Rs 965.25 with a target of Rs 1,350, offering a 40 per cent upside. Improved margins in Q3 and a positive outlook underpin its buy recommendation. The company’s focus on premium products and regional expansion supports sustainable growth, making it a strong pick for investors.

Varun Beverages closed at Rs 454 with a target price of Rs 579, translating to a 25 per cent upside. Better margins in recent quarters and an improving outlook have made it a preferred pick. The company’s market expansion and product diversification support its growth trajectory.

ITC closed at Rs 325.75 with a target of Rs 400, offering a 23 per cent upside. The company benefits from a diversified business model, including FMCG, hotels, and agri-business. Strong margins and continued innovation in the FMCG segment make ITC a reliable long-term investment.