As January 2026 begins, investors are actively seeking stocks that offer solid return potential over the coming year. Leading brokerages and market analysts have identified select companies that may generate 20–40% upside, driven by stronger earnings visibility and better execution. These opportunities span key sectors such as financials, engineering, infrastructure, and retail.
Here in this blog, we will provide you with a snapshot of the best stocks to buy in January supported by credible market sources.
List of Best Stocks to buy in January 2026
- Shriram Finance
- Engineers India
- KEC International
- V- Mart Retail
- VA Tech Wabag
- Canara Bank
- Nykaa Fashion
Expected Returns from these Top Stocks
| Stock | Approx. Current Price | Analyst Target / Forecast | Implied Upside (Analyst) |
| Shriram Finance | ₹979 | Target ₹1,180 | ~20% (Motilal Oswal, ET) |
| VA Tech Wabag | ₹1,270 | Target ₹1,900 | ~49% (Motilal Oswal, ET) |
| V‑Mart Retail | ₹713 | Target ₹1,040 | ~45% (Motilal Oswal, ET) |
| Engineers India | ₹199 | Target ₹255 | ~28% (Prabhudas Lilladher, ET) |
| KEC International | ₹732 | Target ₹932 | ~27% (Prabhudas Lilladher, ET) |
| Canara Bank | ₹153–₹155 | Target ₹175 | ~13% (Bajaj Broking, Whalesbook) |
| Nykaa (FSN E‑Commerce) | ₹260–₹265 | Target ₹292 | ~11% (Bajaj Broking, Whalesbook) |
History and Overview of the Top Stocks
1. Shriram Finance
- Founded in 1979, Shriram Finance began as a commercial vehicle financier under the name Shriram Transport Finance Company.
- Over time, it expanded into multiple retail lending segments, including passenger vehicles, two-wheelers, MSME loans, gold loans, and personal finance.
- In November 2022, the merger of Shriram Transport Finance, Shriram City Union Finance, and Shriram Capital created Shriram Finance Ltd, India’s largest retail-focused NBFC.
- The company serves a diverse customer base, with a strong presence in semi-urban and rural India, emphasizing financial inclusion.
- Shriram Finance operates an extensive nationwide branch network and offers both lending and deposit products.
- Today, it stands as a diversified NBFC with a large AUM, backed by scale, stable asset quality, and consistent growth across cycles.
2. Engineers India
- Engineers India Limited is a Navratna PSU and a leading engineering consultancy and EPC company, headquartered in New Delhi.
- Founded in 1965 to provide engineering consultancy and project execution services for India’s hydrocarbon sector.
- Began with a focus on refinery and petrochemical projects, later diversifying into infrastructure and energy-related sectors.
- Instrumental in developing key national assets, including major refineries and pipeline systems.
- Listed on the BSE and NSE and accorded Navratna status, granting greater operational autonomy.
- Increasingly focused on green and sustainable technologies, including biofuels and hydrogen.
- Plays a strategic role in national energy and infrastructure programmes while expanding globally.
3. KEC International
- KEC International is a leading EPC player, headquartered in Mumbai, with operations across multiple countries.
- Established in 1945, KEC International began as a power transmission engineering company, making it one of the earliest players in the sector.
- Gained early prominence through participation in large national infrastructure projects.
- Became part of the RPG Group, which strengthened its scale, governance, and global expansion.
- Evolved into a diversified EPC infrastructure company with a strong international presence.
- Major Businesses are power transmission & distribution, railways, civil infrastructure, renewables, oil & gas pipelines, and cables.
- Provides end-to-end project execution, from engineering to commissioning.
- Known for executing complex projects across diverse geographies.
- Continues to expand through order inflows and sector diversification.
4. V – Mart Retail
- V-Mart is a value-oriented retail chain offering apparel, footwear, accessories, home essentials, general merchandise, and kirana products.
- Established in July 2002 by Lalit Agarwal as Varin Commercial, the company was later rebranded as V-Mart Retail Ltd.
- Launched its first store in Ahmedabad in 2003 and expanded rapidly across smaller cities and towns.
- Transitioned into a public limited company by 2008, followed by steady nationwide expansion.
- Headquartered in Delhi/Gurugram, it operates 450+ stores across 270+ cities in 25 states.
- Known for affordable fashion and a wide product mix under one roof, catering to aspirational middle-class customers.
- Continues to expand its store network while strengthening its omni-channel presence in emerging markets.
5. VA Tech Wabag
- VA Tech Wabag is a Chennai-based water technology company focused on municipal and industrial water, wastewater treatment, desalination, and reuse.
- Became part of VA Tech in 1999, forming VA Tech Wabag as a water-focused entity.
- Operates across EPC, O&M, DBO, and BOOT project models.
- Has delivered 6,500+ projects globally across multiple continents.
- Holds a strong position in desalination and water recycling.
- Continues to grow through large-scale infrastructure projects and a focus on sustainable water management solutions.
- Listed on NSE and BSE in 2010, marking its evolution as a global water solutions player.
6. Canara Bank
- Canara Bank is a leading public sector bank offering comprehensive retail, corporate, agricultural, and international banking services.
- Established on 1 July 1906 in Mangalore by Ammembal Subba Rao Pai, with a strong focus on community banking.
- Headquartered in Bengaluru, it operates a nationwide network of branches and ATMs.
- Nationalised in 1969, it became an integral part of India’s public sector banking framework.
- Offers a broad range of products, including deposits, loans, cards, digital banking, trade finance, and treasury services.
- Plays a key role in financial inclusion, priority sector lending, and rural development initiatives.
- Continues to strengthen its position through digital transformation and service expansion.
- Strengthened its scale through the merger with Syndicate Bank in April 2020.
7. Nykaa Fashion
- Nykaa Fashion is a multi-brand fashion and lifestyle e-commerce platform serving women, men, kids, tech, and home categories.
- Nykaa was established in 2012 by former investment banker Falguni Nayar as a digital-first beauty retail platform.
- Leveraging Nykaa’s success, Nykaa Fashion was launched in 2018 as a curated fashion and lifestyle marketplace.
- The platform scaled quickly online and entered offline retail in 2020 with its first physical store.
- It offers a wide product range spanning apparel, footwear, accessories, bags, jewellery, and related segments from domestic, global, luxury, and emerging brands.
- The platform emphasises trend-led curation and a discovery-focused shopping experience.
- It has emerged as one of India’s fast-growing fashion marketplaces, hosting thousands of brands and millions of SKUs.
FAQs
Q1. What does the 3‑5‑7 rule mean in stock trading?
Ans. The 3-5-7 rule is a risk management strategy for traders: risk a maximum of 3% of your capital on a single trade, keep total exposure across all open trades under 5%, and aim for at least a 7% profit on successful trades.
Q2. Which are the top 3 AI stocks to invest in currently?
Ans. Nvidia (NVDA), Broadcom (AVGO), and Taiwan Semiconductor Manufacturing (TSM) are considered the leading AI stocks to buy now and hold into 2026.
