Top stocks to buy today: Shrikant Chouhan picks Emcure Pharma, ICICI Bank

Shrikant Chouhan, Head of Equity Research at Kotak Securities, has recommended buying shares of Emcure Pharmaceuticals and ICICI Bank today

Top Stock Picks Today by Kotak Securities’ Shrikant Chouhan: 

Emcure Pharmaceuticals Ltd – BUY   

CMP: ₹1,434

Fair value: ₹1,710

Support: ₹1,350-₹1,250

Resistance: ₹1,550-₹1,660

Having commenced operations in 1981, Emcure is currently one of the leading Indian pharma companies engaged in developing, manufacturing, and globally marketing a broad range of drugs across several major therapeutic areas with a leading presence in the Indian gynaecology market. As of FY2024, Emcure was ranked the 15th largest pharma company in India. 

 

Helmed by a mix of promoters and professionals, Emcure is an R&D-driven company with a differentiated product portfolio that includes orals, injectables and biotherapeutics. Owing to a 40 per cent complex mix, Emcure has established a strong presence across over 70 countries, primarily in India, Europe and Canada. We expect Emcure’s domestic formulations mix to increase from 48 per cent in FY2024 to 50 per cent in FY2027.

 

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Building on the clear improvement seen in Q4FY25, Emcure delivered a fine Q1FY26, backed by strength in exports. Adjusted for Orofer-FCM, domestic growth was healthy as well at 10.5 per cent Y-o-Y. Emcure continues to guide for the momentum to continue and has maintained its FY2026E guidance on growth and margins. We bake in an organic domestic sales CAGR of ~10 per cent over FY2025-28. On a low base, we expect improved productivity and higher capacity utilisation of the new facilities to drive robust 16 per cent/23 per cent Ebitda/EPS CAGRs over FY2025-28.

 

Amid the US tariff overhang, Emcure remains one of the few major Indian pharma players with no meaningful direct US generics exposure, thereby lending greater earnings stability. We tweak Emcure’s FY2026-28 EPS by 1-3 per cent as we factor in the Zuventus deal and acquisition of Sanofi’s oral anti-diabetic portfolio. Roll forward to September 2027 and derive an FV of ₹1,710 (₹1,625 earlier). Retain BUY.

ICICI Bank Ltd – BUY   

CMP: ₹1,364

Fair value: ₹1,700

Support: ₹1,330-₹1,280

Resistance: ₹1,400-₹1,440

ICICI Bank is India's second-largest private sector bank with a strong retail-driven balance sheet, diversified business mix, and best-in-class execution. As of FY2025, lending operations contribute about 90 per cent of consolidated profits, supported by subsidiaries in insurance, asset management, and capital markets that enhance overall profitability and capital efficiency.

 

The domestic loan portfolio forms nearly 95 per cent of total loans, with retail loans contributing over half and showing faster growth than corporate loans. Within retail, home loans, unsecured personal loans, and credit cards remain key drivers, while SME and business banking have witnessed double-digit expansion. Corporate lending is largely investment-grade, with over 90 per cent of exposure rated A and above, reflecting strong credit quality. The bank’s liability franchise is robust, with CASA deposits forming a high share and term deposits growing faster than the sector average, supporting a low cost of funds.

 

For FY2025, ICICI reported a RoE of 18 per cent and RoA of 2 per cent, among the highest in the Indian banking sector. NIM moderated by 20 bps to 4.3 per cent due to deposit repricing and slower unsecured loan growth, but remains well above peers. Net loan growth stood at 16 per cent Y-o-Y, outpacing the industry average of 10 per cent. The GNPA ratio remains contained, with high provisioning coverage and limited stress in the unsecured book.

 

ICICI’s balance sheet strength, granular retail growth, and disciplined risk management underpin steady earnings compounding. Near-term NIM pressures may persist, but long-term fundamentals remain intact, supported by superior execution, technology leadership, and stable asset quality.

 

ICICI Bank remains a high-conviction private banking play, offering sustainable growth, industry-leading return ratios, and consistent profitability. It stands well-positioned to deliver steady earnings compounding over the medium term.