Diwali 2025 Picks: 12 Stocks That Could Deliver Huge Returns This Samvat 2082; Buy Before Muhurat Trading?

As Diwali 2025 draws near, JM Financial Services (JMFS) has released its highly anticipated list of the top Diwali stocks. This list consists of a carefully selected portfolio of 12 high-potential companies from major sectors, including consumer durables, banking, healthcare, metals, and automobiles.

High-quality stocks with potential upsides of up to 31% are identified in the analysis, including Maruti Suzuki, Fiem Industries, Axis Bank, Apollo Hospitals, Lloyds Metals, and Eureka Forbes. In Samvat 2082, these fundamentally sound stocks are expected to provide significant returns. Ahead of Muhurat trading in 2025, these JMFS recommendations can present a promising chance for investors seeking to build long-term wealth this Diwali.

Diwali Stock Picks 2025

Here are the 12 stocks that have been recommended as top Diwali picks by JM Financial Services.

Maruti Suzuki India

"Maruti is our top pick in auto space and we recommend Buy with target price of Rs19,000 (valued at 28x FY27E EPS). Key Risk: 1) Increase in competitive intensity could impact volume/margin, 2) Supply disruption risk of critical inputs, 3) Weak response to new PV launches, 4) Weaker-than expected exports growth given geopolitical uncertainties," said JM Financial Services.

Fiem Industries

"We recommend Buy on Fiem with target price of Rs2,400 as valuation of 16x FY27E EPS seems attractive given its earning is expected to clock a robust 20-22% CAGR over FY2527E along with RoE of 21%. Key Risk: 1) High reliance on few key clients poses significant revenue concentration risk. 2) Slowdown in ICE/ EV 2W sales," the brokerage said in a note.

Axis Bank

"We expect loan CAGR of ~12% during FY25-27E with avg. RoE of ~14% during FY26/27E. The stock trades at relatively inexpensive valuation of ~1.4x FY27E BVPS. Maintain BUY with a target price of Rs1,330, valuing the core bank at 1.7x FY27E BVPS. Key Risk: Higher than expected NIM margin decline," as per the brokerage.

IIFL Finance

"In our base case assumption of valuation converging to average long-term P/BV multiple of 1.7x and book value of Rs360 (based on Bloomberg consensus estimate) would give fair value of Rs600. Key Risk: Continuation of higher-than-expected Credit cost," said JM Financial Services.

L&T Finance

"We expect LTF ROAs to structurally move above 2.7% due to better metrics of retail business, we value LTF at 2.2x FY28E P/BV, giving it a TP of INR 300/Share. Key Risk: Resurfacing of asset quality concern," the brokerage commented.

Apollo Hospitals Enterprise

"We value Apollo Hospitals on a sum-of-the-parts (SOTP) basis and deriving a target price of Rs 9000. Key Risk: 1) Slower-than-anticipated expansion of bed capacity or a delayed ramp-up in occupancy. 2) Regulatory risks driven by increasing public concern over healthcare inflation," stated JM Financial Services.

Lloyds Metals & Energy

"We Reiterate BUY on Lloyds Metals with target price of Rs1,680 (6.5x FY28E EBITDA for core iron ore + MDO business valued at 7x FY28E EV/EBITDA + CWIP of Rs11,000 crore). Key Risk: 1) Decline in Iron ore prices 2 Delay in ramp up of volumes. 3) Delay in commissioning of key downstream projects," commented JM Financial Services.

Ratnamani Metals & Tubes

"We recommend Buy on Ratnamani Metals with a target price of Rs2900 (valued at 25x FY28E EPS). Key Risk: 1) Postponement in project execution might lead to lower demand for the company's products. 2) Recessionary headwinds across global markets could impact the company's business prospects," JM Financial Services said in a report.

Brainbees Solutions

"We assign a Buy rating to the stock with a target price of Rs 460, valuing India Multichannel/ GlobalBees Brands/Others at 35x/30x/20x FY27E Pre-Ind AS adjusted EBITDA, respectively, while applying a 1.5x FY27E sales multiple to the International segment. Key Risk: 1) COCO store expansion may cannibalize existing footprint, 2) Execution challenges in the International segment, and 3) Increased competition from QC players or Meesho could erode market share," commented JM Financial Services.

Anant Raj

"The company plans to expand data center capacity from 28 MW to 63 MW by FY27 and 307 MW by FY32, targeting Rs. 1,200 crore and Rs.9,000 crore revenue, driven by digital growth and supportive policies. Key Risk: 1) Delay in launch of real estate project could impact valuation, 2) competition in data center resulting into lower profitability," the brokerage added.

Eureka Forbes

"The company intends to improve its financial performance mainly through sustained volume-led growth, higher spend in growth initiatives like advertising and promotion, and improving in-store and digital presence. The company plans to expand its margin through operating leverage, a better product mix, and greater OpEx efficiencies (shared services, process automation, logistics/IT cost). The company is expected to clock a PAT CAGR of 36% over FY2025-2027E. The stock trades at 36x FY2027 EPS. Key Risk: 1) Competition from domestic and international brands 2) Availability of counterfeit products. 3) Inability to provide satisfactory after-sales service, as per the brokerage.

Astral

"The company is expected clock a Revenue/PAT CAGR of 13%/18% over FY25-28E. We value the business at t 55x Sep'27E EPS (~10% below 5-year average) to arrive at a price target of Rs 1600. The valuation reflects the company's superior margins in the pipes segment, potential for further margin expansion through backward integration, strong growth momentum in the adhesives business, and a solid balance sheet. Key Risk: 1) Rising competitive intensity in CPVC pipes, 2) Execution risk in CPVC resin manufacturing 3) Slower ramp-up in adjacencies, as per JM Financial Services.

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