Top 10 Stocks To Invest In During Iran War: As the Iran war rages on, several sectors have been reeling under its impact. The equities sell-off has not even spared fundamentally strong companies. While the markets have been running (mostly) in the green for three consecutive days now, many stocks are yet to shake-off the “red run” that continued for two weeks since the beginning of the fresh conflict in the Middle East on February 28.
For investors with a medium-to-long-term view, this present selective buying opportunities as many quality stocks are now trading below their recent highs. In this report, we have compiled a list of 10 stocks that investors may consider (following due diligence). FOLLOW LIVE UPDATES
The stocks have been selected based on their price-to-earnings (P/E) ratio. The P/E ratio is simply an indicator of how much investors are willing to pay for every rupee of a company’s earnings. So, a high P/E may indicate the stock is expensive, or that investors expect strong growth ahead. Similarly, a low P/E may suggest the stock is undervalued, or that growth expectations are muted.
While there is no fixed “ideal” P/E, a P/E below 30 is often seen as reasonable for companies with stable earnings in the Indian context. This criterion helps narrow down stocks that are not excessively priced, especially during volatile phases.
Here are the 10 stocks with potential upside (P/E below 30)
| Stock | P/E Ratio (Standalone) | P/E Ratio (Consolidated) | Current Price (At 12:30 pm) |
| State Bank of India | 12.47 | 11.59 | Rs 1066.85 |
| Federal Bank | 17.18 | 15.9 | Rs 271.55 |
| Mahindra & Mahindra | 27.96 | 23.72 | Rs 3210.25 |
| Birla Corp | 21.21 | 12.26 | Rs 827.80 |
| JK Lakshmi Cement | 17.73 | 15.86 | Rs 618.00 |
| Five-Star Business Finance | 9.43 | — | Rs 376.55 |
| EPL | 19.83 | 15.41 | Rs 194.95 |
| Newgen Software | 23.44 | 21.94 | Rs 461.70 |
| Petronet LNG | 12.22 | 12.01 | Rs 291.95 |
| Bharat Petroleum | 5.66 | 5.37 | Rs 304.30 |
What Makes These Stocks Stand Out?
Most of these companies belong to sectors like banking, automobiles, cement, energy, and financial services. These are cyclical or core economy sectors that tend to recover once macro conditions stabilise.
Despite recent pressure on stock prices, their earnings base remains relatively steady. That is where the lower P/E becomes relevant. It reflects better valuation comfort without a meaningful hit to earnings.
Experts View
According to Uttam Kumar Srimal, Senior Research Analyst at Axis Securities, the recent market correction is largely sentiment-driven. He said, “The recent correction in Indian equity markets, driven largely by global macro uncertainties such as geopolitical tensions, elevated crude oil prices, and risk-off sentiment from FIIs, has led to a broad-based decline across sectors. Importantly, this correction appears to be sentiment-driven rather than fundamentally driven, thereby creating a constructive entry point for medium to long-term investors.”
He adds that the earnings outlook remains intact: “We continue to expect healthy earnings growth supported by strong domestic demand, improving capacity utilization, government-led capex, and a gradual pickup in private investments.”
Srimal believes the correction has improved valuations: “With valuations moderating from elevated levels, the risk-reward equation has turned favourable.” He suggests a staggered approach: “Investors should utilise corrections to build exposure gradually in high-conviction ideas with strong earnings visibility and sustainable growth prospects.” Among individual stocks (not covered in the list), he pointed to Nestle India, along with Eternal, Varun Beverages, and Max Healthcare as names with potential upside.
According to Shravan Shetty, Managing Director, Primus Partners, these stocks are likely to provide good returns — HDFC Bank, ICICI Bank, L&T, Mazgaon Dock, BHEL, Coforge, Bharti Airtel, and Interglobe Aviation Ltd (IndiGo).
Meanwhile, as per InvestorAi analysis, market positioning is also turning supportive: “With VIX cooling from 22.6 to near 20 and the Nifty clawing back above 23,500 on its third consecutive recovery session, the models are loading into energy downstream, consumption, infrastructure, and rate-sensitive financials – sectors where earnings visibility is high and FII selling has created a valuation reset.”
It added: “The PCR at 0.58 reflects aggressive call positioning, signalling that the options market believes the worst of the correction is behind us.” InvestorAi also flagged Tata Power as a stock to watch, citing tailwinds from rising focus on renewable energy amid elevated crude prices.
Vinay Nagori, Co-Founder, Fintegrity Financial Services, also shared his list of top 10 stocks to look out for — Privi Speciality Chemicals, Kilburn Engineering, Ajmera Realty, Xpro India, Bharat Bijlee, Nazara Technologies, Hindustan Foods, Tips Music, Styrenix Performance Materials, and PVR INOX .
(Disclaimer: No monetary (or any other) benefits were received from any company that has been named in the report. The report presents an estimated view. Financials are always dependent on market risks and several other factors. Your investing decisions should be guided by your risk-assessment and your reading of the market.)
