HSBC highlights two Indian 'forgotten gems' beyond the AI trade for up to 68% upside

Brokerage firm HSBC has flagged a set of “forgotten gems” stocks across Asia that it believes are being overlooked amid the ongoing artificial intelligence-led market rally. The note highlights two Indian names, Godrej Properties and PB Fintech, as stocks where investors can still find value outside the AI trade.

Released on Tuesday, May 19, HSBC's Asia strategy note titled “Asia’s Forgotten Gems” said the strong rally in AI-linked stocks has made markets increasingly concentrated, with investor attention shifting away from high-quality companies with strong brands, market positioning and sustainable growth prospects.

The brokerage included Godrej Properties and PB Fintech among its list of 10 “under-appreciated stocks in Asia”. Here's what it had to say:

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Godrej Properties

HSBC said Godrej Properties benefits from its pan-India presence, deep balance sheet, brand strength and execution capabilities in sourcing and selling large projects. It added 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.

"We expect the appetite for the latter to remain far more resilient and almost delink from the near-term macro weakness," HSBC said.

The note said Godrej Properties’ 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 added that the stock trades at a 14% discount to its June 2026 NAV estimate.

HSBC has a price target of ₹2,900 on Godrej Properties implies an upside potential of close to 70% from current levels.

Key Risks

: Slow project addition, new land acquisitions at higher prices, increasing competitive intensity and significant delays in project completions or cost escalations.

PB Fintech

On PB Fintech, HSBC said the company "operates India’s largest online insurance marketplace, Policybazaar," and remains well placed to benefit from the low penetration of financial products in India.

The brokerage said PB Fintech has a strong first-mover advantage and is scaling 3-4x faster than the broader industry. It also noted that concerns around commission changes, acquisition-led expansion and AI disruption appear overdone.

HSBC added that 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 impact from AI looks limited given insurance distribution is still a push-led model and physical engagement is expected to stay important for conversion," the note said.

The brokerage also highlighted that PB Fintech is already using AI and machine learning tools to improve underwriting, risk management and advisory services.

HSBC has a price target of ₹2,100 on PB Fintech, which implies an upside potential of close to 30% from current levels.

Key Risks: Changes in commission structure towards deferment of payouts, introduction of clawback provisions, inability to scale up new initiatives or turn them profitable, high competition from private peers or public market places, and loss of key management personnel.

Shares of PB Fintech were trading over 4% up at ₹1,818.60 as of 11.09 am. The stock has gained more than 12% in the past month.