1 / 7Brokerage firm HSBC has recommended five stocks to buy, namely Infosys Ltd., State Bank of India Ltd. (SBI), Trent Ltd., Godrej Consumer Products Ltd. (GCPL), Phoenix Mills Ltd. for an upside potential of up to 38%. Calling India a “stock picker’s market, instead of one driven by top down macros, HSBC’s Herald Van Der Linde said that they are less worried about Donald Trump’s 50% tariffs on India in comparison to the elevated valuations and weak demand conditions.
2 / 7For the stock picks, Herald Van Der Linde said that the growth in these stocks may not necessarily be as “exciting” as compared to the sector they belong to, but they do reasonably well compared to peers amidst headwinds either due to their strategy, product offerings or other idiosyncratic factors. Here’s a look at these stocks:
3 / 7Trent | HSBC has a price target of ₹6,500 on the Tata Group enterprise, which implies a potential upside of 21% from Thursday’s closing levels. It said that Trent offers a compelling growth story driven by Zudio’s store additions and backed by its best-in-class execution. Even as competition increases, HSBC does not see that denting Zudio’s market leadership. Sustained weakness in underlying consumer sentiment and ramp-up in competition are key risks to their analysis.
4 / 7SBI | Share of India’s largest lender could test levels of ₹950, a potential upside of 18% from Thursday’s close, according to HSBC, who believes that it could maintain a Compounded Annual Growth Rate (CAGR) of 12% for its loans, over financial year 2025-2028, as it grows across segments and outperforms most large peers. SBI’s NIMs would be protected better than larger private banks due to an increase in LDR, lower share of external benchmark linked book, cuts in savings and term deposit rates. HSBC expects stable earnings from SBI and recently upgraded its rating to “buy”.
5 / 7Godrej Consumer | GCPL shares also have a potential upside of 18%, according to HSBC, who has a price target of ₹1,420 on the stock. The firm said that Home Insecticides remains a key driver of the company achieving its targeted volume growth during the current financial year and beyond. It also sees potential over the medium-term in GCPL’s pet care segment, which, according to HSBC, is a nascent but promising foray.
6 / 7Infosys | One of India’s largest IT services provider recently upped the lower end of its full year revenue growth guidance in constant currency terms. HSBC has a target of ₹1,790 on the stock, which implies a potential upside of 25% from Thursday’s close. The firm said that consensus estimates for the current year have moved towards the top-end of the company’s organic growth guidance. “This positions Infosys well for FY27 and likely marks the end of the earnings downgrade cycle,” HSBC wrote. Infosys may see weak growth in FY26 but the next year may see growth from a low base and resilient margins, according to the note.
7 / 7Phoenix Mills | The stock with the highest upside potential among the five HSBC stock picks, is Phoenix Mills, where it has a price target of ₹2,000, implying a potential upside of 38% from current levels. With legacy malls under retrofitting, upgrades and tenant churns, Phoenix’s core portfolio is positioned well towards a stronger and rejuvenated growth trajectory, according to HSBC. “We think the market is sceptical on the company’s ability to lease its new office portfolio. Any positive surprise on this can potentially drive a stock re-rating,” the firm wrote in its note.
