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The festive season of Diwali is not only a time for celebration and togetherness but also an opportune moment for investors to consider strategic portfolio adjustments. This year, numerous brokerages, including prominent names like HDFC Securities, JM Financial, Sharekhan, AngelOne, and ICICIdirect, have unveiled their top stock recommendations, offering insights into potential festive-season gains. Among the stocks favoured are sector giants like Reliance Industries (RIL) and State Bank of India (SBI), along with other high-growth names, reflecting sectoral resilience and strategic growth potential.
Reliance Industries, backed by HDFC Securities, JM Financial, Sharekhan, and 5paisa, emerges as a top Diwali pick due to its expanding telecom, retail, and new energy divisions. Brokerages have set target prices ranging from ₹3,243 (HDFC Securities) to ₹3,500 (JM Financial), banking on potential 15% profit CAGR through FY27. This optimism stems from the belief that these divisions hold significant growth potential. However, risks associated with high capex and pressures from natural gas pricing are acknowledged.
State Bank of India (SBI) stock, supported by Religare, Kedia Advisory, HDFC Securities, and 5paisa, is another prominent recommendation. This recommendation is driven by robust technical indicators and stable growth in India’s banking sector. Brokerages suggest a target range of ₹915-₹1,240, indicating potential 20-55% upsides as the stock stabilises near its 200-day EMA and earnings growth remains on track.
Mphasis, a player in the IT sector, is marked by Phillip Capital, 5paisa, and Anand Rathi as a promising Diwali pick. These brokerages are bullish on Mphasis based on bullish technical patterns and sectoral momentum, predicting target prices ranging from ₹3,560 (5paisa) to ₹4,400 (Phillip Capital). The company’s strong position in digital transformation is expected to drive long-term growth.
Jyothy Labs, a company engaged in the fast-moving consumer goods (FMCG) sector, is endorsed by Angel One, HDFC Securities, and Religare. This endorsement stems from Jyothy Labs’ national, multi-product transformation and projected revenue CAGR of over 12% through FY26. Brokerages have set targets from ₹600 (HDFC Securities) to ₹680 (Angel One), highlighting improved margins and a balanced product mix as key drivers of its growth trajectory.
Source: Diwali Top Picks: Brokerages align on high-growth stocks — details here