Top 10 Stock Picks for Diwali 2025: SMC Research Team

The stocks recommended by the SMC Research Team for Diwali 2025 are HCL Technologies, UltraTech Cement, Bajaj Auto, etc. But are they really worth it, and how much can I make from them? We’ve got you the complete list of the top 10 stocks for this auspicious occasion, with target price, upside potential, and much more.

So, let’s find out all 10 fundamental picks for Diwali 2025 backed by experts to help you grow your portfolio.

Indian Markets Ready to Celebrate Diwali

As India ushers in Vikram Samvat 2082, the spirit of prosperity and resilience brightens the entire economy. This momentum is propelled by ambitious government initiatives-including infrastructure acceleration, digital empowerment, Make in India 2.0, and PLI schemes-which are powerfully catalyzing investment and employment.

Also read: Muhurat Trading 2025: Timings, Importance, and How to Trade Smartly

The steady GST collections beautifully reflect expanding consumption, fiscal discipline, and deeper economic formalization. The Reserve Bank of India’s neutral monetary stance further strengthens this foundation, maintaining growth-supportive liquidity while keeping inflation in check.

Even amidst persistent global headwinds and US tariff impositions, India’s diversified trade portfolio and self-reliant domestic demand continue to drive its growth. Adding a celebratory boost, the recent reduction in GST rates on key sectors like automobiles, cement, and consumer durables is perfectly timed to ignite demand and improve affordability during the festive season.

10 Stocks to Buy During Diwali 2025

Here is the complete list of the top 10 stocks for Diwali 2025 for a time frame of the next 8 to 10 months:

1. HCL Technologies Limited

HCL Technologies share price is ₹1,486, and its target price is set at ₹1,693 with an upside potential of 14%.

• HCL Technologies Limited operates in over 60 countries and has a workforce of more than 2,23,000 employees.
• The company provides industry-leading capabilities in digital transformation, engineering, cloud, and AI-powered services and products.
• New deal wins achieved a record TCV of $2,569 million, up 41.8% QoQ and 15.8% YoY in Q2 FY26, without relying on mega-deals.
• Investments in upskilling and innovation, including partnerships with NVIDIA, Microsoft, and Google, position HCLTech to capture opportunities in AI-driven transformations.
• The company’s outlook remains positive, with FY26 guidance of 3%-5% revenue growth and 17%-18% EBIT margins providing a clear path forward, supported by a strong order book and investments in AI-driven innovations.
• Thus, it is expected that the stock may see a price target of ₹1,693 in 8 to 10 months’ time frame on a target P/BV of 6.55x and FY26 BVPS of ₹258.45.

2. UltraTech Cement Limited

UltraTech Cement share price is ₹12,336, and its target price is set at ₹13,847 with an upside potential of 12%.

• UltraTech Cement Limited, a flagship company of the Aditya Birla Group, is the largest cement manufacturer in India, with a consolidated grey cement capacity of 192.26 million tonnes per annum (MTPA) and a white cement/putty capacity of 2.7 MTPA as of Q1 FY26.
• The company operates across 82 locations in India and has a presence in overseas markets. Its operations span grey cement, ready-mix concrete (RMC), white cement, and building products, with a strong focus on innovation, efficiency, and sustainable growth.
• In Q1 FY2026, the consolidated net sales increased 13% YoY to ₹21,040 crores. PBIDT surged 44% YoY to ₹4,591 crores, and PAT rose 49% YoY to ₹2,226 crores.
• The company achieved an operating EBITDA per metric tonne of ₹1,198, up ₹337 YoY, driven by improved realizations and cost optimization.
• UltraTech Cement is poised for sustained growth, driven by its leadership in the Indian cement market, strategic capacity expansions, and robust financial performance.
• With a planned capacity increase to 212.2 MTPA by FY27 and a focus on integrating ICL and Kesoram assets, UltraTech is well-equipped to meet India’s rising cement demand.
• Thus, it is expected that the stock may see a price target of ₹13,847 in 8 to 10 months’ time frame on a one year average P/BVx of 5.18x and FY2026 BVPS of ₹2673.20.

3. Bajaj Auto Limited

Bajaj Auto share price is ₹9,142, and its target price is set at ₹10,273 with an upside potential of 12%.

• Bajaj Auto is engaged in the business of development, manufacturing, and distribution of automobiles such as motorcycles, commercial vehicles, electric two-wheelers, etc.
• In Q1 FY26, the company introduced several new variants, complemented by a fresh Pulsar TV campaign, reinforcing its premium segment focus.
• Its commercial vehicles retained leadership, with ICE 3-wheelers at 75% share and e-autos over 35%, led by the profitable 7012 wide-body variant.
• In Q1 FY26, Bajaj Auto posted ₹12,584 crores revenue, up 6% YoY, driven by exports, premium motorcycles, CVs, and Chetak. EBIDTA rose 3% to ₹2,482 crore, though margins fell 50 bps to 19.7% due to lower dollar realizations, partly offset by mix and operating leverage.
• Bajaj Auto’s balance sheet remains robust, with ₹1,200 crores in free cash flow generated in Q1 FY26. Management continues to prioritize premiumization, EV supply chain derisking, and export expansion, while maintaining disciplined profitability.
• Thus, it is expected that the stock may see a price target of ₹10,273 in 8 to 10 months’ time frame on a 2 year’s average P/E of 31.26x and FY26 (E) EPS of ₹328.64.

4. Punjab National Bank

Punjab National Bank share price is ₹114, and its target price is set at ₹134 with an upside potential of 18%.

• The business of the bank has increased 12% YoY to ₹27,19,277 crores end June 2025, driven by a 10% rise in advances to ₹11,29,898 crores. Deposits increased 13% to ₹15,89,379 crores at end June 2025.
• Advances growth was driven by retail loans rising 12% YoY to ₹2,62,219 crores at end June 2025, while credit to agriculture increased 6% to ₹1,78,885 crores and MSME 19% to ₹1,69,426 crores at end June 2025.
• The Net Interest Margin (NIM) of the bank stood at 2.70% in Q1 FY2026. The bank has maintained the NIM guidance of 2.8-2.9% for FY2026.
• The ratio of gross NPA stood at 3.78% as of 30th June 2025 as compared to 4.98% as of 30th June 2024.
• For FY26, the bank is targeting credit growth of 11-12% and deposit growth of 9-10%. The lender has a strong corporate loan pipeline of ₹1.29 lakh crores in various disbursement stages.
• Thus, it is expected that the stock may see a price target of ₹134 in 8 to 10 months’ time frame on a target P/BV of 1.15x and FY26 BVPS of ₹116.91.

5. Canara Bank

Canara Bank share price is ₹125, and its target price is set at ₹169 with an upside potential of 35%.

• The business of the bank has increased 11% YoY to ₹25,63,984 crores end June 2025, driven by 12% surge in advances to ₹10,96,329 crores. Deposits rose 10% to ₹14,67,655 crores at end June 2025.
• Advances growth was driven by retail loans rising 34% YoY to ₹2,35,418 crores at end June 2025, while credit to agriculture increased 3% to ₹2,48,836 crores and MSME 11% to ₹1,46,646 crores at end June 2025.
• The CASA deposits of the bank increased 9% YoY to ₹4,14,976 crores at end June 2025.
• Net interest income (NII) declined 1.71% to ₹9,009 crores as on 30 June 2025 as compared with ₹9,166 crores as on 30 June 2024.
• Its NIM stood at 2.55%, down 17 bps QoQ, with management of the bank guiding that it will not fall below 2.5% in Q2 FY26. The bank expects gradual improvement in the second half if no further rate cuts occur.
• The asset quality of the bank has improved in Q1 FY2026. The ratio of gross NPA stood at 2.69% as of 30th June 2025 as compared to 4.14% as of 30th June 2024. Thus, it is expected that the stock may see a price target of ₹169 in 8 to 10 months’ time frame on target P/BV of 1.40x and FY26 BVPS of ₹121.

6. Jindal Steel Limited

Jindal Steel share price is ₹1,008, and its target price is set at ₹1,143 with an upside potential of 13%.

• Jindal Steel Limited is an integrated steel producer and operates on a robust mine-to-metal model, leveraging captive resources, advanced manufacturing capabilities, and a global distribution network.
• With state-of-the-art facilities in Angul (Odisha), Raigarh (Chhattisgarh), and Patratu (Jharkhand), the company has a diversified product portfolio catering to infrastructure, construction, automotive, oil & gas, and real estate sectors.
• The company’s diversified portfolio, including flats, longs, and specialized steel products, supports stable realizations, with blended average selling price rising 4% QoQ despite a 10% drop in sales volume.
• In Q1 FY2026, it reported a consolidated gross revenue of ₹14,336 crores, adjusted EBITDA of ₹2,984 crores (up 35% QoQ), and PAT of ₹1,496 crores (up 36% QoQ).
• The EBITDA per tonne improved to ₹15,680, driven by higher average selling prices and lower input costs, including a $11 per tonne reduction in coking coal costs.
• The company’s strategic expansions, including the Angul facility’s rise to 12 MTPA, captive resource integration, and focus on value-added products, ensure cost efficiency and revenue stability.
• Thus, it is expected that the stock may see a price target of ₹1,143 in 8 to 10 months’ time frame on a current P/BVx of 2.18x and FY26 BVPS of ₹524.21.

7. NMDC Limited

NMDC share price is ₹74.9, and its target price is set at ₹90 with an upside potential of 20%.

• NMDC is engaged in the exploration and production of iron ore, along with diamond production and the sale of sponge iron, and the generation and sale of wind power.
• On the capex front, it is executing its most ambitious capex and expansion roadmap to date. In FY25, the company recorded its highest-ever capex at ₹3,700 crores, with guidance of ₹4,000-₹4,200 crores for FY26, before scaling sharply to over ₹10,000 crores annually in FY27-FY28 as key projects shift into execution.
• As of Q2 FY26, projects worth about ₹43,000 crores have already been sanctioned and are progressing at various stages.
• It has achieved its best-ever Q1 FY26 performance, with iron ore production at 119.94 LT (up 31% YoY) and sales at 115.17 LT (up 14% YoY) and reported PAT rising 33% QoQ to ₹1,967 crores, though revenue from operations declined 3.8% QoQ to ₹6,739 crores. On a YoY basis, net profit grew marginally by 0.2%, supported by a 24.5% revenue increase.
• The average domestic sales realization improved marginally to ₹5,353 per tonne, reflecting a 1% YoY rise. Segmentally, pellets and other minerals revenue jumped 698% to ₹574 crores, while iron ore revenue grew 15.4% YoY to ₹6,199 crores.
• Thus, it is expected that the stock may see a price target of ₹90 in 8 to 10 months’ time frame on a current P/BV of 2.28x and FY26 BVPS of ₹39.49.

8. NLC India Limited

NLC India share price is ₹264, and its target price is set at ₹355 with an upside potential of 34%.

• NLC India is engaged in the business of mining of lignite and generation of power by using lignite as well as Renewable Energy Sources.
• It plays a key role in meeting the electricity demands of multiple states, including Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Telangana, Rajasthan, and the Union Territory of Puducherry and Andaman.
• The company plans a total CAPEX of around ₹1.16 lakh crores through FY30, with annual spending of ₹23,601 crores in FY26, ₹19,000 crores in FY27, and about ₹20,000 crores each in FY28 and FY29.
• The company is in a strong capacity expansion phase across thermal (NUPPL, Neyveli), mining (Talabira, Pachwara South, Machhakata), and renewables (810 MW Rajasthan solar, 3 GW JV pipeline, 500 MW BESS).
• Backed by regulatory approvals and a ₹23,601 crores FY26 capex plan, growth will be supported by the NIRL IPO in Q2 FY27. Its diversified portfolio, strong regulatory backing, and renewable scale-up strategy reinforce positive long-term growth prospects.
• Thus, it is expected that the stock may see a price target of ₹355 in 8 to 10 months’ time frame on an expected P/BV of 2.40x and FY26 (E) BVPS of ₹147.90.

9. Kalpataru Projects International Limited

Kalpataru Projects share price is ₹1,261, and its target price is set at ₹1,659 with an upside potential of 32%.

• Kalpataru Projects International Limited (KPIL) operates across six high-growth business verticals, including Power Transmission & Distribution, Buildings & Factories, Oil & Gas, Water, Railways, and Urban Infrastructure.
• KPIL has a global reach spanning 75 countries with live projects in 30+ countries, employing over 11,000 people worldwide, representing 40+ nationalities.
• The company has delivered exceptional Q1 FY26 results, marking the highest ever Q1 revenue and profitability in the company’s history. Consolidated revenue grew 35% year-on-year to ₹6,171 crores, while EBITDA increased 39% to ₹525 crores with margins improving to 8.5%.
• KPIL maintains a strong order book of ₹65,475 crores as of June 30, 2025, representing 14% YoY growth. The company secured ₹9,899 crores in new orders YTD in FY26, with notable wins including the largest-ever B&F order exceeding ₹2,500 crores. The order book provides excellent revenue visibility with 77% domestic and 23% international exposure, ensuring a sustainable growth trajectory.
• With 2.5-3 years of revenue visibility from a robust order book and management targeting 20-25% growth, the company appears poised for sustainable expansion with improving margins.
• Thus, it is expected that the stock may see a price target of ₹1,659 in 8 to 10 months’ time frame on the current P/Ex of 30.43x and FY26 EPS of ₹54.52.

10. Vijaya Diagnostic Centre Limited

Vijaya Diagnostic Centre share price is ₹993, and its target price is set at ₹1,167 with an upside potential of 18%.

• Vijaya Diagnostic Centre is one of India’s largest integrated diagnostic chains. The company offers comprehensive diagnostic services ranging from basic pathology to high-end radiology. The company provides its services across 13 cities through its 81 diagnostic centers. and 11 reference laboratories.
• On the development front, the company continued its aggressive network expansion in Q1 FY26, commissioning five new hubs and one spoke across Pune, Bangalore, and West Bengal.
• Moreover, the management of the company remains on track to open 10 hubs in FY26, including three in Q2 and two additional hubs in West Bengal in H2 FY26.
• For FY26, it has guided a capex outlay of ₹150-155 crores for setting up new centers, with replacement capex maintained at 2-3% of topline. Plans for FY27 are under evaluation as management explores new locations across core and emerging geographies.
• Despite expansion-related costs, management expects only a 1-1.5% YoY impact on margins, maintaining full-year EBITDA margin guidance at a healthy 38-38.5%, reflecting better operational efficiency.
• During Q1 FY26, EBITDA stood at ₹73.53 crores, registering a growth of 20.07% compared with ₹61.24 crores in Q1 FY25. EBITDA margin maintained at 39.1% in Q1 FY26 as against 39.2% in Q1 FY25.
• Thus, it is expected that the stock may see a price target of ₹1,167 in 8 to 10 months’ time frame on a current P/BV of 12.54x and FY26 (E) BVPS of ₹93.09.

Summary of Top 10 Stock Picks for Diwali 2025

S. No.	Company Name	Sector	Market Cap (₹ Cr)	Current Market Price (₹)	Target Price (₹)	Upside Potential (%)
1	HCL Technologies	IT – Software	4,03,305	1,486	1,693	14%
2	UltraTech Cement	Cement	3,63,527	12,336	13,847	12%
3	Bajaj Auto	Automobile	2,55,285	9,142	10,273	12%
4	Punjab National Bank	Banks	1,30,732	114	134	18%
5	Canara Bank	Banks	1,13,837	125	169	35%
6	Jindal Steel	Steel	1,02,804	1,008	1,143	13%
7	NMDC	Mining & Mineral Products	65,842	74.9	90	20%
8	NLC India	Power Generation & Distribution	36,635	264	355	34%
9	Kalpataru Projects International	Infrastructure Developers & Operators	21,531	1,261	1,659	32%
10	Vijaya Diagnostic Centre	Healthcare	10,204	993	1,167	18%

* Current Market Price as on Oct 17, 2025; Recommended for 8-10 months

Conclusion

The current market environment presents an opportunity for investors, with a diversified set of sectors offering high-potential avenues for wealth creation. As Vikram Samvat 2082 begins, coinciding with Diwali 2025, this period signals a strategic entry point to participate in India’s next phase of economic expansion, anchored firmly in confidence, inclusivity, and long-term value creation.

So, open free Demat Account with SMC Global Securities and this Diwali gift yourself the joy of smart investing.

Author: All Content is verified by SMC Global Securities.