As India gears up to celebrate the festival of lights, leading brokerages are lighting up investor sentiment with their top stock picks for the new Samvat year.
ICICI Securities Ltd. has unveiled its list of preferred stocks for Muhurat trading 2025, identifying quality names across banking, manufacturing, engineering, technology, and consumer sectors that are poised to benefit from India’s improving macroeconomic landscape.
The past Samvat year was marked by volatility and consolidation, with the Nifty hovering around the 25,000 mark amid global uncertainty — from geopolitical tensions to tariff wars and leadership changes across major economies.
On the domestic front, however, the picture brightened: inflation dipped below 3%, the fiscal deficit stayed contained, GDP growth remained healthy at around 7%, and the RBI initiated a rate-cut cycle, lowering policy rates by 100 basis points during CY25. With the rollout of GST 2.0 reforms and the potential for a US-India trade deal, analysts see renewed momentum in consumption, manufacturing, and earnings growth.
ICICI Securities expects corporate earnings to grow at a compound annual growth rate of 12% over FY25–27, and projects the Nifty to reach 27,000 by next Diwali, supported by double-digit earnings growth resuming from fiscal 2027 onwards.
HDFC Bank | Target: Rs 1,150 | Buy
India’s largest private bank is emerging stronger post-merger, focusing on deposit optimisation and preparing for the next leg of growth.
Having stabilised its credit-deposit ratio, HDFC Bank is now pivoting to accelerated credit growth driven by urban retail, MSME lending, and consumption uptick.
Margins may remain under short-term pressure, but recovery is expected in the second half with improved liquidity, lower-cost borrowings, and stronger unsecured lending.
Key Risk: Slower credit growth or deeper-than-expected rate cuts affecting margins.
Larsen & Toubro | Target: Rs 4,500 | Buy
India’s infrastructure bellwether is set to benefit from a record order backlog of Rs 6.1 lakh crore, strong execution and divestment of non-core assets like the Hyderabad Metro. With an aspiration to achieve 18% ROE by fiscal 2026, L&T remains a proxy for India’s infrastructure and manufacturing growth story.
Key Risk: Execution delays or weaker return ratio improvement.
Allied Blenders & Distillers | Target: Rs 640 | Buy
The country’s third-largest spirits company is riding a premiumisation wave, expanding its “Prestige & Above” portfolio and investing in backward integration. Margins are set to rise to 15% by fiscal 2028, with a further boost from potential benefits under the UK-FTA.
Key Risk: Policy changes or excise hikes in key states.
CreditAccess Grameen | Target: Rs 1,600 | Buy
After a year of stress in its loan book, the microfinance leader is showing signs of revival. Asset quality stabilisation and improving collection efficiency are expected to drive 14–18% AUM growth in financial year 2026, supported by rural demand and improved borrower leverage.
Key Risk: Delay in regional recovery, especially in Karnataka, may impact credit cost.
AIA Engineering | Target: Rs 4,060 | Buy
The world’s second-largest high-chrome wear parts producer is back on its growth path, aided by new orders from global mining giants like Chile’s copper industry. With expansion in China and Ghana and a turnaround expected from fiscal 2026, AIA is well-positioned for 7–9% CAGR in revenue and profit over FY25–27E.
Key Risk: Delay in mining conversions or higher freight/input costs.
Kaynes Technology India | Target: Rs 8,900 | Buy
Kaynes continues to be a standout in India’s electronics and semiconductor revolution. With ambitious investments exceeding Rs 4,700 crore in chip and PCB manufacturing, backed by government subsidies, Kaynes is on track for 48% revenue CAGR over FY25–28E. Its deep design capabilities and vertical integration make it one of the few homegrown end-to-end EMS players.
Key Risk: Execution delays in new projects or changes in government policy.
Data Patterns | Target: Rs 3,560 | Buy
A rising star in defence and aerospace electronics, Data Patterns has a healthy order backlog of Rs 1,080 crore and expects fresh inflows of up to Rs 3,000 crore over the next two years. Its products for radar, electronic warfare, and space-based systems position it well for India’s defence modernisation drive.
Key Risk: High dependence on government contracts.
Greenlam Industries | Target: Rs 300 | Buy
The laminate and decorative surfaces major has completed large-scale expansion into plywood and chipboard, tripling its addressable market. With capacity utilisation rising, revenues are expected to grow at 16.7% CAGR over FY25–28E, and margins to expand from 10.7% to 13.7%.
Key Risk: Global trade disruptions affecting exports.
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