ICICI Securities Suggests Five Stocks with Potential for Long-Term Growth, Including Tata Steel and EIL

Market Sentiment Remains Cautious Amid Uncertainty Over US-Iran Peace Deal

The domestic stock market witnessed a sharp and sudden drop in the final hour of trade on Friday, 29 May, which dragged the benchmarks, the Sensex and the Nifty 50, down by over 1% each. Market sentiment remains cautious amid persistent uncertainty over the final contours of a potential US-Iran peace deal. While US President Donald Trump is expected to decide on a proposal to extend the ceasefire with Iran, media reports suggest that the two countries have yet to reach common ground on key issues, including the reopening of the Strait of Hormuz and Tehran's nuclear programme.

Experts say investors should avoid predicting the course of the market and focus on stock-specific opportunities. Pankaj Pandey, the head of research at ICICI Securities, recommends the following five stocks for the next one-two years.

Stock Picks for Long Term

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Artemis Medicare Services is a healthcare venture launched by the promoters of the Apollo Tyres Group, commanding an industry-leading ARPOB of ₹82,435 per day. It derives nearly 32% revenues from international patients. The company is planning to almost triple the bed capacity from current levels of 700 beds to nearly 2,000+ beds in the next 3-4 years by brownfield expansion and O&M agreements.

VA Tech Wabag’s order backlog stood at a robust ₹17,235 crore at the end of FY26, growing 26% YoY and implying revenue visibility of more than 4 times FY26 revenue, significantly higher than the company’s internal threshold of maintaining order book at nearly 3 times annual revenue.

Tata Steel, one of India’s largest steel producers, delivered a healthy Q4FY26 performance with EBITDA gains of nearly ₹2,500 per tonne, supported by higher domestic steel prices. The company has guided for realisation improvement of nearly ₹6,000 per tonne in Q1FY27, likely to drive EBITDA gains of nearly ₹3,500 per tonne, the highest among domestic peers.

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Mahindra & Mahindra (M&M) is a conglomerate with presence in auto, IT, financial services, etc., among others. It is India’s largest tractor manufacturer (43.6% FY26 market share) and second largest CV, second largest PV maker (28.2%, 14.2% FY26 market share).

Engineers India (EIL) ended FY26 with a record order book of nearly ₹15,109 crore (+29% YoY) led by strong consultancy inflows (nearly ₹6,010 crore) and large international wins, providing healthy execution visibility over the next 3-5 years.