Independence Day stock picks: BEL, PFC to Hero Motocorp - SMC expert recommends THESE 11 stocks to buy
On August 14, the Nifty managed to hold above the 24,600 mark, with the Sensex closing 57.75 points, or 0.07%, higher at 80,597.66, and the Nifty ending 11.95 points, or 0.05%, up at 24,631.30.
On the occasion of 79th Independence Day, Seema Srivastava, Senior Research Analyst at SMC Global Securities, has recommended 11 stocks to buy for long-term prospective.
Larsen & Toubro (L&T) delivered a strong Q1 FY26 performance, with PAT rising 30% YoY to ₹ Rs.4,379 crore, driven by improved execution across segments, robust order inflows, and efficient treasury management. Revenue growth was led by Energy (+47% YoY) and Hi-Tech Manufacturing (+75% YoY), while other income surged 47% YoY on higher yields. The company secured record quarterly orders worth Rs.94,453 crore, up 33% YoY, with international business contributing 52% of inflows. Orders spanned thermal BTG, renewables, power T&D, hydrocarbons, hydel, non-ferrous metals, and real estate projects, showcasing L&T's diversified presence. The consolidated order book stood at Rs.6.12 lakh crore (+6% QoQ), with 46% from overseas markets, providing multi-year revenue visibility. Strong PBT growth (+25.3% YoY) and rising return ratios reflect operational efficiency and disciplined execution. Strategic expansion into high-potential sectors such as semiconductors, data centers, green energy, and digital platforms positions L&T to benefit from India's infrastructure boom and global demand for sustainable, tech-driven solutions. With unmatched capabilities in engineering, manufacturing, and project management, alongside a record order pipeline, L&T is well-placed for sustained growth over the next five years, making it a compelling long-term investment in India's infrastructure and industrial growth story.
Infosys reported Q1 FY26 revenues of Rs.42,279 crore, up 7.5% YoY (3.8% in constant currency) and 2.6% QoQ, driven by strong enterprise AI capabilities, client consolidation wins, and deep customer relationships. Large deal TCV stood at $3.8 billion, with 55% net new, underscoring healthy demand visibility. Operating margin remained resilient at 20.8%, though slightly lower by 30 bps YoY and 20 bps QoQ, reflecting continued investments under Project Maximus to drive strategic priorities. EPS grew 8.6% YoY to Rs.16.70, while FCF of Rs.7,533 crore declined 17.7% YoY but maintained robust conversion at 108.8% of net profit, marking the fifth consecutive quarter above 100%. Management guided for FY26 revenue growth of 1–3% in constant currency and operating margins between 20–22%, supported by proactive currency hedging and cost discipline. While near-term growth remains moderated by macro uncertainties, Infosys's strong order book, expanding AI and digital portfolio, execution strength, and focus on profitable growth position it well for long-term value creation. Strategic investments, coupled with stable margins and consistent cash generation, reinforce its ability to navigate market volatility while sustaining its competitive leadership in the global IT services space.
Axis Bank's Q1 FY26 performance reflected steady business growth but softer profitability metrics. Advances grew 8% YoY and 2% QoQ, with focus segments—SBB, SME, mid-corporate, rural, personal loans, and credit cards—rising 11% YoY. SME loans were up 16% YoY, mid-corporate 24% YoY, and corporate loans 9% YoY. Deposit growth was 9% YoY, led by term deposits (+12%), while CASA growth was modest at 3–9%. NII was flat YoY (+1%) and down 2% QoQ, with NIM declining 17 bps QoQ to 3.80%. Asset quality weakened marginally as GNPA rose to 1.57% and NNPA to 0.45%, while PCR eased to 71%. Slippages were elevated with gross slippage ratio at 3.13% and net credit cost at 1.38%. Operating profit grew 14% YoY to Rs.11,515 crore, supported by 2% cost growth, though net profit declined 4% YoY to Rs.5,806 crore due to higher provisions. While near-term earnings are impacted by margin pressure and asset quality moderation, Axis Bank's diversified loan mix, strong positioning in high-growth segments, healthy deposit base, and disciplined cost management provide a solid platform for sustainable long-term growth once credit costs normalize and interest rate pressures ease.
KEC International began FY26 with strong operational and financial momentum, reporting a 42% YoY jump in PAT to Rs.125 crore and a 41% rise in PBT to Rs.158.5 crore in Q1, driven by healthy revenue growth and margin expansion. EBITDA grew 19% YoY to Rs.350 crore, with margins improving to 7% from 6.5% a year ago, reflecting better execution and cost control. Order intake during the quarter stood at Rs.5,517 crore, mainly from transmission & distribution and civil segments, taking the order book to Rs.34,409 crore, supplemented by an L1 pipeline exceeding Rs.6,000 crore. The company's total executable pipeline, including L1, now surpasses Rs.40,000 crore, ensuring robust revenue visibility. Net debt reduced by ~Rs.250 crore YoY to Rs.5,348 crore despite double-digit revenue growth, underscoring improving financial discipline, although net working capital days rose slightly to 128 from 122. Management remains optimistic about demand across core businesses, supported by a diversified portfolio, healthy tender pipeline, and infrastructure spending momentum. While manpower shortages and geopolitical factors remain near-term challenges, KEC's strong execution track record, deleveraging focus, and large, diversified order backlog position it well for sustained profitable growth, making it an attractive long-term play in the global EPC and infrastructure space.
Trent Ltd delivered a resilient Q1 FY26 performance with PAT up 9% YoY to Rs.430 crore and revenue from operations (excluding Trent Hypermarket) rising 18.98% to Rs.4,883.48 crore, driven by expansion across its Westside, Zudio, and lifestyle concepts. On a standalone basis, profit grew 23.5% on a 19.8% revenue rise, supported by steady gross margins and an EBIT margin improvement to 11.4%. The company operates over 1,000 large-format fashion stores in 242 cities, including 248 Westside, 766 Zudio (two in UAE), and 29 other outlets, with a total retail footprint exceeding 13 million sq. ft. While like-for-like growth in fashion was in low single digits, strong contributions came from emerging categories such as beauty, innerwear, and footwear (21% of revenue) and digital sales (+35% YoY, 6% of Westside revenue). Strategic focus remains on Tier 2 and Tier 3 cities, technology-led efficiency, and enhancing customer experience. The Star food retail business now derives over 70% of revenues from own brands. Despite seasonal and geopolitical headwinds, Trent's scale, brand strength, omni-channel integration, and disciplined expansion position it strongly for sustained long-term growth and value creation in India's evolving retail landscape.
Power Finance Corporation (PFC) reported a strong Q1 FY26 performance with NIM improving 13 bps YoY to 3.68% and asset quality strengthening, as GNPA fell to 1.92% and NNPA to 0.38%, both entirely related to private sector exposure. Loan assets grew 16% YoY to Rs.5,49,786 crore, led by a 17% rise in distribution loans to Rs.2,22,144 crore, 13% growth in generation loans to Rs.2,59,667 crore, and 8% in transmission loans to Rs.38,176 crore. Private sector loans surged 39% to Rs.1,28,035 crore, while government sector loans rose 10% to Rs.4,21,751 crore. Disbursements jumped 90% YoY to Rs.37,023 crore, with strong growth across segments—generation (+106%), transmission (+81%), and distribution (+98%). Borrowings increased 15% to Rs.4,60,372 crore, mainly via bonds (+13%) and term loans (+19%). While yield on assets eased slightly to 10.01%, cost of funds fell to 7.40%, supporting margin expansion. With a capital adequacy ratio of 22.37%, PFC remains well-capitalized to fund India's expanding power infrastructure, particularly in renewable energy, transmission upgrades, and distribution modernization. Its scale, improving asset quality, diversified borrower base, and strong disbursement momentum position it as a key long-term beneficiary of India's energy transition and power sector reforms.
In Q1 FY26, Bharat Electronics Ltd (BEL) posted a 25% year-on-year rise in PAT to Rs.969.13 crore, driven by a significant 560-basis point jump in operating profit margin to 27.9%, aided by effective cost management and a favourable execution mix. Revenue growth was modest at 5.2%, but the company's ability to translate this into strong profitability reflects its operational efficiency and execution excellence. The order book saw a marginal 2.4% YoY decline to Rs.74,859 crore, which warrants monitoring; however, with continued defence modernisation, the government's Make in India programme, and rising export opportunities, BEL remains well positioned to replenish and expand its order pipeline. Its debt-free balance sheet, healthy cash generation, and leadership in radar, missile systems, and electronic warfare give it a strong competitive edge. Strategic diversification into non-defence sectors such as smart cities, solar solutions, and cybersecurity offers additional growth drivers and revenue resilience. Backed by consistent government support for indigenisation and a strong record in executing large-scale projects, BEL stands out as a long-term compounding story in India's defence and allied technology space.
Hero MotoCorp delivered a steady Q1 FY26 performance despite a challenging volume environment, with standalone PAT inching up 0.3% YoY to Rs.1,126 crore and consolidated profit surging 63% to Rs.1,705 crore, aided by a Rs.722 crore one-time gain from dilution in an associate. PBT declined marginally by 0.4% to Rs.1,487 crore, while EBITDA stood at Rs.1,382 crore, with margins stable at 14.4%, reflecting cost discipline. Sales volumes fell 10.94% YoY to 13.67 lakh units, leading to a 4.7% revenue decline to Rs.9,727.8 crore. Despite lower volumes, the company maintained profitability through a richer product mix and operational efficiencies. Its electric mobility business under the VIDA brand gained traction, positioning Hero well in the growing EV segment. Global operations outperformed industry trends, supported by strong demand in key international markets and a widening premium and commuter bike portfolio. Retail demand remained resilient, as indicated by higher VAHAN registrations, and the company expects momentum to improve with the festive season and multiple new product launches ahead. With leadership in the entry and deluxe motorcycle categories, an expanding EV presence, and robust international growth, Hero MotoCorp remains well placed for long-term value creation despite near-term demand volatility in the domestic market.
Siemens Energy India posted a robust Q3SY25 performance, with net profit soaring 80% YoY, revenue rising 20%, and new orders surging 94%, reinforcing its strong foothold in the power and energy infrastructure sector. The company's healthy order backlog of over Rs.10,700 crore and margin expansion to 17.6% reflect operational efficiency and pricing discipline. Strategic investments, including Rs.280 crore to expand high-voltage switchgear capacity in Aurangabad, aim to cater to growing domestic and export demand in power transmission. With a diversified portfolio spanning conventional power, renewables, and emerging hydrogen-based solutions, Siemens Energy India is well-positioned to benefit from the global energy transition. Management credits the exceptional order inflow to buoyant domestic demand, rising exports, and operational excellence, with ongoing capacity additions in its Power Transmission business enhancing growth visibility. Backed by increasing infrastructure investments and India's push for cleaner, reliable energy systems, the company is set to capture sustained long-term opportunities in both domestic and international markets. Its technology leadership, execution capabilities, and strategic capacity expansions strengthen its competitive positioning, making it a strong candidate for investors seeking exposure to the multi-year growth theme in power infrastructure and energy transition.
Canara Bank posted a strong Q1 FY26 performance with PAT rising 22% YoY to Rs.4,752 crore, driven by healthy credit growth, improved asset quality, and higher operating profit (+12.3% YoY to Rs.8,554 crore), despite a 1.7% dip in net interest income to Rs.9,009 crore. PBT grew 16.3% YoY to Rs.6,202 crore, supported by steady margins and lower credit costs. Domestic deposits expanded 8.74% YoY to Rs.13.39 lakh crore, while global advances rose 12.4% to Rs.10.96 lakh crore, led by robust growth in retail, agriculture, and MSME (RAM) lending, which surged 14.9% YoY to Rs.6.31 lakh crore. Asset quality showed significant improvement, with GNPA falling to 2.69% (vs. 4.14% a year ago) and NNPA at 0.63% (vs. 1.24% YoY), backed by a strong provision coverage ratio of 93.17%. Capital adequacy remains healthy at 16.52%, with CET1 at 12.29%, ensuring ample growth capacity. The bank's improving balance sheet strength, prudent provisioning, and sustained loan growth in key segments position it well for long-term profitability. With strong capital buffers, better asset quality, and expanding retail and MSME portfolios, Canara Bank is poised to benefit from India's economic growth cycle and structural credit demand, making it a solid long-term investment candidate.
In Q1 FY26, the company witnessed a temporary slowdown in topline growth, yet maintained strong underlying fundamentals. EBITDA and PAT margins remained steady, reflecting disciplined operations and effective cost control. With a consolidated order book of Rs.754 crore, a debt-free balance sheet, and robust liquidity of Rs.918 crore, the company retains ample financial strength and flexibility to capture growth opportunities. The acquisition of a 76% stake in TISA Aerospace marks a strategic entry into the high-growth UAV and loitering munitions segment, well aligned with global defence trends. Subsidiaries ARIPL and UTS are already contributing operational synergies, with integration progressing as planned. Management remains confident of achieving its H1 FY26 order inflow target of Rs.800 crore, supported by potential orders under the government's emergency procurement programme particularly for anti-drone systems. Backed by a strong order pipeline and favourable policy tailwinds for domestic manufacturing, the company is well placed for long-term expansion. While FY26 is projected to be a consolidation phase, the focus will remain on executing its long-term growth strategy, with a firm commitment to achieving the targeted cumulative revenue of Rs.6,000 crore over the next three year.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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