India’s long-term investment story is entering a new phase.
As global uncertainty lingers—from tariff risks to war concerns—investors are beginning to favour businesses rooted in the domestic economy.
This shift is less about reacting to global headlines and more about following the deeper undercurrents reshaping India’s growth trajectory.
What’s fuelling this trend?
Formalisation across industries, a booming real estate cycle and a consumption engine that’s now spreading beyond metros into tier 2 and 3 cities…
Add to that a policy environment that’s increasingly supportive of logistics, manufacturing, and clean energy, and the stage is set for long-duration winners.
But not all stocks have participated in this rally. In fact, some fundamentally sound businesses have seen steep corrections over the last year.
This is where opportunity lies.
So, with this in mind, we highlight 5 bargain stocks ready for the next bull run.
#1 IRCON International
At the top of the list, we have IRCON International.
With 90% of its revenue coming from railway projects, IRCON is the Indian Railways’ favourite contractor.
The company takes up projects across highways, MRTS and EHV substations. However, its railway orders are the bread and butter of the business.
Between 2019-2024, the sales and net profit have reported a 5-year CAGR of 20% and 15.4%, respectively. The company’s 5-year average Return on Equity (RoE) and Return on Capital Employed (RoCE) stand at 13.3% and 18.7%, respectively.
Yet, the stock is down 57% from its 52-week high and trading at a price to earnings (PE) ratio of 18.4.
As of March 2024, the company’s order book stood at Rs 300 bn. This offers revenue visibility over the next four to five years.
Ircon is well-positioned as a key execution partner for large-scale rail infrastructure projects, as 92% of these orders are from the Ministry of Railways.
Apart from this, the government’s push to electrify 100% of its broad-gauge railway network by 2030, could open up further opportunities for Ircon.
It’s also diversifying internationally. This could trigger long-term growth and de-risk its order book as the company is pursuing projects in neighboring countries like Bangladesh, Nepal, and Sri Lanka.
The company’s balance sheet remains debt-free and it follows a subcontracting model, which keeps capex low and returns steady.
#2 Cello World
Next on our list is Cello World.
Cello World is a leading consumer houseware brand with a diverse portfolio across plastic, glassware, and writing instruments.
Between FY21-24, the company’s sales and net profit have grown at a CAGR of 24.4% and 29.6%, respectively. Over the same period, average RoE and RoCE stood at 45% and 74%, respectively.
Despite strong fundamentals, the stock is down 49% from its 52-week high, due to higher input and marketing costs, slower-than-expected volume growth and muted performance in key segments.
Currently, it’s trading at a PE ratio of 33 well below its 5-year median valuation of 55.
Cello re-entered the writing instruments segment in 2019 under the ‘Unomax’ brand and managed to scale it quickly.
Looking ahead, the company is expanding distribution and plans to increase its retail reach from 1.2 lakh outlets in FY24 to 2 lakh by FY26.
It is also adding new products within the category and focusing on premium offerings. Although exports were slow in the first half of FY25 due to logistics-related challenges, the company expects a recovery in the second half.
Cello plans to reduce geographic concentration by entering newer export markets while strengthening its position in existing ones.
Beyond writing instruments, the company has entered the glassware business, with a plant in Rajasthan starting operations in February 2025. The management expects this facility to break even in its first year, with a full ramp-up by FY27.
Cello is targeting overall revenue growth of 12–14% in FY26. Near-term profitability may be weighed down by higher marketing spends and the scale-up of new businesses, but the core operations continue to be stable.
#3 Amara Raja Energy & Mobility
Third on our list is Amara Raja Energy & Mobility.
Amara Raja Batteries is India’s second-largest lead-acid battery maker. It enjoys a strong visibility in automotive and industrial segments through its Amaron brand and a wide distribution network.
Between 2020 and 2024, the company’s sales and net profit have reported a CAGR of 11.4% and 14.6%, respectively. The average RoE and RoCE stand at 15.5% and 20.3%, respectively.
However, amid near-term pressure on margins and cautious demand trends in the telecom and industrial battery segments, the stock has shed more than 45% off its 52-week high and is close to its 5-year median PE of 17.4.
Looking ahead, Amara Raja is looking to future-proof its business. It’s building a lithium-ion cell giga factory in Telangana through its wholly-owned subsidiary.
Phase 1 of the project involves setting up a 2 GWh cell and 1 GWh battery pack facility, expected to go live by FY26. Over the next 10 years, the company plans to invest Rs 95 bn in its new energy business.
The group’ aims to diversify into energy storage systems, EV batteries and electronics solutions. It also plans to manufacture battery management systems and thermal management components.
Over time, the company expects 25–30% of its revenue to come from these new energy verticals.
With steady cash flows from its core business and a clear roadmap for scaling up in lithium-ion technology, Amara Raja offers an interesting bargain for investors looking to bet on the energy transition.
#4 Godrej Properties
Fourth on the list is Godrej Properties.
Godrej Properties is the real estate arm of the 125-year-old Godrej Group. The company caters to key regions like Mumbai, Pune, NCR and Bengaluru.
Between 2020-2024, the sales and net profit have reported a CAGR of 6.4% and 24.6%, respectively. The company’s average RoE and RoCE stand at 4.6% and 5.7%, respectively.
The stock is down about 41% from its 52-week high, weighed down by rich valuations and market-wide caution toward real estate stocks.
FY24 was a landmark year for the real estate major. Bookings surged 84% year-on-year to Rs 225 billion—its highest ever. The company launched 16 new projects and added 21 million sq. ft. to its development pipeline.
For FY25, Godrej Properties is aiming for Rs 270 bn in booking value, a 20% growth over FY24 after realising 198 bn in bookings for 9MFY25.
Going forward, the management has outlined plan for around Rs 500 bn in annual bookings by FY30. To achieve this, it plans to launch over 20 million sq. ft. every year and has already begun adding projects across MMR, Pune, NCR, and Bengaluru for the same.
Meanwhile, the company continues to follow an asset-light model, focusing on joint development agreements over outright land buys. This keeps debt under control while helping scale up rapidly in key markets.
#5 Blue Dart Express
Last on the list is Blue Dart Express.
Blue Dart Express, a key logistics player in the country, enjoys a strong presence in the express air and ground parcel delivery business. The company caters to over 55,000 locations across India, with a strong presence in metros, tier 1, tier 2, and now tier 3 cities.
Between 2020-2024, the sales and net profit have reported a CAGR of 10.7% and 27.4%, respectively. The company’s average RoE and RoCE stand at 24.6% and 31.9%, respectively.
The stock is trading nearly 36% below its 52-week high and is close to its 5-year median PE of 51. This correction is a result of weak volumes and margin pressure seen in recent quarters.
Blue Dard Express Financial Snapshot (2020-24)
To address these challenges, Blue Dart is sharpening its focus on yield management, expanding into underserved markets and optimising its network for better cost control.
The management expects volumes to recover, with the help of improving B2B demand and the long e-commerce tailwind.
After growing its revenue at 9% YoY in 9MFY25, the company is targeting mid-to-high single-digit revenue growth and plans to sustain EBITDA margins despite ongoing cost pressures in FY25.
Moving forward, Blue Dart plans to double its existing capacity by FY27. It has inducted six Boeing 737 freighters and aims to carry 2.5 its current cargo load.
Conclusion
After months of froth, valuations across some quality stocks are finally looking reasonable.
It’s not a deep-discount sale, but for the first time in a while, investors have a chance to build positions in fundamentally strong companies without having to hold their nose on price.
The five companies we’ve picked aren’t just cheap—they’re building for the future.
Investors should stay aligned with their own risk appetite and investment horizon while picking potential winners.
Happy investing.
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