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SBI Securities has come out with a list of 11 stocks it is recommending investors to buy as part of its Diwali stock picks for Samvat 2083. The stocks in this list include names like Tata Steel, Indian Hotels, MCX, Jyoti CNC, Sky Gold, Genus Power, Power Mech Projects, Centum Electronics, Stylam Industries, Sambhv Steel and Lumax Industries. On average, SBI Securities sees a potential upside between 15% to 20% on these stocks. Here's a look at the list in greater detail: Tata Steel | SBI Securities has ascribed a price target of ₹200 for the Tata Group stock for Samvat 2083, indicating an upside potential of 17%. It expects Tata Steel's revenue to grow at a Compounded Annual Growth Rate (CAGR) of 8.3% over financial year 2026-2028, while its EBITDA and PAT are likely to grow at a 17.6% CAGR and 36% CAGR respectively. Favourable HRC prices could more than offset the increase in costs, according to SBI Securities, who highlights a slowdown in steel demand in Indian and Europe, a downturn in HRC prices, regulatory and environmental concerns as some of the key risks. Indian Hotels | Another Tata Group company that SBI Securities is betting on and expects to see a target of ₹935 for Samvat 2083, implying an upside potential of 15% from current levels. A strong brand and premium pricing are a key differentiator for Indian Hotels, according to SBI Securities. The firm expects Indian Hotels to report a revenue CAGR of 14.6%, EBITDA CAGR of 17.6% and PAT CAGR of 10.1% over financial year 2026-2028. Healthy operating momentum, asset-light expansion and strong balance sheet are some other key positives. Demand slowdown, slower-than-expected growth in ARR and RevPAR, delay in new hotel openings are some key risks. MCX | SBI Securities expects this exchange to see a price target of ₹3,633 for Samvat 2083, indicating an upside potential of 14% from current levels. Calling MCX a direct play on global commodity volatility, SBI Securities said that ADT momentum will remain healthy driven by volatility in the commodity basket, particularly in the energy and bullion segment, along with an increase in participation. MCX can see a revenue CAGR of 24%, EBITDA CAGR of 24.3% and PAT CAGR of 25.2% over financial year 2026-2028, according to SBI Securities, who cites moderation in ADT and regulatory hurdles as a key risk for the stock. Jyoti CNC Automation | Infrastructure is a key theme in SBI Securities' stock picks list and Jyoti CNC has been ascribed a price target of ₹1,087, which implies an upside potential of 17.4% from current levels. The management has reiterated that its consolidated revenue will grow between 25% and 30% this financial year, while margins will remain near 25% for the year. SBI Securities anticipates a revenue CAGR of 30%, EBITDA CAGR of 32% and a PAT CAGR of 34% over financial year 2026-2028. Higher dependence on private capex, lengthy product approval process and regulatory hurdles are highlighted as some of the key risks. Sky Gold | SBI Securities has ascribed a price target of ₹1,080 on the stock, which also happens to be its 52-week high, and implies a 15.5% upside from current levels. Improvement in its export mix, upgrade to its product mix, expansion of its product categories are some of the key medium-term growth triggers for the company. Advance gold may contribute to nearly 30% of the volumes by financial year 2030, from 11.5% in financial year 2026. SBI Securities sees revenue CAGR of 37.1%, EBITDA CAGR of 45.9% and PAT CAGR of 48.4% over financial year 2026-2028. Valuations, as per the firm, are reasonable, given the strong growth guidance and improved ROCE outlook, supported by margin expansion. Customer concentration, intensive working capital, high competition and gold price volatility are some key risk. Genus Power | SBI Securities has bet on this comprehensive metering solutions provider for a target of ₹320, indicating a 19.4% upside from current levels. It believes that the smart metering opportunity remains substantial, with 31 to 32 crore electricity meters expected to transition to smart meters and nearly 8-9 crore of them expected to be tendered this financial year. The gas metering opportunity in India is also estimated to be about ₹35,000 crore to ₹36,000 crore over the next 3-4 years, while the management also sees ₹500 crore worth of international business potential over the same time frame. The company also has a robust order book. SBI Securities expects a revenue CAGR of 18.6%, EBITDA CAGR of 15.4% and PAT CAGR of 10.6% over financial year 2026-2028. Calling valuations compelling, the firm said the share buyback announced will act as a cushion in the current volatile environment. Project execution delays, dependency on government tenders, delay on improving working capital cycle are some key risks. Power Mech Projects | The ₹2,576 price target ascribed by SBI Securities implies an upside potential of 18.9% from current levels. Strong growth across segments, order book strength are some of the key positives for the stock. The management sees topline of ₹7,300 crore this financial year, implying growth of 20% YoY and a 12.5% EBITDA margin. SBI Securities sees revenue CAGR of 21%, EBITDA CAGR of 24% and PAT CAGR of 29% over financial year 2026-2028. At 15.6 times one-year forward earnings, SBI Securities called the stock's valuations attractive. Long execution period of MDO projects, client concentration and availability of skilled man power are key risks. Centum Electronics | The stock has among the highest upside potentials in this list as SBI Securities' target of ₹4,980 expects the stock to rise 22% in Samvat 2083. Presence across India's space and defence programs, long-term customer relationships and high barriers to entry are some key positives for the stock. The company is also a single-source supplier for nearly 70% of its products, while nearly 30% of its topline comes from customer relationships exceeding 20-plus years. Revenue mix will also improve towards high margin businesses in the fuure, according to SBI Securities, who sees a revenue CAGR of 26%, EBITDA CAGR of 35% and PAT CAGR of 38% over financial year 2026-2028. Stylam Industries | SBI Securities has ascribed a price target of ₹3,662 for the stock, implying an upside potential of 14.2% from current levels. The laminates industry outlook remains positive, Stylam expects the new plant to generate at least ₹250 crore to ₹300 crore in topline for financial year 2027 at 25% to 30% utilization with margins sustaining around the 19% to 20% mark. Domestic revenue will improve but SBI Securities expects exports to remain the primary revenue contributor. The firm sees a revenue CAGR of 24%, EBITDA CAGR of 25% and a PAT CAGR of 26% over financial year 2026-2028. Global supply chain disruptions, geopolitical tensions, material cost fluctuations, and cross-currency headwinds are some key risks. Sambhv Steel Tubes | SBI Securities has ascribed a price target of ₹197 on the stock, indicating an upside potential of 16.6% on the stock. The management remains confident of achieving 10-15% revenue and EBITDA growth with a stainless steel EBITDA guidance maintained at ₹15,000 - ₹16,000 per tonne. Revenue CAGR is seen at 44.9%, EBITDA CAGR is seen at 45.9%, while PAT CAGR is seen at 34.8% over financial year 2026-2028. Delay in project commissioning, downturn in steel prices, slowdown in steel and stainless steel demand are some key risks. Lumax Industries | SBI Securities has ascribed a price target of ₹6,097 on the stock, indicating an upside potential of 20.7% from current levels. Increasing LED order book and content per vehicle, strong OEM relationships, localisation-led margin expansions are some key positives for the stock. SBI Securities sees a revenue CAGR of 18%, EBITDA CAGR of 21% and PAT CAGR of 30% over financial year 2026-2028. OEM Demand slowdown, supply chain disruptions and commodity cost inflation are some key risks.
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