HSBC has identified two Indian stocks as 'forgotten gems' that offer significant upside potential beyond the current AI-driven market rally. According to CNBC TV18, the brokerage's Asia strategy note titled 'Asia's Forgotten Gems' released on Tuesday, May 19, highlights that the strong rally in AI-linked stocks has made markets increasingly concentrated, with investor attention shifting away from high-quality companies with strong brands and sustainable growth prospects. The note includes Godrej Properties and PB Fintech among its list of 10 under-appreciated stocks in Asia, suggesting these companies are being overlooked despite strong fundamentals.
Godrej Properties benefits from its pan-India presence, deep balance sheet, brand strength and execution capabilities in sourcing and selling large projects, as highlighted by HSBC. The brokerage notes that while concerns around a peak in the residential real estate cycle have weighed on listed developers, demand in the premium housing segment remains resilient. HSBC expects the appetite for premium housing to remain far more resilient and almost delink from near-term macro weakness. The company's aggressive focus on building future projects positions it well for market share gains, with strong deliveries expected to improve profitability, collections and cash flows. HSBC has a price target of ₹2,900 on Godrej Properties, implying an upside potential of close to 70% from current levels, with the stock currently trading at a 14% discount to its June 2026 NAV estimate.
PB Fintech operates India's largest online insurance marketplace, Policybazaar, and remains well positioned to benefit from the low penetration of financial products in India. According to HSBC, the company has a strong first-mover advantage and is scaling 3-4x faster than the broader industry. PB Fintech's strong presence in protection products such as term and health insurance, where it commands over 20% market share, makes it a key distribution channel for the insurance industry. The brokerage notes that concerns around commission changes, acquisition-led expansion and AI disruption appear overdone, with the impact from AI looking limited given insurance distribution is still a push-led model. HSBC has a price target of ₹2,100 on PB Fintech, implying an upside potential of close to 30% from current levels. Shares of PB Fintech were trading over 4% up at ₹1,818.60 as of 11:09 am, with the stock having gained more than 12% in the past month.
Vishnu Kant Upadhyay of Master Capital Services recommends six stocks for the next 1-2 weeks, including IPCA Laboratories with a target price of ₹1,820 and stop loss at ₹1,510, PB Fintech (Policybazaar) targeting ₹1,920 with stop loss at ₹1,630, and Varun Beverages (VBL) aiming for ₹560 with stop loss at ₹473. As reported by Mint, Upadhyay notes that IPCA Labs is witnessing strong bullish continuation after breaking out from a rounding formation with notable volume expansion, while PB Fintech shows strong technical reversal after delivering a decisive breakout above the ₹1,700 consolidation zone. Latest recommendations from Economic Times include PB Fintech at ₹1,749 with 8% upside potential and GE Shipping at ₹1,700 offering 12% upside.
The expert analysis reveals strong technical patterns across all recommended stocks, with RSI indicators ranging from 60 to 80.55 across different timeframes, suggesting positive momentum without entering overbought territory. As reported by Mint, the stocks show various technical patterns including bullish candle formations, breakout structures above key resistance levels, and sustained higher highs and higher lows formations. According to LKP Securities, Nifty is facing resistance near the 61.8% Fibonacci retracement level at 23,650, with a decisive move above this level potentially triggering a short-term rally towards 24,000 and higher. However, sustained elevation in India VIX above 18.50 is likely to keep optimism in check and may continue to induce volatility in the near term. The recommendations come amid cautious market sentiment and geopolitical uncertainties, with experts emphasizing the importance of quality stock selection and sound technical indicators for short-term trading opportunities.
