United Breweries, ITC and Asian Paints are the top stock picks to deliver the best returns over a one-year perspective, according to Abneesh Roy, Executive Director at Nuvama Institutional Equities. The brokerage has upgraded ITC from a hold to a buy rating, anticipating a favourable tax environment ahead of the Union Budget.
The Union government is expected to maintain a zero probability of tax hikes on February 1, following severe carnage in the legal cigarette industry. Historically, significant tax increases are followed by two years of moderate or no taxation hikes. "Ex of cigarette, all the 3 businesses have done reasonably well, especially FMCG and the paper business," Roy noted.

ITC's cigarette division's 7-8% volume decline and 27% profit decline aligned with estimates, and profitability is projected to turn neutral by the January-March quarter of 2027 before hitting a soft base. Roy said investors could make good money in the stock over a six-to-12-month period, with the company's digital-first brands like Yoga Bar achieving an annual run rate of ₹1,800 crore.
The stock is currently trading at 16 to 17 times one-year forward earnings. Marico remains an evergreen company that is actively diversifying. The fast-moving consumer goods player has upgraded guidance across four metrics and corrected 10 to 12% from its top.

It currently trades at 45 times 2026-27 and 37 times 2027-28 earnings. Future growth triggers for Marico include the shampoo portfolio reaching a ₹100 crore annual run rate in FY27, alongside the almond hair oil segment hitting a ₹100 crore run rate in FY28.
As a high-growth company, the price-to-earnings growth multiple must be considered, making it one of the best-run companies in the staples sector. In the retail space, Trent and Restaurant Brands Asia are the preferred picks. Trent has moved past a tough cycle characterised by low same-store sales growth and margin dips.

With green shoots visible in the July-September quarter of 2026 , the apparel retailer is positioned to outperform peers in the second half of the year, maintaining a 20-25% compound annual growth rate . Although the PEG multiple is not favourable, the stock's significant fall provides comfort as growth metrics improve.
Within the multinational alcoholic beverage segment, United Breweries stands out as the top pick over United Spirits. While United Spirits offers a one-time 10% dividend yield from an Indian Premier League team sale, United Breweries is projected to grow much faster over the next two to three quarters.

Volumes are surging 40 to 50% in Karnataka and Jharkhand, alongside 20% plus growth in Maharashtra. Radico Khaitan is also favoured due to rapid growth in vodka and white spirits. While Nestle India has performed far better as a company and a stock, Hindustan Unilever offers high valuation comfort and is gaining market share, with further price hikes planned for the October-December quarter of 2026 .
High visibility exists for a 67% volume growth trajectory and double-digit sales growth over the next two to three quarters. However, a rerating hinge on achieving double-digit earnings before interest, taxes, depreciation and amortisation growth—a metric the company missed recently, unlike Marico, which delivered 25% EBITDA growth and saw its stock perform well.

Watch the full conversation hereFor a 6-12-month horizon, Asian Paints and Pidilite Industries are positioned to benefit from third-quarter price hikes, full festival demand, and a 7-8% correction in crude oil prices over the past two days. Both companies are reclaiming market share and dealer networks lost during recent inflationary periods, with Pidilite specifically gaining ground due to hyperinflation.
Topline and volume growth are looking strong for both companies in the third quarter. Catch all the latest updates from the stock market here