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Diwali stock picks: SBI Securities lists 11 stocks with up to 22% upside potential. Do you own any? Festive Bets As India prepares to celebrate Diwali next week, investors will welcome Samvat 2083 after a challenging year for equities. SBI Securities expects a gradual recovery after two years of consolidation. The primary catalyst for this recovery, according to the brokerage, will be a pullback in crude oil prices below $90 per barrel. “We remain optimistic about forward outlook and believe domestic equities are likely to deliver better returns on the back of double-digit earnings growth despite of vulnerable external environment, likely conclusion of trade deal between US-India, alongside India’s ongoing export basket diversification, reversal of global AI trade, which should redirect capital flows toward well diversified markets emerging markets like India and likelihood of continued reforms by the government to accelerate economic growth,” it said. Additionally, SBI Securities believes any relief in the taxation pertaining to STT or LTCG would serve as a big sentiment booster for equity markets. Going forward, it believes the sectors from where wealth creators are likely to emerge are auto OEMs and auto ancillaries, capital goods or Engineering, including defence, aerospace engineering, railway safety, power equipment, pharma ancillary, import substitution like CNC machine, BFSI, EMS, recycling, new age platform businesses, pharma - CDMO & chemicals, structural steel tubes, discretionary consumption (hotels, jewellery, alcoholic beverages etc.) and metals or mining. Also read | Diwali 2026: Sensex plunged 10,000 points, Nifty dropped 12% since last Diwali. Will Samvat 2083 bring some relief? Here are SBI Securities’ 11 Diwali stock picks Tata Steel (Target price: Rs 200) SBI Securities noted that Tata Steel is one of the world’s most geographically diversified steel producers, with an annual crude steel capacity of over 36 million tonnes per annum (MTPA). The company’s operations are fully integrated– from mining to the manufacturing and marketing of finished products. Its manufacturing assets are spread across India, Netherlands, UK and Thailand. “We believe the sharp rise in HRC and Rebar prices shall more than offset the recent cost increase for steelmakers like Tata Steel, with full impact of higher realizations to be seen in Q3 FY27,” the brokerage said, keeping a target price of Rs 200 per share for the stock. Also read | Jefferies initiates coverage on NSE with ‘Buy’; here’s why it sees fresh growth potential Indian Hotels Company (Target price: Rs 935) SBI Securities highlighted that Indian Hotels Company (IHCL) is India’s largest hospitality player with a diverse portfolio of 390 operational hotels across 15 countries under iconic brands such as Taj, SeleQtions, Vivanta, and Ginger. The company commands an industry RevPAR premium of over 60%, driven by its strong brand leadership. Under its 'Accelerate 2030' strategy, IHCL targets 700+ hotels and consolidated revenue exceeding Rs 15,000 cr by 2030. The company’s management recently revised its FY27 consolidated revenue growth guidance upward to 15-17%, backed by robust Q2 FY27 performance and favorable upcoming seasonal demand. SBI Securities has set a target price of Rs 935 for the stock. MCX (Target price: Rs 3,633) Multi Commodity Exchange of India (MCX) commands a dominant market share of 99% in the domestic commodity derivatives segment, acting as a direct play on global commodity volatility. The brokerage noted that MCX enjoys strong operating leverage benefits aided by an in-house Commodity Derivatives Platform, expanding EBITDA margins to 72% in FY26. The brokerage expects MCX's revenue, EBITDA, and PAT to grow at a CAGR of 24%, 24.3%, and 25.2% respectively over FY26-FY28, keeping a target price of Rs 3,633. Jyoti CNC (Target price: Rs 1,087) Jyoti CNC Automation is a manufacturer of high-precision CNC machine tools catering to aerospace, automotive, and general engineering sectors. The company holds a strong consolidated order book of Rs 4,848 crore (as of Q1 FY27), providing multi-quarter execution visibility. The company’s management has reaffirmed its consolidated revenue growth guidance of 25% to 30% for FY27 alongside EBITDA margin targets of 25%. Additionally, its ongoing Rs 450 crore capex to expand standalone capacity from 6,000 to 16,000 machines per year will support long-term volume growth. SBI Securities maintains a target price of Rs 1,087 for the stock. Sky Gold (Target price: Rs 1,080) Sky Gold & Diamonds is a leading B2B gold jewellery manufacturer dealing with marquee retail clients like Malabar Gold, Kalyan Jewellers, Joyalukkas, and Reliance Jewels. Under its 'Vision 2030' strategy, the company is shifting toward internally generated growth to achieve a net-debt-free status while targeting revenue of Rs 18,000-19,000 crore by FY30. The company’s management maintained its FY27 revenue guidance at Rs 8,100 crore with expanding margins led by capital efficiency and a higher share of value-added jewellery. SBI Securities projects a PAT CAGR of 48.4% over FY26-FY28 and recommends a target price of Rs 1,080 per share. Genus Power (Target price: Rs 320) As India's leading smart energy measurement solutions provider, Genus Power Infrastructures holds a dominant position in the Advanced Metering Infrastructure Service Provider (AMISP) domain. Operating cash flows and working capital cycles are expected to improve significantly as installed projects go live. SBI Securities has set a target price of Rs 320, noting that the company's Rs 148.2 crore buyback offers additional downside protection. Power Merch Projects (Target price: Rs 2,576) Power Mech Projects is an integrated infrastructure and construction player with capabilities spanning power plant EPC, civil works, O&M services, and mine development and operations (MDO). The company’s total order backlog stood at Rs 56,647 crore as of September, 2026 (with an executable order book of Rs 16,229 cr), giving 30-month revenue visibility. Management targets 20% YoY growth in FY27 consolidated revenue to Rs 7,300 crore, supported by ramped-up mining operations and steady O&M order inflows. The brokerage maintains a target price of Rs 2,576. Centum Electronics (Target price: Rs 4,980) Centum Electronics is a major Indian ESDM player operating across defence, space, aerospace, and industrial sectors. SBI Securities highlights that the company benefits from high entry barriers and long-standing customer relationships exceeding 20 years. The brokerage forecasts a PAT CAGR of 38% over FY26-FY28, assigning a target price of Rs 4,980. Stylam Industries (Target price: Rs 3,662) Stylam Industries manufactures high-pressure and decorative laminates, with exports contributing over 75% of total revenues. The company is expanding capacity via a greenfield facility in Panchkula, featuring the industry's largest press capability, which is projected to generate Rs 250-300 crore in FY27 revenue and up to Rs 600-700 crore at full run-rate. Supported by healthy international demand and sustainable EBITDA margins around 19-20%, SBI Securities expects a PAT CAGR of 26% over FY26-FY28 and recommends a target price of Rs 3,662. Also read | Jio Platforms is becoming more than a telecom company: Dolat Capital Other Diwali picks SBI Securities other diwali picks include Smbhv Steel (Target price: Rs 197) and Lumax Industries (Target price: Rs 6,097). Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
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