High Conviction Stocks July 2026: KSL Research Adds 10 Fresh Stock Picks Including Axis Bank, Cipla, M&M

The July edition of KSL Research's High Conviction Ideas basket brings together 10 companies that the research team believes are well placed to deliver sustainable earnings growth over the medium term. The recommendations span banking, pharmaceuticals, automobiles and internet-led consumer businesses, reflecting a preference for companies with improving fundamentals and reasonable valuations.

The updated basket comes after a volatile June for equity markets. The Nifty gained 1.4% during the month, but sentiment remained fragile as global equities initially rallied on easing geopolitical tensions and softer crude oil prices before a technology-led sell-off weighed on markets. In India, equities traded in a narrow range amid weakness in global AI-linked stocks, an uneven monsoon and mixed macroeconomic indicators. Mid-cap stocks ended the month nearly flat, while small-caps outperformed with a 4% gain.

Against this backdrop, KSL Research said diversified portfolio positioning remains important in the current market environment as it helps mitigate risk while allowing investors to participate across emerging opportunities.

Stocks in KSL Research's July High Conviction basket

The July 2026 basket includes four BUY-rated stocks and six ADD-rated ideas spanning financials, healthcare, automobiles, consumer and technology businesses

• Axis Bank (BUY): India's third-largest private bank is the biggest name in the basket by market cap, at Rs 4,18,600 crore. The call rests on credit costs normalising, healthy asset quality, and gaining loan growth momentum. RoE is expected to improve to 13.9% in FY28E, and the stock trades at 1.6x FY28E book.

• Mahindra & Mahindra (BUY): KSL Research expects M&M to keep outperforming industry growth in tractors and commercial vehicles, with a product-launch cycle through CY30E seen sustaining its SUV leadership. EPS is projected to rise from Rs 143.1 to Rs 159.3 between FY27E and FY28E.

• Torrent Pharmaceuticals (ADD): The thesis is built on an expected 18% EBITDA CAGR for the merged entity over FY26-29E, helped by a solid Q4FY26 and guidance for mid-teens organic India growth in FY27E, even as the company works through course-correction in its JB business.

• Bank of Baroda (ADD): Preferred among PSU banks for healthy loan growth, improving asset quality, and a strong capital position. The stock trades at roughly 1x FY28E book, which the report calls a fair valuation, with RoE seen at 11.1% in FY28E.

• Cipla (BUY): KSL Research believes earnings have bottomed out, with a strong FY27E recovery expected on the back of a robust US launch pipeline, improving India momentum, and cost efficiencies. EPS is forecast to climb from Rs 52.7 to Rs 62.4 over FY27E-28E.

• United Spirits (ADD): Revenue growth is expected to improve in FY27E, with cost efficiencies and premiumisation offsetting inflation. Triggers flagged include a policy unlock in Karnataka, the UK FTA coming into effect, continued Smirnoff momentum, and a possible LP portfolio revival post-relaunch.

• Lenskart Solutions (ADD): India's leading omnichannel eyewear retailer added a net 604 stores in India in FY2026, taking its count to 2,609, plus 718 international stores. With an estimated 5% share of the domestic eyewear market, KSL Research expects further market share gains.

• FSN E-commerce Ventures (ADD): The Nykaa parent's growth case is built on premiumisation, AI-led personalisation, faster deliveries, and category expansion, with improving operating leverage expected to support profitability as its beauty, fashion, and owned-brand businesses scale. RoE is projected to jump to 38.9% in FY28E.

• Aptus Value Housing Finance (BUY): The high-margin housing financier, which targets self-employed, low-to-middle-income borrowers across South and Western India, already runs a 7.9% RoA and 20.1% RoE on an AUM base of Rs 13,107 crore. Loan growth is expected to stabilise near 20% with resilient asset quality.

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• Amagi Media Labs (ADD): The cloud-native SaaS company serving media and advertising clients is expected to post an 18.3% USD revenue CAGR over FY26-29E, with adjusted EBITDA margin expansion seen driving a six-fold jump in PAT from FY26's modest base.

According to the report, the High Conviction Ideas basket will continue to be monitored through the month and may be rebalanced if fresh opportunities emerge or material developments affect the investment outlook.

Under KSL Research's rating framework, BUY indicates an expected return of more than 15% over the next 12 months, while ADD indicates an expected return of 5-15%