4 Fundamentally strong stocks with upside potential to buy during corrections
4 Fundamentally strong stocks with upside potential to buy during corrections
Market corrections present strategic opportunities to acquire fundamentally robust companies at attractive valuations. These temporary price dislocations allow investors to build positions in quality businesses with proven track records, strong balance sheets, and sustainable competitive advantages—setting the stage for potential long-term wealth creation.
1. Titan Company Ltd
Titan Company Limited, founded in 1984, is a leading Indian manufacturer of fashion accessories, including jewellery, watches, and eyewear. Part of the Tata Group, Titan is headquartered in Bangalore and commands significant market share in its segments. Its key brands include Titan for watches, Tanishq for jewellery, Fastrack for youth-focused accessories, and Titan Eyeplus for eyewear.
The company is India’s largest branded jewellery manufacturer and the world’s fifth-largest watchmaker as of 2022. In 2023, Titan divested its subsidiary Favre-Leuba and ventured into health tech by acquiring a stake in CueZen, demonstrating strategic diversification. With a strong brand portfolio and innovative growth strategies, Titan remains a market leader in India’s fashion and lifestyle sectors.
Motilal Oswal maintains a “BUY” rating on Titan with a target price of Rs. 3,850, based on 60x Sep’26E EPS. The rationale emphasises Titan’s superior competitive positioning, strong brand recall, and consistent outperformance, projecting a 17% CAGR in revenue over FY24-27E despite margin pressures.
Titan Company Limited’s revenue from operations has increased by 25.9 percent from Rs. 40,575 crore in FY23 to Rs. 51,084 crore in FY24. The company’s net profit has increased from Rs. 3,274 crore in FY23 to Rs. 3,496 crore in FY24, which has grown by 6.8 percent.
With a market capitalisation of Rs. 2,85,867 crores, Titan Company Limited’s share price closed at Rs. 3,220 per equity share.
2. Nestle India Ltd
Nestle India Limited, a subsidiary of Switzerland-based Nestlé S.A., is a prominent player in the Indian food and beverage market. Established in 1866, Nestle India offers a diverse range of products, including dairy, coffee, infant nutrition, and culinary items. Its key brands—Maggi, Nescafé, Munch, and KitKat—are household names across the country. Renowned for quality and innovation.
The company enjoys a strong market presence and consistently delivers robust financial performance, driven by high demand across segments. With its focus on customer satisfaction and product diversification, Nestle India continues to strengthen its leadership position in the competitive Indian FMCG sector.
Axis Securities maintains a “BUY” rating on Nestle with a target price of Rs. 2,640 . Despite short-term turbulence, they’re optimistic about long-term prospects, citing an 11% upside potential, though acknowledging challenges in commodity prices and margin pressures.
Nestle India Limited’s revenue from operations has increased by 27.5 percent from Rs. 19,126 crore in FY23 to Rs. 24,394 crore in FY24. The company’s net profit has increased from Rs. 2,999 crore in FY23 to Rs. 3,933 crore in FY24, which has grown by 31.14 percent.
With a market capitalisation of Rs. 2,12,693 crores, Nestle India Limited’s share price closed at Rs. 2,206 per equity share.
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3. Varun Beverages Ltd
Varun Beverages Limited, established in 1995, is a key franchise bottler for PepsiCo in India and one of the largest globally. The company produces and distributes a wide range of carbonated and non-carbonated beverages, including Pepsi, Mountain Dew, Tropicana, and Aquafina. With an extensive network of manufacturing plants and distributors, Varun Beverages has effectively tapped into the growing demand for packaged beverages in India. Its focus on expanding reach and improving operational efficiency has solidified its position in the competitive beverage industry. The company continues to leverage its partnership with PepsiCo and its robust market presence to sustain growth.
Axis Securities maintains a “BUY” rating on VBL with a target price of Rs. 700. They’re bullish on VBL’s African expansion through acquisitions in Tanzania and Ghana, projecting 23% upside potential based on their expanding PepsiCo bottling operations.
Varun Beverages Limited’s revenue from operations has increased by 21.7 percent from Rs. 13,173 crore in FY23 to Rs. 16,043 crore in FY24. The company’s net profit has increased from Rs. 1,550 crore in FY23 to Rs. 2,102 crore in FY24, which has grown by 35.6 percent.
With a market capitalisation of Rs. 2,03,370 crores, Varun Beverages Limited’s share price closed at Rs. 626 per equity share.
4. Sun Pharmaceutical Industries Ltd
Sun Pharmaceutical Industries Ltd, founded in 1983, is India’s largest pharmaceutical company and a major global player. The company specializes in developing, manufacturing, and marketing a wide range of pharmaceutical products, including specialty drugs, generics, and over-the-counter medicines. With exports to over 150 countries, Sun Pharma has established a strong international footprint. Known for its innovation-driven approach.
The company invests heavily in R&D to create groundbreaking treatments. Sun Pharma’s diverse product portfolio and strategic focus on speciality pharmaceuticals ensure its continued leadership in the pharmaceutical industry while addressing global healthcare challenges.
ICICI Direct upgrades Sun Pharma to “BUY” with a target price of Rs. 2,185 (42x FY26E EPS) and an upside of 17%. Their bullish stance stems from strong specialty portfolio growth, domestic formulation leadership, strategic R&D investments, and robust margin expansion, particularly in their global specialty business.
Sun Pharmaceutical Industries Limited’s revenue from operations has increased by 10.5 percent from Rs. 43,886 crore in FY23 to Rs. 48,497 crore in FY24. The company’s net profit has increased from Rs. 8,513 crore in FY23 to Rs. 9,610 crore in FY24, which has grown by 12.8 percent.
With a market capitalisation of Rs. 4,25,642 crores, Sun Pharmaceutical Industries Limited’s share price closed at Rs. 1,774 per equity share.
Written By Fazal Ul Vahab C H
Disclaimer
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