5 Stocks To Buy For Long Term: Brokerage identifies strong fundamentals, targets suggest up to 41% gains — See list

Sharekhan continues to remain constructive on ITC, highlighting the company’s mix of cigarettes, packaged foods, agribusiness, personal care and paperboard operations. Despite market volatility, the brokerage expects ITC to deliver predictable cash flows driven by cigarette volume stability and expansion in FMCG profitability. The company has strengthened its distribution and premiumisation strategy, while investments in hotels and digital integration create long-term optionality. With a target price of Rs 505, the brokerage sees a 25 per cent upside, calling ITC a steady compounder suited for conservative portfolios.

Samhi Hotels has emerged as one of the more promising plays in the hospitality sector’s ongoing upcycle. The company specialises in mid-scale and upscale business hotels across major Indian cities, operating through partnerships with international brands. Sharekhan believes the combination of improving occupancy trends, rising average room rates and operating leverage places Samhi in a favourable position for FY26. Its asset-management-focused model helps improve margins as scale expands. With a target price of Rs 246, the brokerage projects up to 41 per cent upside, citing stronger demand in business travel and improving profitability metrics.

Divis Laboratories continues to hold its position as one of the world’s leading manufacturers of generic APIs, supported by deep R&D capabilities and decades-long relationships with global innovators. The brokerage notes that Divis remains a defensive, high-quality pharma play due to its strong balance sheet and ability to maintain margins even during industry-wide volatility. The company supplies to over 100 countries, and its operational discipline allows it to sustain growth without stressing profitability. With a target price of Rs 7,375, Sharekhan expects Divis to benefit from recovery in the custom synthesis business and stronger API pipeline visibility.

Varun Beverages, PepsiCo’s largest franchise bottler outside the US, remains a dominant player across carbonated drinks, juices and value-added dairy beverages. The brokerage expects the company’s network expansion, entry into newer regions and wider product portfolio to support volume growth despite near-term moderation. Its ability to leverage operating efficiencies and expand into rural markets keeps long-term earnings visibility intact. With a target price of Rs 579, Sharekhan forecasts a 23 per cent upside over the next year as margins stabilise and demand normalises across seasons.

Zydus Wellness continues to build on its leadership across health, nutrition and personal care with established brands such as Glucon-D, Sugar Free, Complan, Nycil and EverYuth. Sharekhan notes that the company is sharpening focus on premium categories and expanding distribution into high-growth urban and semi-urban markets. Margin improvement, product innovation and stronger market share across categories position Zydus for sustained earnings growth. With a target of Rs 552, the brokerage expects up to 30 per cent upside over the next 12 months.