For Samvat 2083, Motilal Oswal is positive on BFSI and capital markets, manufacturing, global outsourcing, exports, and consumption and digital. Banks are set for steady loan growth with improving margins, while rising participation supports capital markets segment. Manufacturers in healthcare devices, aerospace and auto components are scaling up on strong order books. Pharmaceutical ingredients, garments and port cargo are expected to gain from global outsourcing and trade agreements, while organized jewellery and quick-commerce platforms continue to gain market share.
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Motilal Oswal Report
Domestic brokerage Motilal Oswal highlights, Samvat 2083 will begin on a cautious note, with Middle East conflict keeping brent crude above $100/bbl, which in turn lifted CPI Inflation to 5.54% in September and prompting a 25 bps repo rate hike to 5.50%.
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Record FII outflows of about $28 billion in Jan–Sep'26 and a rupee near Rs 95/USD have weighed on large caps, with the Nifty down about 12% over Samvat 2082.
Despite all the odds, domestic growth remains robust, with GDP at 7.8% in Q1FY27. Motilal Oswal also believes FY27 to mark a return to double-digit earnings growth, with Nifty EPS expected to grow 16%/14% YoY in FY27/FY28 vs 5% in FY26.
Additionally, Nifty valuations are attractive at 17.5 times forward earnings, 16% below the long-term average. After a ~10% correction from record highs, midcaps trade 6% below their long-term average, while smallcaps remain at a 25% premium; thus one needs to follow a selective approach in stock picking.
For Samvat 2083, Motilal Oswal is positive on BFSI and capital markets, manufacturing, global outsourcing, exports, and consumption and digital. Banks are set for steady loan growth with improving margins, while rising participation supports capital markets segment.
Manufacturers in healthcare devices, aerospace and auto components are scaling up on strong order books. Pharmaceutical ingredients, garments and port cargo are expected to gain from global outsourcing and trade agreements, while organized jewellery and quick-commerce platforms continue to gain market share.
Taking into consideration all the above factors Motilal Oswal has recommeded 10 stocks for investors to 'Buy' this Diwali
The top in the list is SPR Auto Components with an upside of up to 41%, followed by Arvind Fashion with 37%, Titan and Unimech both at 35%.
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SPR Auto Components (CMP: Rs 4,374, Target Price: 6,150; Potential Upside 41%)
Investment Rationale
- SPR Auto Components is evolving from a piston maker into a diversified auto component platform, with more than 45% market share in pistons.
- Acquisitions contribute ~35% of revenue and lift content per vehicle to over Rs 30,000, while multi-fuel adoption adds runway.
- Motilal Oswal estimate a 21% net profit CAGR over FY26-29E, with core return on capital employed rising from 20% to 28%.
Eternal Ltd. (CMP: Rs 344; Target Price Rs 420; Potential Upside 22%)
Investment Rationale
- Eternal benefits from its leading food delivery platform and Blinkit's quick commerce network, with food delivery order value targeted to grow 20%+ long term.
- Blinkit's store target is raised to 3,500+ by FY27-end and ~5,000 by FY28-end, while food delivery margins stay stable.
- Motilal Oswal estimate revenue/net profit CAGRs of ~75%/~155% over FY26-28E.
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