New Year Stock Picks 2026: Siddharth Sedani’s top 5 shares from Auto, BFSI, and IT sector with up to 48% upside

According to Sedani, five sectors stand out for 2026: Auto & Auto Ancillaries, BFSI, Capital Goods, Healthcare, and Technology. These sectors are expected to deliver strong growth due to macroeconomic trends, government policies, and sector-specific opportunities.

In the Auto & Auto Ancillaries sector, Minda Corporation is recommended. The stock is trading at Rs 574 with a target of Rs 750, offering around 30 per cent upside. The company dominates the two-wheeler component market with a 40 per cent share in lock systems. It has a robust order book of Rs 36,000 crore, high-margin EV components, and a capital expenditure plan of Rs 2,000 crore.

In BFSI, Cholamandalam Financial Holdings is suggested at Rs 1,815 with a target of Rs 1,920, giving potential gains of 6 per cent. The company operates in vehicle finance, personal loans, and loans against property. It has a return on assets of 2.5 per cent and a rapidly growing AUM at 24 per cent CAGR. Cholamandalam has also started gold loans, adding to its diversified revenue streams.

For Capital Goods, CG Power & Industrial Solutions is trading at Rs 648.15 with a target of Rs 960, offering around 48 per cent upside. The company holds a 35 per cent share in the transformer business and has a strong order book of nearly Rs 15,000 crore. New developments, including a semiconductor plant and industrial capex, add to its growth potential.

In Healthcare, Max Healthcare is at Rs 1,044.90 with a target of Rs 1,300, giving about 25 per cent upside. The company has a current capacity of 6,500 beds and plans expansion, including entering the Pune market. Average revenue per occupied bed is Rs 78,000 per day, and operating profit is expected to grow at 26 per cent CAGR.

Finally, in Technology, Mphasis is trading at Rs 2,790.75 with a target of Rs 3,400, offering around 22 per cent upside. The company is set to benefit from rising IT spending, a weaker rupee, and a surge in AI-related deals. It has a strong return on equity of 21 per cent and a deal pipeline of $1.28 billion in the first half of 2025.

Sedani advised that these five stocks, across five high-potential sectors, are suitable for a New Year SIP strategy. They offer growth, diversification, and long-term wealth creation opportunities, making them ideal for investors starting 2026 on a strong footing.