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Stocks to Buy: As optimism sweeps through Dalal Street with the Nifty 50 moving past the 26,000 mark in early trade on Thursday, investors are looking for fresh ideas to keep pace with the rally. Hem Securities’ analyst Aastha Jain has picked three stocks that she believes can deliver healthy returns over the short and long term — City Union Bank, Inox Wind, and Zensar Technologies.

According to Jain, all three companies are backed by improving earnings visibility and sectoral strength, making them suitable buys in the current momentum-driven market.

City Union Bank has been one of the steady performers in the mid-tier banking space. The stock, which recently touched a 52-week high of Rs 235, is currently hovering near Rs 230 levels. Jain expects it to head towards Rs 260–270 in the coming months.

The bank’s loan book expanded by 16 per cent in the first quarter while deposits grew by 20 per cent. Its asset quality remains under control with a gross NPA of 2.99 per cent and net NPA of 1.20 per cent, while net interest margin stands at 3.54 per cent. With steady growth in advances and a stable margin profile, Jain believes the stock offers further upside potential. Over the last month, it has gained nearly 12 per cent.

Shares of Inox Wind were trading close to Rs 153, up around 2.5 per cent, after showing strength through the week. Jain has pegged a target of Rs 180, citing improving fundamentals.

The renewable energy player reported its highest-ever quarterly profit in Q1, supported by 3.1 GW order book. The company has been working on backward integration, which should help improve margins over the medium term. The successful rights issue earlier this year and a pickup in the wind energy segment are expected to support future earnings.

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Jain’s third pick, Zensar Technologies, gained around 3.5 per cent to trade near Rs 805. The brokerage has set a target price of Rs 855. The counter’s 52-week range stands between Rs 985 on the higher side and Rs 558 at the lower end.

Although the company’s first-quarter results were soft, its growing focus on artificial intelligence and automation-driven services could help it regain traction. The management of the company has kept the EBIT margin guidance same indicating confidence in the business outlook.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff