Diwali stock picks 2025: MOSL’s Siddhartha Khemka puts the spotlight on three cracker stocks

MOSL's three dhamakedar picks for Samvat 2082

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26 Aug, 2025 12:21

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After a year of muted returns on the benchmark indices, market experts are hoping that Samvat 2082 could finally bring the sparkle back.

A more pronounced earnings recovery, expectations of a RBI rate cut, and hopes of further reforms may fuel optimism, according to Siddhartha Khemka, Head of Research (Wealth Management) at Motilal Oswal Financial Services, who believes that equities are poised to deliver 15-20% returns next Samvat, as valuations have moderated after a year of time correction.

In an interview with Moneycontrol, Khemka shared three festive stock ideas that he believes can dazzle investors’ portfolio.

Swiggy: The Anar That Spreads Light All around

First on Khemka’s list is Swiggy, with a one-year target price of Rs 550 (potential 25% upside), promising to be a ‘fountain cracker’ lighting up returns.

“The competition in quick commerce is easing, discounting intensity has come down, and profitability is on the horizon,” Siddhartha Khemka said. For Swiggy, 10-minute deliveries and platform fees have helped the business, besides anticipation that Instamart may break even by the third quarter of FY26.

When asked what would Swiggy be if it were to be a Diwali firecracker, Khemka said, “An Anar — spreading light everywhere!” What gives Swiggy an edge over Eternal (Zomato) is a big valuation gap and continuous innovation, according to Siddhartha Khemka. The company is more willing to experiment and take risks, giving it an edge and making Motilal Oswal more bullish on its prospects.

Axis Max Life — The Fuljhari of the Market

Axis Max Life (formerly Max Financial) is another one of MOSL's dhamakedar pick with a target of Rs 2,000 (24% upside). Khemka said he sees strong business tailwinds from the Axis Bank partnership, helping its margins, with the reverse merger potentially unlocking value.
“The valuation discount is unwarranted. Growth engines from bancassurance and agency models, coupled with rising VNB margins, make it a solid play,” Siddhartha Khemka said.

Why is it a Fuljhari? "It's safe, bright and for everyone,” said Khemka. The biggest growth driver for the insurer, according to the brokerage, is Axis Bank’s distribution muscle. For Siddhartha Khemka, that implies scope for further gains, “Picture abhi baaki hai.”

Indian Hotels — The Kaju Katli of Hospitality

Indian Hotels, with an 18–20% earnings growth forecast for FY27 and a target price of Rs 880 is another one of the dhamakedar Diwali picks for MOSL.

“Post-COVID, domestic travel and MICE events are driving demand. The asset-light model and expanding room pipeline make Indian Hotels a consistent compounder,” Siddhartha Khemka said, calling it the Kaju Katli of hospitality, as everyone’s favourite, with its focus on customer experience and profitable growth.

Bonus Pick: The Atom Bomb - LG Electronics India

LG Electronics India can be called the atom bomb after a dazzling debut that saw the stock rise 50% on listing day, and according to Siddhartha Khemka, there may be more to come. “We see further upside to Rs 1,800,” Khemka said, calling it a beneficiary of strong consumer demand, premiumisation and manufacturing tailwinds.

The Big Theme for Samvat 2082

In Khemka’s view, the upcoming Samvat could see domestic theme play out, with “consumption and manufacturing” driving returns. For investors looking for longer term ideas for the next year, these names promise hope of earnings growth and returns. After a year of time correction and steep valuations in equities, Samvat 2082 is ushering in a careful optimism among investors.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.