HDFC Securities’ Diwali 2025 Picks: Top 10 Stocks To Buy Before Muhurat Trading For Special Samvat 2082

HDFC Securities has released its much-anticipated MoneyFest Diwali 2025 portfolio, which includes 10 high-conviction Diwali stock picks that are expected to generate substantial returns over the course of the next year, as investors prepare for Muhurat Trading and the beginning of Samvat 2082. These companies, which cover power, telecom, financials, and consumption themes, range from industry titans like Larsen & Toubro, Bharti Airtel, and JSW Energy to emerging names like Associated Alcohols, Happy Forgings, and Northern Arc Capital.

Diwali Stock Picks 2025

"We expect markets to deliver selective, stock-specific returns as valuations remain stretched in pockets despite a broader market correction. We maintain a predilection for domestic consumption-oriented businesses, financials, and the power and engineering sectors. Our meticulously constructed portfolio of ten stocks-comprising four established mega-caps and six emerging companies-presents compelling investment opportunities underpinned by robust fundamentals and attractive valuations, positioned to generate superior returns. Following a turbulent year, investors may anticipate a more stable environment that rewards disciplined, bottom-up stock selection," said HDFC Securities in a note.

Associated Alcohols & Breweries

Buy range: Rs 1,008-1,035, Add on Dips: Rs 918, Red flag: Rs 807, Target: Rs 1,182, Duration: Till Next Diwali

"Over the past decade, AABL has delivered robust revenue/EBITDA/PAT CAGR of 14%/15%/24%, generating attractive return ratios. The company's gross margins have been under pressure over the last couple of years owing to a sharp increase in raw material prices. However, the company has been able to mitigate this to some extent by passing on the prices to its customers, given its long-term relationships with them. Given the correction in RM prices in recent quarters, coupled with improving realisations, this is expected to lead to gross margin improvement. We recommend investors to buy the stock with a target price of Rs 1,182 (20x FY27E EPS) till next Diwali," said the research analysts of HDFC Securities.

"With growing alcohol consumption, foray into new geographies and move towards premiumization, management expects the premium line of products to grow at 18%-20%, as we advance. Resultantly, IMFL (Proprietary) is likely to grow in the range of 15%-18% and IMFL (Licensed) is expected to register 12%-15% growth. Margins are expected to sustain in the mid-double digits. At current levels, we believe that the company is attractively priced," they further added.

Bharti Airtel

Buy range: Rs 1,935-1,985, Add on dips: Rs 1,787, Red Flag: Rs 1,643, Target: Rs 2,244, Duration: Till Next Diwali

"BAL has established its market position in the Indian telecom industry, supported by an attractive market structure featuring two strong players and two weaker players, along with favorable regulations. The company reported a consolidated revenue/EBITDA/PAT CAGR of approx. ~15%/ 14%/17% over FY25-27E. We recommend investors to buy the stock with a target price of Rs 2,244 (35.5x FY27E EPS) till next Diwali," the brokerage said in a note.

Happy Forgings

Buy range: Rs 910-944, Add on dips: Rs 848, Red flag: Rs 729, Target: Rs 1,083, Duration: Till Next Diwali

"Given HFL's expanding scale of operations and an ample addressable global opportunity, we believe it has significant room for growth. We recommend investors to buy the stock with a target price of Rs 1,083 (33x FY27E EPS) till next Diwali," said HDFC Securities.

IDFC First Bank

Buy range: Rs 73-75, Add on dips: Rs 65, Red flag: Rs 59, Target: Rs 88.5, Duration: Till Next Diwali

"IDFCFB continues to improve on its performance driven by its retailisation strategy with wholesale book share declining to 19%. The new retail products would provide strong support to NIMs and reduction in borrowing and credit costs would aid PAT expansion. We recommend investors to buy the stock with a target price of Rs 88.5 (1.5x FY27E P/B) till next Diwali," commented the research analysts of HDFC Securities.

JSW Energy

Buy range: Rs 538-555, Add on dips: Rs 487, Red flag: Rs 428, Target: Rs 639, Duration: Till Next Diwali

"The management remains focused on achieving its EBITDA targets and ensuring the timely commissioning of upcoming projects, while maintaining net debt under prudent levels. This balanced approach highlights JSW Energy's commitment to sustained growth and financial stability in the future. We expect Revenue/EBITDA/PAT to grow at 49.3%/62.3%,26.4% CAGR over FY25-FY27E. We recommend investors to buy the stock with a target price of Rs 639 (36x FY27E EPS) till next Diwali," HDFC Securities said in a report.

Larsen & Toubro

Buy range: Rs 3,760-3,818, Add on dips: Rs 3,484, Red flag: Rs 3,190, Target: Rs 4,243, Duration: Till Next Diwali

"L&T is set for strong growth, backed by a robust Rs 6.1 lakh crore order book and a healthy pipeline of large domestic and international projects. Its business mix has evolved, with international orders, especially from the Middle East, now forming nearly half the backlog. We remain positive on the stock given its solid balance sheet, improving infrastructure margins, better subsidiary performance, and rising public capex in the energy transition. We expect a consolidated revenue/EBITDA/PAT CAGR of approx. 17%/21%/26% over FY25-27E. We recommend investors to buy the stock with a target price of Rs 4,243 (25x FY27E EPS) till next Diwali," said the brokerage.

MSTC

Buy range: Rs 525-548, Add on dips: Rs 463, Red flag: Rs 418, Target: Rs 673, Duration: Till Next Diwali

"MSTC's nearly monopolistic status which places it in an attractive position in the emerging area of vehicle scrapping. The company reported a consolidated revenue/EBITDA/PAT CAGR of approx. 14%/12%/20% over FY25-27E. We recommend investors to buy the stock with a target price of Rs 673 (17x FY27E EPS) till next Diwali," commented the brokerage.

Northern Arc Capital

Buy range: Rs 265-277, Add on dips: Rs 244.5, Red flag: Rs 209.5, Target: Rs 333.5, Duration: Till Next Diwali

"We recommend investors to buy the stock with a target price of Rs 333.5(1.25x FY27E P/B) till next Diwali," HDFC Securities commented.

Pidilite Industries

Buy range: Rs 1,500-1,550, Add on dips: Rs 1,401, Red flag: Rs 1,289, Target: Rs 1,717, Duration: Till Next Diwali

"The company has achieved 12.5% CAGR volume growth over the last 4 years on the back of resilient domestic demand across sectors, higher retail sales backed by strong brand recall in the domestic market, rising new construction activities following a new real estate up-cycle and an ever-growing distribution reach. We believe these factors will contribute to double-digit volume growth for the company, and expect it to register revenue growth of 11.2% and PAT growth of 13.5% CAGR between FY25-27E. We recommend investors to buy the stock with a target price of Rs 1,717 (65.5x FY27E EPS) till next Diwali," as per HDFC Sec.

Sheela Foam

Buy range: Rs 678-698, Add on dips: Rs 608, Red flag: Rs 539, Target: Rs 837, Duration: Till Next Diwali

"We expect the company to register Revenue/EBITDA/PAT CAGR of 9%/26%/39% over FY25-28E. It would be driven by synergy benefits from the acquisition, change in business mix and stable RM prices. The company has a clear focus on improving its margin profile and not chasing growth at the expense of profitability. We recommend investors to buy the stock with a target price of Rs 837 (34.5x FY28E EPS) till next Diwali," according to HDFC Sec.

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