Samvat 2083 stock picks: 10 ideas from India’s top brokerages for the next Diwali

As the domestic stock market is showing signs of revival with FIIs buying the dip in bluechip stocks and Q2 results adding to the optimism, brokerages are favouring companies with visible earnings, strong balance sheets, structural growth and exposure to India’s domestic investment cycle for the Hindu financial year Samvat 2083.

Motilal Oswal Financial Services estimates that the Nifty is trading at 17.5 times forward earnings, around 16% below its long-term average. Nuvama Wealth Management said the index’s trailing price-to-earnings multiple had fallen to around 19 times, among the lowest levels since 2022.

However, Motilal Oswal said midcaps were trading 6% below their long-term average, while smallcaps still carried a 25% premium. That makes stock selection critical for investors looking at the period until next Diwali.


Here are 10 stock ideas identified across the Diwali reports of Motilal Oswal, Axis Securities, SBI Securities, HDFC Securities, ICICI Securities and PL Capital.

1) Kotak Mahindra Bank: A private-bank recovery play

Kotak Mahindra Bank features in both Motilal Oswal’s and ICICI Securities’ Muhurat portfolios.

Motilal Oswal expects the bank to benefit from growth across retail, small-business and corporate lending. Margins could recover as surplus foreign-currency deposits are deployed and higher repo rates pass through to loan yields. It estimates net-interest-income and net-profit compound annual growth rates of about 19.7% and 24.1%, respectively, between fiscal 2026 and fiscal 2028.

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ICICI Securities expects improving margins, steady credit growth and moderation in credit costs to support earnings and return on assets. Motilal Oswal’s target price is Rs 500, while ICICI Securities has a target of Rs 540.

2) Bharat Electronics: Defence visibility through a large order book

Bharat Electronics is one of the clearest beneficiaries of India’s defence and electronics push.

PL Capital said the company had an order book of Rs 687.2 billion, equivalent to 2.3 times trailing sales. Key programmes include electronic fuses, LCA Mk1A, LR-SAM, radar and electronic-warfare systems.

The company is also part of a 50:50 consortium with Larsen & Toubro for the Advanced Medium Combat Aircraft programme. Opportunities in drones, counter-drone systems, missile electronics, cybersecurity and electronic warfare provide additional growth avenues.

PL Capital expects revenue, EBITDA and profit compound annual growth rates of 16.3%, 16.4% and 16.7%, respectively, between fiscal 2026 and fiscal 2029. Its target price is Rs 490, while HDFC Securities has a target of Rs 475.

3) Indian Hotels: A structural bet on hospitality demand

Indian Hotels appears across the Axis Securities, SBI Securities and ICICI Securities portfolios, making it one of the most repeated hospitality ideas in the reports.

Axis Securities said the company was on track to cross 400 operational hotels in the third quarter of fiscal 2027 and planned 50 new openings during the year. Its asset-light model, strong occupancy trends and expanding select-service portfolio are expected to support growth.

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ICICI Securities expects revenue to grow at a 13% compound annual rate between fiscal 2026 and fiscal 2029, with margin expansion supported by better room revenue per available room and asset upgrades.

The target prices range from Rs 900 at Axis Securities to Rs 935 at SBICAP Securities and Rs 990 at ICICI Securities.

4) Adani Ports: Capacity expansion and logistics optionality

Adani Ports is a preferred idea at Motilal Oswal and ICICI Securities.

Motilal Oswal said the company had strong cash flows, a cash balance of Rs 125 billion and net debt-to-operating profit of 1.8 times. Port-capacity additions, infrastructure projects and global acquisitions provide visibility, with cargo volumes expected to grow at a 14% compound annual rate between fiscal 2026 and fiscal 2028.

ICICI Securities highlighted the company’s expansion into logistics parks, warehouses, rail rakes and trucks. It expects revenue, EBITDA and net cash-flow growth of 19%, 18% and 18%, respectively, between fiscal 2026 and fiscal 2031.

Motilal Oswal has a target price of Rs 2,130, while ICICI Securities has a target of Rs 2,210.

5) Eternal: The quick-commerce profitability bet

Eternal, the parent of Zomato and Blinkit, is among the higher-growth ideas in the Motilal Oswal and Axis Securities reports.

Motilal Oswal expects the company’s food-delivery platform and quick-commerce network to remain the key growth drivers. Blinkit’s store target has been raised to more than 3,500 by the end of fiscal 2027 and around 5,000 by the end of fiscal 2028.

Axis Securities said Blinkit’s quick commerce net order value rose 79.3% year-on-year in the second quarter of fiscal 2027. It also highlighted rising monthly customers and improving order economics.

Motilal Oswal expects earnings per share to compound at 155% between fiscal 2026 and fiscal 2028. Its target price is ₹420, while Axis Securities has a target of Rs 365. The sharp difference reflects the stock’s high-growth, high-valuation profile.

6) Titan: Organised jewellery and premium consumption

Titan is Motilal Oswal’s preferred organised consumption idea.

The brokerage said Titan was benefiting from its leading jewellery brand, strong sourcing capabilities and a rising share of studded jewellery. The shift in purchases towards organised players, store expansion and growth in non-jewellery businesses offer additional levers.

Titan had 3,551 stores as of June 2026. Motilal Oswal expects revenue, operating profit and net profit to compound at 17%, 21% and 23%, respectively, between fiscal 2026 and fiscal 2029.

Stable gold prices could also improve margin visibility, according to the brokerage. Motilal Oswal has a target price of Rs 6,000.

7) Coforge: An IT recovery and AI-productivity play

Coforge is Axis Securities’ preferred technology services idea at a time when Indian IT valuations have corrected and global investors are reassessing the AI trade.

The company signed eight large deals in the second quarter of fiscal 2027, including a $230 million engagement with the UK public sector. Axis Securities said deal wins were spread across the public sector, banking, financial services, insurance, high-tech and retail.

Coforge has deployed more than 520 active AI engagements across 225 clients, with 260 AI agents operating in live environments. The brokerage said these deployments had delivered productivity gains and supported the company’s margin outlook.

Axis Securities has a target price of Rs 2,245, implying an 18% upside from the price cited in its report.

8) Tata Steel: Capacity ramp-up and a cyclical recovery

Tata Steel is a preferred metals idea in the SBICAP Securities and HDFC Securities reports.

SBI Securities said the recently expanded Kalinganagar facility, higher-value automotive steel production and downstream facilities should lift volumes and improve realisations. The planned 4.8-million-tonne expansion at NINL is expected to strengthen the long-products portfolio.

A recovery in global steel prices, improved demand-supply conditions and better realisations could support revenue growth and operating margins. Tata Steel has also reiterated its guidance for around 6% consolidated sales-volume growth in fiscal 2027.

SBI Securities has a target price of Rs 200, while HDFC Securities has a target of Rs 210.

9) Blue Star: Cooling demand meets data centre growth

Blue Star is PL Capital’s mid-cap bet on India’s structural cooling demand and data centre expansion.

PL Capital said the room-air-conditioner industry was expected to grow around 25% in fiscal 2027, supported by low penetration and market-share gains. Blue Star is targeting unitary cooling-product EBIT margins above 6.5% through price increases, product rationalisation and cost optimisation.

The company is also seeing strong traction in data-centre mechanical, electrical and plumbing projects. Order bookings in that business are expected to reach Rs 40 billion in fiscal 2027, supported by investments from hyperscale and colocation players.

PL Capital expects revenue, EBITDA and profit to compound at 17.6%, 18.1% and 23.2%, respectively, between fiscal 2026 and fiscal 2029. Its target price is Rs 1,783.

10) Shriram Finance: Funding-cost and asset-growth tailwinds

Shriram Finance is PL Capital’s financial services pick for the next Diwali.

The brokerage expects the company’s assets under management to compound at around 18% between fiscal 2026 and fiscal 2029, supported by capital infusion from MUFG Bank, vehicle-finance demand and expansion in the non-vehicle-finance portfolio.

A stronger balance sheet and potential credit-rating upgrade could reduce the cost of funds. Diversification across vehicle finance, MSME loans and gold loans could also improve the company’s growth mix.

PL Capital expects return on assets to improve to around 3.1% by fiscal 2029 as operating leverage strengthens. Its target price is Rs 1,200.


(Disclaimer: This article has been written by Nikhil Agarwal, who is not a SEBI-registered Research Analyst or an Investment Adviser. Nikhil Agarwal and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimershere)