Stocks to buy: Highlighting the solid resilience of the Indian stock market over the last few months, despite geopolitical tensions and tariff war, domestic brokerage firm PL Capital (Prabhudas Lilladher) has revised upwards the 12-month target of Nifty 50 to 26,889 from 25,521 earlier.

However, the brokerage firm highlighted the hazy outlook of earnings growth and so, has trimmed its Nifty EPS (earnings per share) estimates.

“FY27 Nifty EPS was introduced in October, and there has been a cut of 7.3 per cent and 6.15 per cent in PL Nifty EPS for FY26 and FY27. Consensus EPS cuts have been steeper at 8.9 per cent and 7.5 per cent, respectively. Nifty during the same period has moved up by just 0.8 per cent,” said PL Capital.

“Nifty EEPS has seen a change of -1.5/-0.6 per cent for FY26/27 with 13.4 per cent CAGR over FY25-27 and EPS of ₹1,271/1,451. Our EPS estimates are lower than the consensus by 1.7/2.9 per cent for FY26/27. Nifty is currently trading at 19 times one-year forward EPS, which is at par with the 15-year average and is at a discount of 5.4 per cent to the 10-year average PE of 20.1 times,” the brokerage firm observed.

Nifty’s target

PL Capital values Nifty at a 2.5 per cent discount to the 15-year average PE at 18.5 times, with March 2027 EPS of 1,451.5, arriving at a 12-month target of 26,889 from 25,521 earlier.

However, in a bull case, the brokerage firm values the index at a PE of 20 times and arrives at a bull case target of 28,957 from 27,590 earlier.

In a bear case, PL Capital said Nifty can trade at a 10 per cent discount to LPA with a target of 24,821 from 24,831 earlier.

(This is a developing story. Please check back for fresh updates.)

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.