Vikas Sethi Stock Picks: Expert selects 3 high-conviction shares amid market profit-booking, sees up to 40% upside

Amid profit-taking in the broader market, Sethi Finmart’s Vikas Sethi has identified three stocks for long-term, positional and short-term investors, with potential returns of up to 40 per cent, according to Zee Business.

Why the market corrected

Equity benchmarks slipped from record levels as hopes of an early policy rate cut weakened. India’s GDP expanded 8.2 per cent in the July–September quarter—far ahead of projections—marking the fastest growth in six quarters. While the strong print lifted sentiment initially, the upside was capped after investors assessed that the Reserve Bank of India may prefer to stay cautious on rates. This led to profit-booking across several pockets of the market.

Despite the volatility, Sethi expects select stocks to offer meaningful upside across investment horizons.

Long-term pick: Unicommerce Esolutions

Target price: Rs 180 (12–15 months)
Current price: Rs 128.60
Potential upside: 40 per cent

Sethi has placed his long-term bet on Unicommerce Esolutions, an e-commerce SaaS platform that supports brands, retailers and logistics partners in managing online operations. The company runs a profitable model and offers widely used solutions such as warehouse and inventory management systems, payment reconciliation tools and courier tracking platforms.

Its client base includes Lenskart, Mamaearth, Funeasy, Emami and Cello.

Strong financial metrics—profit margins of 18–19 per cent and return ratios near 28 per cent—support Sethi’s bullish view. With e-commerce adoption rising across sectors, he believes the company is positioned for sustained demand.

Positional pick: TD Power Systems

Positional target: Rs 850
Stop loss: Rs 770
Current price: Rs 792.20

For medium-term investors, Sethi has selected TD Power Systems, a small-cap player supplying generators, electric motors and engineered solutions to the power sector. The company has a diversified order book with clients in Turkey and Bahrain, and its new Karnataka plant—commissioned a quarter ahead of schedule—is expected to contribute meaningfully to growth.

TD Power Systems also services emerging areas such as data centres and AI-linked infrastructure. It is a zero-debt company, with combined FII and DII holdings of nearly 44 per cent, including institutions such as BNP Paribas, Goldman Sachs, HDFC and Nippon.

Short-term pick: Transrail Lighting

Short-term target: Rs 675
Stop loss: Rs 620
Current price: Rs 624.15

Sethi’s short-term recommendation is Transrail Lighting, a small-cap engineering company operating in power transmission, distribution and railway electrification. The firm also supplies stadium lighting and road illumination systems.

With an order book of Rs 15,000–16,000 crore and a healthy execution pipeline, the company posted strong September quarter numbers. Sethi expects more than 8 per cent near-term upside from current levels.