Mehta Equities Recommends 5 Stocks for Long-Term Investment with Up to 30% Return Potential

The Indian stock market faces pressure from multiple headwinds, including concerns over a global trade war following Trump's aggressive stance on Greenland, unimpressive Q3 earnings, and sustained foreign capital outflows. The Sensex has declined over 750 points across two consecutive sessions, while the Nifty 50 has dropped below 25,450. Prashanth Tapse, Senior VP (Research) at Mehta Equities, notes that sentiment remains fragile amid uncertainty over tariff threats and ahead of the US Supreme Court's decision on tariff policy.

Market Outlook and Strategy

Tapse expects volatility to persist, with markets likely remaining rangebound unless the Nifty decisively crosses the 25,851 mark. Despite near-term challenges, he recommends focusing on high-quality stocks for long-term investment, anticipating healthy double-digit upside potential over a 12-18 month timeframe.

Stock Recommendations with Target Returns

The expert has identified five stocks across different sectors that offer compelling long-term growth opportunities:

Detailed Stock Analysis

Belrise Industries - Auto Component Leader

Belrise Industries operates as a differentiated auto-component manufacturer with a diversified product portfolio spanning metal forming, polymer, suspension, and mirror systems. The company maintains long-standing relationships with leading OEMs across two-wheelers, passenger vehicles, and commercial vehicles, providing revenue visibility and scale benefits. Structural tailwinds from vehicle premiumization, localization, and increasing regulatory complexity support medium-to-long-term growth prospects.

Groww - Fintech Growth Story

Groww is positioned to capitalize on the structural shift in India's household savings toward financial assets. The platform's strong brand recall, intuitive digital-first interface, and expanding product suite across equities, mutual funds, ETFs, and credit drive rapid user acquisition and rising engagement. The company's focus on younger, first-time investors provides a long runway for monetization through cross-selling and premium offerings.

Tenneco Clean Air India - Emission Control Solutions

Tenneco Clean Air India serves as a market-leading supplier of highly engineered, technology-intensive emission control solutions to Indian and global OEMs. The company benefits from strong global parentage and long-standing customer relationships. Its diversified portfolio of proprietary products positions it well to benefit from stricter emission norms, vehicle premiumization, and a growing OEM customer base.

Bharti Airtel - Telecom Market Leader

Bharti Airtel maintains a strong market position across India, Africa, and enterprise segments. The company benefits from industry consolidation, which supports rational competition and pricing discipline. Periodic and calibrated tariff hikes are expected to structurally lift ARPU, translating into sustained revenue growth and operating leverage. Continued investments in 5G, network quality, and digital platforms strengthen customer stickiness.

Mahindra & Mahindra - Diversified Auto Giant

Mahindra & Mahindra holds leadership positions in tractors and SUVs, supported by strong brand equity and deep rural and urban market penetration. The company benefits from structural tailwinds including rising rural incomes, infrastructure spending, and preference for utility vehicles. Its focus on premium SUVs, new platform launches, and disciplined capital allocation enhances margin visibility.

Investment Rationale

Tapse emphasizes that these recommendations are based on companies' strong fundamentals, market positioning, and ability to benefit from structural growth trends. The selected stocks span different sectors, providing diversification while maintaining focus on quality businesses with sustainable competitive advantages and clear paths to earnings growth over the recommended investment horizon.