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Amid renewed optimism in Indian equities, analysts have spotlighted New India Assurance, Larsen & Toubro (L&T), and Sterling & Wilson Renewable Energy as compelling long-term investment opportunities. These stocks have been identified for their strong fundamentals, sectoral tailwinds, and improving financial metrics, making them attractive to institutional and retail investors seeking durable portfolio additions.
The recommendations come as foreign institutional investors return to Indian markets, buoyed by macro stability and positive cues from global trade negotiations. Analysts from Zee Business and Livemint have highlighted these three companies for their potential to deliver consistent returns over a multi-year horizon.
Key Highlights From Analyst Coverage
- New India Assurance has delivered a 147 percent return over the past year and is expected to double in value over the next 18 months
- L&T continues to benefit from infrastructure spending and robust order inflows, with analysts projecting sustained earnings growth
- Sterling & Wilson is gaining traction from the global clean energy transition, with improving margins and execution capabilities
- All three stocks are seen as undervalued relative to their long-term growth prospects
New India Assurance: Insurance Sector Momentum
New India Assurance has emerged as a standout performer in the insurance space, driven by strong underwriting discipline and rising premium volumes. The company reported a 67 percent year-on-year increase in quarterly profit, rising from Rs 239 crore to Rs 400 crore, alongside a 12 percent revenue growth.
Analysts point to several factors supporting its long-term potential:
1. Low debt-to-equity ratio and strong solvency margins
2. Undervaluation based on price-to-book and PEG ratios
3. Expanding market share in retail and corporate segments
4. Rising demand for health and motor insurance post-pandemic
The stock is currently trading near Rs 195, with a 52-week high of Rs 271. Analysts expect the price to double over the next 12 to 18 months, citing favorable regulatory reforms and digital adoption in the insurance sector.
Larsen & Toubro: Infrastructure Giant With Consistent Growth
L&T remains a cornerstone of India’s infrastructure and engineering landscape. The company has consistently delivered strong order book growth, with recent wins in transportation, water, and energy projects. Its diversified business model and execution strength make it a preferred pick for long-term investors.
Key drivers include:
- Government push for infrastructure development under PM Gati Shakti
- Robust order inflows from domestic and international markets
- Strong balance sheet and return on capital employed metrics
- Expansion into green hydrogen and data center construction
Analysts expect L&T to maintain double-digit earnings growth over the next three years, supported by margin expansion and operational leverage. The stock is seen as a proxy for India’s capex cycle and industrial revival.
Sterling & Wilson: Renewable Energy Play With Turnaround Potential
Sterling & Wilson Renewable Energy has been gaining attention for its strategic pivot and operational turnaround. The company, backed by the Shapoorji Pallonji Group, has streamlined its global operations and improved execution timelines, particularly in solar EPC projects.
Analysts highlight the following strengths:
1. Exposure to high-growth renewable energy markets across Asia and Africa
2. Improved working capital management and debt reduction
3. Strong pipeline of solar and hybrid energy projects
4. Strategic partnerships with global developers and financiers
The stock has rebounded from its lows and is now viewed as a turnaround candidate with long-term upside. Analysts believe that as clean energy adoption accelerates, Sterling & Wilson could emerge as a key beneficiary of global decarbonization efforts.
Investment Outlook
The endorsement of New India Assurance, L&T, and Sterling & Wilson reflects a broader shift toward fundamental investing in quality businesses with scalable models. With macro indicators stabilizing and sectoral reforms gaining traction, these stocks offer a blend of growth, resilience, and value.
Investors are advised to monitor quarterly earnings, policy developments, and global trends that may influence sector dynamics. For long-term portfolios, these picks represent diversified exposure across insurance, infrastructure, and renewable energy—three pillars of India’s economic transformation.
Sources: Zee Business, Livemint, Screener.in
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