Domestic brokerage Motilal Oswal Wealth Management has listed out 10 stocks for investors to buy this Diwali. This comes as investors actively await the special Diwali muhurat trading session, which will be conducted on Indian stock exchanges NSE and BSE on October 21 between 1:45 pm and 2:45 pm.
Celebrated every year on Diwali, the hour-long session marks the beginning of the Hindu financial year, also known as Samvat.
Here is a list of stocks Motilal Oswal Wealth Management had advised investors to invest in this Diwali:
State Bank of India:
The domestic brokerage kept a target price of Rs 1,000 apiece for the shares of State Bank of India (SBI). This implies an upside potential of nearly 13 percent from the stock's previous closing price of Rs 886.95 apiece.
Motilal said that structural tailwinds from government reforms like GST 2.0, income tax reforms and RBI's liquidity infusion will lead to robust credit growth and support profitability for BFSI sector. "SBI stands out for its diversified growth momentum across retail, SME, and corporate segments, supported by a robust credit pipeline and digital transformation," it added.
SBI shares have gained over 1 percent in the past five days, and around 4 percent in the past one month. The stock, which is up around 12 percent in 2025 so far, currently has a P/E ratio of 10. Earlier during the day today, the stock rose around 1 percent to hit a 52-week high of Rs 894.75 apiece.
Mahindra & Mahindra:
Mahindra & Mahindra (M&M) got a target price of Rs 4,091 apiece from Motilal Oswal. This implies an upside potential of around 15 percent from the stock's previous closing price.
The company plans to launch seven ICE SUVs, five BEVs and five LCVs by 2030, beginning from the calendar year 2026, Motilal said. This positions the automaker strongly across both ICE and EV segments.
"M&M is poised to deliver strong earnings growth, driven by rural recovery, & robust launches, further reinforced by improving tractor margins & immediate GST rate pass-through to consumers," it added.
Bharat Electronics:
Motilal Oswal kept a target price of Rs 490 apiece for the shares of Bharat Electronics (BEL). This implies an upside potential of around 19 percent from the stock's previous closing price. The domestic brokerage said that the Indian army's tender worth Rs 30,000 crore for 'Anant Shastra' project, with BEL as its lead integrator, boosts its order book beyond Rs 1 trillion and underscores its leadership in strategic defense programs.
"Positioned strongly under the TPCR 2025 roadmap, it is set to benefit from sustained opportunities across the Army, Navy, and Air Force. BEL offers robust long-term growth visibility, making it a compelling investment in India’s defense modernization journey," it added.
Swiggy:
Swiggy expects its Quick Commerce arm Instamart to achieve profitability sooner, aided by easing competition, moderated dark store expansion and lower acquisition costs, Motilal noted. It further highlighted that the company has strengthened its food delivery outlook, with growth estimates raised to approximately 23 percent for FY26–FY27 (as against the previous estimate of 20 percent), driven by GST-led boost to disposable income & rising discretionary spending.
Motilal has set a target price of Rs 550 apiece for the shares of Swiggy, marking an upside potential of nearly 23 percent from the stock's previous closing price.
Indian Hotels:
The domestic brokerage has set a target price of Rs 880 apiece for the shares of Indian Hotels Company. This marks a 19 percent upside potential from the stock's previous closing price of Rs 738.05 apiece. "The Indian hospitality industry is set for robust growth in FY26, driven by rising ARR, higher occupancy, and strong RevPAR. Increased MICE activity, cultural events, and a vibrant wedding season in 2HFY26 will further boost performance," the brokerage said.
"We expect strong momentum to continue, led by strong room addition pipeline in owned/management hotels (3,770/16,430 rooms) and continued favorable demand-supply dynamics," it added.
Max Financial:
Max Financial is poised for above-industry growth, said Motilal Oswal. The brokerage added that this will be supported by strong bancassurance traction, a resilient agency channel, and a favorable product mix. "VNB margins are improving QoQ, aided by product mix shifts and rising rider penetration," it added.
The latest reforms in the GST structure is set to further boost affordability and insurance penetration, the brokerage said, adding that the company will maintain its premium valuations, driven by new product launches, robust growth trend and improving margin profile.
It kept a target price of Rs 2,000 apiece for the stock, implying an upside potential of nearly 29 percent from the stock’s previous closing price.
Radico Khaitan:
Motilal Oswal said that Radico Khaitan is well-positioned for long-term growth through the aggressive expansion in the premium and luxury spirits segment, leveraging strong brand equity with leading products like 8PM, Magic Moments and Rampur Single Malt.
The company commands an 8 percent market share in the Prestige & Above (P&A) segment, with rising consumer premiumization. New launches like Morpheus Super Premium Whisky & Spirit of Kashmir support future growth, the brokerage added.
Motilal further highlighted Radico’s acquisition of 47.5 percent stake in D’YAVOL Spirits B.V, “aiming to take India to the World by building bottled-in-origin luxury brands, targeting Tequila and other niche categories.”
The brokerage kept a target price of nearly 13 percent from the stock’s previous closing price of Rs 2,997.9 apiece.
Delhivery:
Delhivery has a market share of more than 20 percent in the express logistics space, and has rapidly increased presence in the PTL segment after the acquisition of Spoton Logistics in 2021, said Motilal. “The recent Rs 14 billion Ecom Express acquisition enhances Delhivery’s rural coverage, strengthens network density, and drives cost synergies. It is poised for sustained growth, supported by a rising user base, new category launches, and expanding e-commerce,” the brokerage said.
It has kept a target price of Rs 540 apiece for the stock, implying an upside potential of around 21 percent from the stock’s previous closing price of Rs 446.80 apiece.
LT Foods:
LT Foods is well-positioned for long-term growth, leveraging its strong brand equity with Daawat and Royal, exporting to 80+ countries and commanding approximately 30 percent shares in India and 50 percent market share in US basmati market, Motilal said.
“Growth drivers include expanding volumes in Basmati and Specialty Rice and increasing focus on high-margin O&CH segments. Exports (66% of revenue of FY25) offer better realizations and margins vs domestic market, making the business structurally export-led,” it added.
The brokerage kept a target price of Rs 560 apiece for the stock, implying an upside potential of more than 35 percent from the stock’s previous closing price.
VIP Industries:
Motilal said that VIP Industries had outpaced industry growth, delivering a revenue CAGR of 19 percent over FY22–25. “With a scalable, profitable digital engine complementing its offline leadership, VIP is well-placed to capture long-term market share gains. We expect VIP to deliver industry-beating growth, by leveraging the integrated strategy of premiumization, digital scale and margin accretive supply chain,” it added.
The domestic brokerage kept a target price of Rs 530 apiece for the stock, implying an upside potential of around 24 percent from the stock’s previous closing price.
'Samvat 2082 begins on a positive note'
Motilal said that Samvat 2082 is beginning on a positive note, thanks to a combination of fiscal and monetary tailwinds. "The RBI has cut the repo rate by 100 bps and CRR by 150 bps, together with several measures, injecting much-needed liquidity into the system. This, coupled with the income tax relief of ₹1 lakh crore, would aid demand revival and improved potential for corporate earnings. Inflation remains comfortably low while the GST 2.0 has simplified rates and revived consumer sentiment. We believe this marks the beginning of a turnaround in India's domestic growth momentum, with significant pick up in consumption paving the way for a robust revival in the private capex cycle. This, along with the improving earnings trajectory, should lend support to Indian equities," it said.
"We perceive H2FY26 to mark the crossing over from a subdued low-single-digit earnings growth to a more sustainable double-digit earnings growth. Nifty earnings growth is expected at a healthy 8%/16% YoY in FY26/FY27 as compared to 1% in FY25. Also, Nifty valuations are reasonable at about 20x FY26 earnings, close to long term averages. However, mid and smallcap trades at a slight premium; thus one needs to follow a selective approach in stock picking. For Samvat 2082, we expect domestic cyclicals and structural growth themes to do well. We are positive on sectors such as BFSI and Capital Markets, Consumption, Manufacturing (EMS/Defence/Industrial) and Digital," it added.
"Our last year's Diwali picks have done well, with stocks such as Eternal (+37%), Amber Enterprises (+33%), ICICI Bank (+11%), L&T (+10%) making significant gains, while the overall portfolio generated 4.8% returns (including dividends) - outperforming Nifty's gain of 3.6% over Samvat 2081," it further said.
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Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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