Hindocha's Top India Picks: REC and Oberoi Realty

Nuvama's Aakash K. Hindocha names REC Limited and Oberoi Realty as his top India stock picks, citing record earnings, structural demand tailwinds, and compelling valuations in the power finance and premium real estate sectors.

Lead

Aakash K. Hindocha, Deputy Vice President of Wealth Management Research at Nuvama Professional Clients Group, has flagged REC Limited (NSE: RECLTD) and Oberoi Realty (NSE: OBEROIRLTY) as his foremost India stock picks for the current investment cycle. The calls come as both companies report record-breaking financial results, and as institutional focus sharpens on India's twin structural drivers — energy transition infrastructure and urban premium housing. Among the best stocks today for investors seeking domestic growth exposure, Hindocha's pairing spans the public financing and private luxury property segments, underscoring the breadth of India's current expansion phase.

REC Limited: Power Finance at Record Scale

The loan book expanded to ₹5.84 lakh crore as of March 31, 2026, an all-time peak, anchored by robust disbursements across conventional power, renewable energy, and non-power infrastructure. The renewable energy segment was particularly notable: the renewable loan book grew 30% year-on-year to ₹75,347 crore, as India accelerates capital deployment toward its 2030 clean energy targets. REC has set an internal goal of ₹3 lakh crore in outstanding renewable loans by 2030.

Asset quality remains a standout feature of the REC investment case. Net Stage-3 loans — equivalent to net non-performing assets — held at just 0.12%, effectively zero, while Stage-2 exposures were cut by 75% year-on-year. The company's Maharatna status was reaffirmed by the Department of Public Enterprises following a review in January 2026, cementing its strategic importance within India's public sector financial architecture.

REC shares traded at ₹368.35 on July 2, 2026, within a 52-week range of ₹304.05 to ₹408.25, giving the company a market capitalisation of approximately ₹97,324 crore. The stock's trailing price-to-earnings ratio stands at 5.99, a level widely regarded as inexpensive relative to peers in the infrastructure finance space. Monthly returns have rebounded sharply, with a gain of 11.67% over the past month reversing part of a 7.57% decline over the prior 12-month period.

The analyst community is broadly constructive. Consensus across 13 to 14 analysts tracked by major aggregators reflects a Strong Buy rating, with 12-month price targets in the ₹440 to ₹520 range, implying upside of 20% to 41% from current levels. The REC stock buy thesis rests on a combination of earnings momentum, sub-1% NPAs, renewable portfolio optionality, and its status as a primary conduit for India's grid expansion financing.

Oberoi Realty: Luxury Residential Firing on All Cylinders

The Q4 FY26 quarter was especially emphatic. Revenue surged 52.14% year-on-year to ₹1,749.83 crore, and net profit jumped 62.35% to ₹703.28 crore, illustrating the acceleration in project deliveries and collections that characterised the second half of the fiscal year. Residential bookings for FY26 totalled ₹5,447 crore, up 3.14% from the prior year, with demand concentrated in Oberoi's high-ticket Mumbai micro-markets.

The company's commercial portfolio also continues to perform. International Business Park, its commercial office asset, reported occupancy of approximately 91%, reflecting resilient demand for Grade-A space in the Mumbai market. The hospitality segment — comprising The Westin Mumbai Garden City and Oberoi Mall — contributed ₹197.98 crore to FY26 consolidated revenue, providing incremental diversification.

OBEROIRLTY shares were quoted at approximately ₹1,774 in late June 2026, against a 52-week range of ₹1,391.2 to ₹2,005. Market capitalisation stands at ₹63,601 crore. The trailing price-to-earnings ratio of 32.32 reflects a growth premium, though consensus price targets of ₹1,795 to ₹2,200 — compiled from 25 analysts, of whom 15 carry Buy ratings — suggest meaningful valuation headroom remains.

Strategic Context: Why These Two, Why Now

Hindocha's pairing of REC and Oberoi Realty as top India stock picks reflects a deliberate thematic framing. Both companies occupy leadership positions in sectors underpinned by structural, multi-year demand: energy infrastructure investment driven by India's power capacity buildout, and premium urban housing driven by rising household wealth concentration and a chronic shortage of quality supply in gateway cities.

Both also share a financial quality profile that has become harder to find across Indian equities — record earnings, improving or pristine asset quality, and management teams with consistent capital allocation track records. At the macro level, India's nominal GDP growth trajectory, a still-accommodative rate environment relative to recent peaks, and sustained government capex on infrastructure provide a supportive backdrop for both franchises.

Among the best stocks today in the Indian mid-to-large-cap universe, sector specialists point to a bifurcation between companies with genuine earnings visibility and those riding cyclical tailwinds. Both REC and Oberoi Realty sit firmly in the former camp.

Outlook

REC Limited and Oberoi Realty enter the second half of 2026 with strong earnings bases, robust balance sheets, and identifiable growth catalysts — respectively, India's energy transition capex cycle and the continued deepening of Mumbai's luxury residential market. Consensus analyst opinion is constructive on both, and Hindocha's endorsement reinforces the case for selective positioning in India's infrastructure financing and premium real estate verticals. Near-term share price performance will hinge on broader market direction, monsoon-linked sentiment in domestic equities, and any shifts in the Reserve Bank of India's policy stance.