SIP stocks to buy for long-term: Ashok Leyland to BoB — SMC expert recommends buying these 5 shares

Indian stock market: Following heavy selling in the Indian stock market on Friday and expectations of a trend reversal on Dalal Street after Jerome Powell’s speech at the Jackson Hole Symposium, which sparked hopes of a US Fed rate cut, some bargain buying is anticipated on Monday.

On the weekly basis, the Indian stock market ended higher for the second consecutive week, with benchmark indices Nifty 50 and Sensex advancing nearly a percent. The Nifty closed at 24,870.10, while the Sensex ended at 81,306.85.

Optimism over a potential GST rate revision lifted sentiment early on and continued to build throughout the week, though some profit-taking in the final session pared back a portion of the gains.

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Looking at the current market scenario, market experts recommended that investors should focus on select stocks and continue accumulating during significant market dips. They also suggested that investing through SIPs could be a smart approach in the current market conditions.

“ A stock SIP allows disciplined investing in equities, leveraging rupee cost averaging and compounding. You choose stocks, set a fixed investment amount, and invest regularly (e.g., monthly). Benefits include disciplined investing, reduced market volatility impact, and flexibility. Stock SIP calculators estimate returns based on historical data, considering factors like stock performance, investment amount, and time period. However, returns aren’t guaranteed and depend on market performance. To manage risk, assess your tolerance, research stocks thoroughly, and diversify your portfolio,” said Seema Srivastava, Senior Research Analyst at SMC Global Securities.

Stocks to buy

Bank of Baroda

BoB offers a steady compounding opportunity, backed by structural loan growth, stable asset quality, and improving efficiency. Short-term profitability may remain volatile due to margin pressures and credit costs, but long-term value creation appears intact as India’s credit cycle strengthens and PSBs regain market share. During Q1Fy26, the bank reported healthy business growth with advances up 13% and deposits up 10% YoY, supported by strong traction in retail (18%), agriculture (16%), and MSME (13%) segments. This diversified credit growth demonstrates a balanced portfolio and lowers concentration risk. Overseas credit also surged 14%, reflecting BoB’s strong international presence, which differentiates it from many other PSBs.

Asset quality remains stable, with Gross NPAs at 2.28% and Net NPAs at 0.60%, significantly improved from 2.88% and 0.69% a year ago. Provision coverage remains robust at 93%, giving comfort on future credit cost normalization. However, fresh slippages ( ₹3,686 crore) indicate that stress pockets still exist, requiring close monitoring in a high-interest rate environment. On the flip side, profitability has been constrained by declining NIMs (2.91% vs 3.18% last year), driven by rising deposit costs and softer yields on advances. While non-interest income grew sharply (88% YoY), particularly from treasury and forex gains, such income is volatile and may not sustain at the same pace. Elevated provisions (+95% YoY) also weighed on net profit growth (just 2% YoY). From a capital adequacy standpoint, BoB remains strong with CRAR at 17.6% and Tier I at 15.2%, providing adequate headroom for growth without immediate equity dilution.

KEC International

KEC offers attractive compounding potential driven by structural infrastructure demand, India’s power transmission expansion, railway modernization, urbanization-led civil projects, and global grid investments. Its established global presence, repeat orders from marquee clients, and leadership in niche areas like Kavach rail safety systems enhance long-term growth visibility. During Q1FY26, The company reported a 42% YoY growth in PAT, with EBITDA rising 19% and margins expanding to 7%. This reflects improving execution efficiency and cost optimization despite global headwinds such as manpower shortages and geopolitical disruptions.

A key strength of KEC lies in its diversified order book of ₹34,409 crore, complemented by an L1 position exceeding ₹6,000 crore, taking total executable potential to over ₹40,000 crore. The company has already crossed ₹8,400 crore in YTD order intake, with wins across T&D, Civil, Railways (notably in the Kavach TCAS initiative), and Cables & Conductors. The breadth of these orders spanning India, the Americas, the Middle East, and high-growth domestic segments which provides strong revenue visibility and cushions against regional risks. Despite 11% revenue growth in the trailing 12 months, net debt reduced by Rs.250 crore to Rs.5,348 crore, reflecting prudent working capital management. While net working capital days rose slightly (128 vs. 122 YoY), the company has managed to balance growth with leverage reduction.

Risks remain in the form of execution delays, commodity price volatility, and geopolitical uncertainties, but the diversified order pipeline likely to mitigates these. For long-term investors, systematic investments in KEC can deliver wealth creation through a combination of earnings growth, margin expansion, and steady order inflows.

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Ashok Leyland Limited

Ashok Leyland, the flagship of the Hinduja Group, is one of the most important players in India’s commercial vehicle (CV) sector, with a strong presence in both the medium and heavy commercial vehicle (MHCV) and light commercial vehicle (LCV) segments. With a market share of 30.9% in MHCVs and a growing share in LCVs (currently 18.6%, with a target of 20–25% in the medium term), the company is well placed to benefit from India’s expanding economy and rising logistics demand. The upcoming GST 2.0 reforms, which aim to simplify compliance, reduce cascading taxes, and create a seamless “One Nation, One Tax” ecosystem, will further support demand for organized, efficient logistics. This directly benefits CV manufacturers like Ashok Leyland, as higher freight movement translates into higher sales of trucks and buses.

The company’s product pipeline is impressive, with recent launches in LCVs, CNG and electric buses, and new battery-electric trucks. Its Switch Mobility arm gives it an edge in the EV transition, supported by new capacity at Vijayawada (4,800 buses annually) and the planned Greenfield plant in Lucknow focused on alternative fuels. These initiatives align perfectly with India’s push towards green mobility and decarbonization.

Ashok Leyland’s strong order book, innovation in technology (iVAC, new EV models), and expansion into export markets reinforce its long-term growth trajectory. Moreover, government investments in infrastructure, urban mobility, and rural road networks are structural tailwinds. While the CV industry remains cyclical, a SIP approach allows investors to ride through cycles and capture long-term growth.

JSW Steel

On the growth front, JSW Steel is investing heavily in value-added products such as grain-oriented electrical steel (GOES) to meet the rising domestic demand from renewable energy, EVs, data centers, and decarbonization initiatives. The Rs.15,560 crore investment plan to scale GOES manufacturing capacity to 3.5 lakh TPA by FY2028 positions JSW as a leader in high-efficiency electrical steel. Additionally, the proposed 6 MTPA JV with POSCO in Odisha marks a strategic step toward creating a globally competitive hub, combining JSW’s execution expertise with POSCO’s technological edge. The company is also securing raw material security through coal block acquisitions like Rajgamar, which will reduce input cost volatility. With India’s GDP expected to grow ~6.5% in FY26, and government spending on infrastructure and green energy at record levels, steel demand is set to remain robust.

Over the next decade, JSW’s strong domestic presence, diversification into specialty steels, decarbonization-driven capacity expansion, and global partnerships provide significant growth levers. While cyclicality in steel prices and global demand will cause short-term volatility, SIP investors benefit from averaging costs.

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Coforge Limited

Strong revenue visibility, domain specialization, global delivery model, and consistent dividend payouts indicate steady compounding potential. Investors with a long-term horizon can consider SIPs for wealth creation, balancing short-term volatility with structural digital growth trends. During Q1FY26, it has delivered a strong Q1 FY26 performance with sequential revenue growth of 9.6% in dollar terms ($442.4 million) and 8% in constant currency. EBITDA rose 12.1% QoQ to Rs.644.20 crore, with margin expansion to 17.5%, signaling improving operational efficiency. The company’s fundamentals remain strong, supported by robust deal momentum. Order intake stood at $507 million, taking the next twelve-month executable order book to $1.55 billion, up 46.9% YoY, providing clear revenue visibility. Large deal wins across geographies and expansion in key verticals highlight Coforge’s competitive positioning. structurally, Coforge is positioned in high-growth areas such as AI-driven solutions, digital engineering, cloud, data integration, and automation. Its investments in platforms like *Quasar AI Marketplace and AgentSphere* demonstrate foresight to capture opportunities in the AI-led transformation wave. The company’s focus on hyper-specialized domains and differentiated execution capability provide competitive insulation against larger peers.

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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