As we enter Samvat 2083, market sentiment remains cautious amid global uncertainty, foreign capital outflows, and elevated energy prices. According to Religare Broking, in this environment, sustainable wealth creation is likely to depend less on broad-based market movements and more on identifying businesses capable of delivering consistent earnings growth, strengthening competitive positions and outperforming their respective sectors.
In its Diwali stock picks, Religare Broking has identified eight companies across pharmaceuticals, technology, automobiles, hospitality, financial services, power and infrastructure where it sees identifiable business drivers supporting the potential for stronger performance.
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“The common thread is not simply exposure to India's long-term growth opportunity, but the possibility of earnings growth exceeding sector expectations as company-specific catalysts gain traction,” said the brokerage firm.
Here are eight Diwali stock picks by Religare Broking:
Bajaj Finance | Target Price: Rs 1,096
Religare Broking initiated its coverage on Bajaj Finance shares with a ‘Buy' rating and a target price of Rs 1,096. It estimates FY26–FY28E CAGRs of 18.9% in NII, 19.3% in PPoP and 18.9% in PAT, driven by sustained AUM growth, a diversified lending franchise and operating leverage.
The brokerage firm believes Bajaj Finance is well placed to deliver sustained earnings compounding over the medium term, supporting our positive view on the stock
Larsen & Toubro | Target Price: Rs 4,510
With earnings growth supported by a diversified business mix and a strong project pipeline, Religare Broking initiates coverage on Larsen & Toubro (L&T) shares with a ‘Buy' rating and a target price of Rs 4,510 apiece.
Kotak Mahindra Bank | Target Price: Rs 518
The brokerage firm maintained ‘Accumulate' rating on Kotak Mahindra Bank shares with a target price of Rs 518. It estimates FY26–FY28E CAGRs of 23.8% in NII, 19.7% in PPoP and 22.4% in PAT, driven by advances growth, potential NIM recovery and operating leverage.
HCL Technologies | Target Price: Rs 1,680
HCL Technologies' strong deal pipeline, growing AI revenues, improving margins and diversified technology portfolio support medium-term growth prospects. Religare Broking initiated its coverage on HCL Technologies shares with a ‘Buy' rating and a target price of Rs 1,680, based on 21.5x FY28E earnings, reflecting the company's growth opportunities and potential for sustained earnings improvement.
Mahindra & Mahindra | Target Price: Rs 4,377
M&M's strong SUV and tractor franchises, expanding EV portfolio, product pipeline and diversified businesses support growth prospects. The brokerage firm maintained a ‘Buy' call with M&M share price target of Rs 4,377, based on 22.9x FY28E earnings, reflecting the company's growth potential and earnings outlook.
Indian Hotels Company | Target Price: Rs 990
Religare Broking initiated coverage on Indian Hotels Company shares with a ‘Buy' rating and a target price of Rs 990, based on 41.8x FY28E earnings. The company's strong brand portfolio, sustained hospitality demand, expanding asset-light network and growing management fee income support its medium-term growth prospects.
Tata Power | Target Price: Rs 421
The brokerage firm maintains a ‘Buy' rating on Tata Power shares with a target price of Rs 421, based on our blended P/E and EV/EBITDA valuation approach. It estimates PAT to grow at a CAGR of 25% over FY26–FY28E, supported by renewable capacity additions, a higher contribution from solar manufacturing and stable regulated earnings.
Glenmark Pharmaceuticals | Target Price: Rs 2,897
Religare Broking expects Glenmark Pharmaceuticals' earnings growth to be supported by specialty expansion, overseas momentum and a better business mix. Greater contribution from higher-value therapies, product traction and potential IGI monetisation should reinforce earnings visibility.
Accordingly, it initiated coverage on Glenmark Pharmaceuticals shares with a ‘Buy' rating and a target price of Rs 2,897, based on 33.9x FY28E earnings.
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Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
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