5 High-Conviction Stocks That Could Make 2026 A Breakout Year For Your Portfolio

After a year of consolidation, the Indian equity markets are starting to appear more promising and opportunity-rich as 2026 approaches. The stage is prepared for the next phase of market growth with falling inflationary pressures, prospects of a more favorable global monetary environment, ongoing government capital expenditures, and more company earnings visibility. According to Religare Broking Ltd.'s research experts, investors may be able to take advantage of new possibilities in 2026 and beyond by focusing on fundamentally sound, high-conviction stocks across key sectors.

Stock Market Outlook In 2026

"As we enter 2026, the outlook appears more constructive. Corporate earnings are expected to broaden and strengthen, aided by operating leverage, moderation in input costs, sustained government capital expenditure, and a gradual revival in private investment. Besides, we expect the positive impact of reforms such as personal income tax relief and GST rationalisation to begin reflecting on the ground. Easing inflationary pressures and a potentially more supportive global monetary environment could further improve demand conditions and investor sentiment. While geopolitical and trade-related uncertainties may persist, India's structural growth drivers remain intact," commented the research analysts of Religare Broking.

"In this environment, market volatility should be viewed as an opportunity rather than a risk. Investors are advised to focus on accumulating fundamentally strong companies with healthy balance sheets, earnings visibility, and long-term growth drivers. In this report, we have identified select stocks across sectors that are well-positioned to deliver robust performance in 2026, and we recommend accumulating these names to benefit from the next leg of the market cycle," they further added.

New Year Stock Picks: Stocks To Buy For 2026

Below are the 5 stocks recommended to buy by the research analysts of Religare Broking.

Mahindra & Mahindra

"M&M's medium-to-long-term outlook remains robust, driven by product innovation, operational efficiency, and strong market positioning. New SUV launches, GST-led affordability, and a diversified portfolio across SUVs, tractors, and LCVs are expected to sustain strong demand and revenue stability. Higher volumes, disciplined cost management, and limited discounting should support margin expansion, while healthy cash flows provide flexibility for strategic investments in EVs and technology. With valuations reflecting fair growth potential, we initiate coverage with a Buy rating and a target price of Rs 4,161, expecting FY25-27E Revenue, EBITDA, and PAT to grow at a CAGR of 15.7%, 21.7%, and 21.7% respectively," commented the research analysts of Religare Broking.

Kotak Mahindra Bank

"Kotak Mahindra Bank is well placed for steady, risk-adjusted growth, supported by its shift towards secured and flow-led lending, stabilizing asset quality and a strong granular liability franchise. Margin pressures are expected to ease as the rate cycle matures, while improving credit trends enhance earnings visibility. Its diversified subsidiaries across asset management, broking, insurance and vehicle finance add meaningful growth optionality. With valuations now below long-term averages after a prolonged time correction, the risk-reward is favorable. We reinitiate coverage with a Buy rating and a target price of Rs 2,487, based on our SOTP valuation, valuing the standalone bank at 2.5x FY27E adjusted book value," recommended the research analysts of Religare Broking.

Lupin

"Lupin is well-positioned for medium-to-long-term growth, driven by global expansion, an improving product mix, and focus on high-value therapies. Regulatory approvals in the US and Europe, along with traction in emerging markets, provide stable revenue visibility. With ongoing R&D and disciplined execution, we expect FY25-27E Revenue, EBITDA, and PAT to grow at a CAGR of 16.7%, 33.1%, and 41.5% respectively. We initiate coverage with a Buy rating and target price of Rs 2,508 (17.3x FY27E P/E)," recommended the research analysts of Religare Broking.

ICICI Prudential Life Insurance

"ICICI Prudential Life Insurance's growth strategy of protection-led product mix, multi-channel distribution expansion, and operational discipline positions it well for sustainable earnings growth. We expect APE/VNB/PAT to grow at a CAGR of 15.6%/19%/11.4% over FY25-FY27E, supported by rising protection penetration, cross-selling opportunities, and improving persistency metrics. Operating leverage, cost efficiency, and strong solvency provide earnings visibility, while a stable product mix reduces sensitivity to capital market volatility. Based upon these factors, we initiate a Buy rating with a target price of Rs 800 valuing ICICI Pru Life at 2x FY27E P/EV," recommended the research analysts of Religare Broking.

JK Lakshmi Cement

"JKLC's growth strategy of calibrated capacity expansion, premiumisation and operational discipline positions it well for sustained earnings growth. We expect Revenue/EBITDA/APAT to grow at a CAGR of 25.4%/57.9%/95.1% over FY25-FY27E, supported by volume CAGR of 12% and incremental realization gains. EBITDA margins should expand as capacity utilisation improves from current levels and management initiatives on fuel optimisation and green power usage lower costs. We initiate the coverage with a Buy rating at target price of Rs 979, valuing JKLC at 5.3x FY27E EV/EBITDA, implying attractive upside potential as execution translates into improved profitability metrics," commented the research analysts of Religare Broking.

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