Diwali stock picks: 10 stocks brokerages are bullish on for Samvat 2081

Diwali, the festival of lights, which is associated with prosperity will be celebrated on November 1. The festival also marks the beginning of Hindu new year Samvat 2081. Samvat 2080 has been a stellar year for markets, with new highs for the Nifty and gold, alongside India’s strong economic indicators. While challenges like geopolitical uncertainty, inflation, and variable rural and urban demand persist, brokerage firms believe these ten stocks have strong growth potential.

Top Diwali picks from brokerages

Ambuja Cement: Ambuja Cement is expanding through both organic and inorganic means, aiming to reach capacity of 140 million tonnes per annum (mtpa) by FY28. Brokerage firm Prabhudas Lilladher has set target price of Rs 756 per share.

Bharat Electronics: Bharat Electronics holds Rs 50,000 crore order pipeline, driven by key defence projects and metro rail projects (Kavach). Prabhudas Lilladher has target price of Rs 341.

Cipla: Prabhudas Lilladher is positive on Cipla on the back of strong traction in respiratory and other portfolios. The company has potential to grow domestic formulations in double digits. The brokerage has target price of Rs 1,680.

ICICI Bank: With robust CET-1 at 16 per cent and liquidity ratios, ICICI Bank is expected to weather NIM compression, achieving core earnings growth of 17 per cent annual by FY27. Prabhudas Lilladher has set target price of Rs 1,520 per share.

LTI Mindtree: With an anticipated dollar revenue growth of 9.7 per cent and earnings growth at 13.7 per cent through FY24-27, LTI Mindtree benefits from discretionary and non-discretionary spending. The brokerage has set target price of Rs 7,360.

Max Healthcare:  The company’s capacity addition plans include 3,500 new beds by FY28, with expected earnings before interest, taxes, depreciation, and amortisation (EBITDA) compounded annual growth rate (CAGR) of 25 per cent through FY24-27E. The brokerage has set target price of Rs 975.

Reliance Industries: Strong performance from Jio, retail, and potential new energy ventures are expected to contribute to 12 per cent earnings per share (EPS) CAGR from FY25-27. The brokerage has set target price of Rs 2,942.

State Bank of India: The country’s largest bank holds 22-23 per cent market share in credit with consistent loan growth across retail, corporate, and SME sectors, it benefits from a stable deposit base and funding advantage. SBI ’s strong internal accruals, leadership in term deposits, and efficient credit management position it well for future growth, especially with an expected revival in corporate capex. Brokerage firm Religare has target price of Rs 941.

ITC: ITC is vigorously implementing its ITC Next strategy to shape future growth and profitability. The extensive strategy reset unleashes new drivers of structural competitiveness by strengthening the multiple drivers of growth, innovation and R&D, building agile, resilient and efficient Supply Chains, mainstreaming digital adoption, sustainability, and ensuring cost optimisation. The ITC Next strategy focuses on exploring opportunities to craft disruptive business models anchored at the intersection of the mega trends of digital and sustainability, while leveraging the Company's institutional strengths. Brokerage firm Religare has set target price of Rs 594.

Titan Company: Titan enjoys a strong brand reputation, bolstered by its association with the Tata Group, which is renowned for its commitment to ethical business practices and high-quality standards. The company leverages a broad portfolio of established brands across multiple lifestyle segments. In the jewellery category, its key brands include Tanishq, Mia, CaratLane, and Zoya. Meanwhile, in the watches and wearables space, Titan's portfolio features well-recognized names like Titan, Sonata, Fastrack, Raga, and Xylys. Brokerage firm Religare has set target price of Rs 4,270.