HDFC Bank, AU SFB, M&M, Titan, APSEZ, Power Grid: Top 10 stock ideas by Goldman Sachs

Goldman Sachs in a strategy note said it is 'Marketweight' on India within an emerging market (EM) context, and recommended focusing on quality growth and earnings visibility. The brokerage suggested 10 Indian stocks, which it believes can deliver an average of 23 per cent return going ahead.  They included HDFC Bank Ltd, AU Small Finance Ltd, Mahindra & Mahindra (M&M), InterGlobe Aviation (IndiGo) and Adani Ports & SEZ Ltd (APSEZ).

Power Grid Ltd, Apollo Hospitals Enterprise Ltd, Titan Ltd and Godrej Consumer Products Ltd are four other stocks that it likes. Goldman Sachs also likes MakeMyTrip but it is not listed in India. 

Goldman Sachs said the worst is likely behind us in terms of economic growth and earnings trajectory, and prices have corrected meaningfully. It sees higher market volatility in the near term given still elevated domestic positioning in small and mid-caps and ongoing global uncertainty from tariffs.

"Consequently, they remain 'Marketweight' on India within an EM context, and recommend focusing on quality growth and earnings visibility," Goldman Sachs said citing its strategy team.

HDFC Bank 
The brokerage suggested a target price of Rs 2,090 on HDFC Bank. It said the lender is best placed to benefit from liquidity measures taken by the RBI, which should translate into deposit growth or the system, and the bank given its demonstrated history of gaining deposit market share. The brokerage sees a pick up in loan growth as L-D ratio consolidation is behind the bank It projected a healthy earnings growth of 15 per cent for HDFC Bank compounded annually over FY25-27.

Adani Port & SEZ
Goldman Sachs has a target price of Rs 1,400 on Adani Ports. It expects acceleration in port volumes over FY26-27E, driven by ramp-up at Vizinjham, Gopalpur, and Tanzania and commissioning of the port at Colombo, driving early double-digit volume growth. FY26 growth outlook is better than FY25 and valuations are reasonable, it said on the Adani group stock.  

Titan Company
Goldman Sachs gave a target price of Rs 3,900 on Titan Company Ltd. It is acceleration of Titan's  standalone jewellry EBIT growth to 20 per cent n FY26E compared with an anticipation of 6.2 per cent CAGR over FY23-25. This, it said, would be driven by sustained jewellery revenue growth of over 15 per cent and modest improvement in standalone jewellery EBIT margins to 11 per cent-11.5 per cent.

AU SFB
Goldman Sachs gave a target price of Rs 796 on AU SFB. Calling it a GRAP play, GS said AU may offer a strong 31 per cent CAGR over FY25-27. The foreign brokerage said AU DFB's credit cost is peaking as core profitability remained resilient while MF/credit cards stablise in 2HFY25. The brokerage sees improvement in cost of funds as rate cut cycle materialse.

IndiGo
IndiGo's market share gains are sustainable, given its  healthy newplane deliveries, Goldman Sachs said, as it suggested a target price of Rs 5,050 on the stock. The industry aviation is consolidating towards two large players. IndiGo's cost leadership will likely drive improvement in profitability, GS said adding that international business has a long runaway for growth. 

GCPL
Goldman Sachs sees GCPL at Rs 3,170. It cited improved turnaround in H1 from the new improved formulation and sees sustained high growth in air care/fabric care. The brokerage sees recovery in Ebitda margins as price hikes in soaps plays out.

Mahindra & Mahindra
GS suggested a target of Rs 3,800 on M&M. Supply ramp up of recently launched Battery Electric Vehicle range is starting from Q2 2025. A potential further pickup in farm equipment business momentum is likely in Q2, post strong monsoon in Calendar 2024, GS said.

It sees qualification for PLI scheme incentives on M&M's EV portfolio, potentially during the ongoing calendar. Meanwhile it sees potential value unlocking in unlisted subsidiaries in sunrise sectors including renewable energy and dean mobility. 

Apollo Hospitals
Goldman Sachs sees the stock at Rs 8,025. It estimated an improvement in hospital occupancy by 210 bps in FY26E, driven by increased marketing. Improved occupancy will lead to operating leverage. GS said the company is on track to break-even in the online entity- Apollo 24*7 and said the company's diagnostics segment offers good option value.

Power Grid
Goldman Sachs said Power Grid continued to see a significant capex opportunity in transition-linked grid infrastructure and equipment. As India scales up its hybrid renewable projects, grid expansion must outpace generation capacity to maintain system reliability, reinforcing the structural need for overbuilding the grid. GS has a target of Rs 375 on the stock.