Stock Picks Beyond AI: The two Indian stocks that made it to HSBC's Asia list for 2026

Two Indian listed stocks, PB Fintech Ltd., and Phoenix Mills Ltd. have made it to brokerage firm HSBC's list of 12 stocks beyond the AI theme for 2026.

In a note released on Thursday, November 20, HSBC highlighted these two names citing India's consumer theme and the rising popularity of financial products.

HSBC has projected a 23% upside potential for Phoenix Mills, while for PB Fintech, the upside potential increases to 30%. The brokerage wrote in its note that 2026 will be a year of growth beyond AI, dividends and forgotten stories in Asia.

Here's a look at HSBC's rationale behind including these stocks in this list:

PB Fintech

HSBC has a "buy" rating on PB Fintech with a price target of ₹2,250. It wrote in its note that the company has a substantial early-mover advantage in an underpenetrated market.

"The company is well past the growth stage that requires higher customer acquisition costs, so it can focus on scale, while benefitting from operating leverage," HSBC's note said.

With revenues from insurance products sold by large banks having grown at a Compounded Annual Growth Rate (CAGR) of 26% over financial year 2022-2025, which is 7x the revenue that PB Fintech reported in the previous financial year, the company has a great deal of growth headroom, according to the brokerage.

PB Fintech's revenue can grow at a 30% CAGR over financial year 2025-2028, according to HSBC's projections, while its EBITDA margin can improve substantially to nearly 20% by financial year 2028.

All of these factors could combine to aid a Profit After Tax (PAT) CAGR of 67% during the same timeframe.

Phoenix Mills

The largest mall operator in India with properties including shopping, entertainment, commercial, residential and hospitality properties. The company is also evolving into a mixed-use developer with a foray into residential property as well, beyond commercial.

"We see signs that Phoenix Mills is also adding new leasable areas at a faster pace. Its core legacy malls are undergoing refreshes and the management is actively executing a premiumization strategy in many of the malls," HSBC wrote in its note.

HSBC is also seeing signs of a turnaround in Phoenix Mills' office business performance, which is critical for the company to evolve into a mixed-use developer. The hotel business also continues to grow.

The brokerage has a "buy" rating on Phoenix Mills with a price target of ₹2,110.

Shares of Phoenix Mills are up only 3% in the last one month, while those of PB Fintech have risen 12% during the same period.