Diwali is more than just a festival of lights in India—it’s a time when many people think about new beginnings, prosperity, and smart financial moves. One popular tradition during Diwali is Muhurat trading, a special one-hour stock market session on the day of Laxmi Puja. This year, in 2025, Muhurat trading falls on November 1, and it’s seen as an auspicious time to invest. People believe that buying stocks during this window can bring good luck and strong returns over the coming year, known as Samvat 2082 in the Hindu calendar.
Brokerages like HDFC Securities often release their Diwali picks around this time. These are stocks they recommend for long-term growth, usually over the next 12 months until the next Diwali. HDFC Securities focuses on companies with solid fundamentals, meaning they have strong business models, good management, and potential to grow even if the market faces ups and downs. This year, their list includes a mix of big, established companies (mega-caps) and smaller, emerging ones. They picked sectors like telecom, energy, banking, engineering, and consumer goods, betting on India’s growing economy, rising consumer spending, and infrastructure boom.
Why these sectors? India’s economy is expanding fast, with more people earning higher incomes and spending on homes, cars, and daily needs. For example, the government’s push for renewable energy and better roads is helping companies in power and infrastructure. At the same time, banks are lending more to support this growth, and consumer brands are seeing higher sales from urban and rural markets alike. HDFC Securities notes that while the overall market might see some corrections due to high valuations in certain areas, these selected stocks offer value—meaning they’re not too expensive compared to their earnings potential.
In their report, HDFC Securities highlights four mega-caps and six emerging companies. They provide buy ranges (the price at which to enter), target prices (where they think the stock could reach), and upside potential (how much it could gain). The average upside across the list is around 18-20%, which is solid for a one-year horizon. But remember, investing always comes with risks like market volatility, economic slowdowns, or company-specific issues. It’s smart to do your own research or consult a financial advisor.
Let’s dive into the top 10 picks, starting with some background on each company, why HDFC Securities likes them, real-world examples of their success, and what the future might hold. I’ll keep it straightforward so anyone can understand.
HDFC Securities Diwali 2025 Stock Picks
Associated Alcohols & Breweries
Associated Alcohols & Breweries is a player in the Indian Made Foreign Liquor (IMFL) space, focusing on products like whiskey, gin, and brandy. Based in Madhya Pradesh, the company has been around since 1989 and has grown by making its own ingredients (backward integration) and expanding into new markets. They produce popular brands like Central Province Whiskey and now premium ones like Nicobar Gin and Hillfort Blended Malt Whisky.
HDFC Securities recommends buying in the range of Rs 1008 to Rs 1038, with a target of Rs 1182, offering about 16% upside. The key reason is their push for premium products, which fetch higher prices and better profits. For instance, Nicobar Gin has done well in Madhya Pradesh and is now in other states, showing how innovation drives sales. They’re also launching a ready-to-drink brandy and tequila, tapping into the growing demand for convenient, high-end drinks among young urban consumers.
In recent years, the company has seen superior growth. During the pandemic, when many businesses struggled, Associated Alcohols ramped up production of sanitizers using their alcohol base, which boosted revenues temporarily. Now, with India’s alcohol market expected to grow at 7-8% annually due to rising disposable incomes, they’re well-positioned. Operational efficiencies, like controlling costs through in-house manufacturing, help margins. However, risks include strict regulations on alcohol sales and competition from bigger players like United Spirits. Overall, this stock is a bet on India’s premiumization trend—people shifting from cheap local drinks to branded ones.
Bharti Airtel
Bharti Airtel is one of India’s biggest telecom companies, providing mobile services, broadband, and digital TV to millions. Founded in 1995 by Sunil Mittal, it has grown into a global player with operations in Africa too. Airtel is known for its strong network coverage and innovative services like Airtel Xstream for streaming.
The brokerage suggests buying between Rs 1008 and Rs 1038, aiming for Rs 1182, which could give 16% gains. What stands out is Airtel’s high Average Revenue Per User (ARPU), at Rs 250 in the first quarter of FY26—the best in the industry. They expect tariff hikes soon, which could push ARPU to Rs 300, leading to better profits and cash flow for investments like 5G rollout.
A great example is how Airtel bounced back after tough competition from Jio. By focusing on quality service and adding features like unlimited data plans, they retained customers. In FY25-27, HDFC Securities predicts 15% revenue growth, 14% EBITDA, and 17% profit growth. The telecom sector in India is stabilizing with fewer players, making it easier for leaders like Airtel to thrive. But challenges like high spectrum costs and regulatory changes could pop up. This pick is ideal for those betting on digital India, where more people use mobiles for everything from shopping to education.
Happy Forgings
Happy Forgings makes forged and machined parts for vehicles and industrial equipment. Started in 1979 in Punjab, they’ve expanded from basic forgings to complex components for trucks, tractors, and cars. Their clients include big names like Ashok Leyland and John Deere.
Buy in Rs 910-944 range, target Rs 1083, for 17% upside. The rationale is their diversification across segments like commercial vehicles and passenger cars. In FY25, they won Rs 1600 crore in orders for passenger vehicles and industrials, to be delivered over 5-8 years, peaking at Rs 250 crore annually. They’re investing Rs 650 crore in new facilities for heavyweight parts.
For example, they added a 6,300-tonne press in FY25, boosting capacity to 57,000 metric tonnes. This helps meet demand from India’s auto sector, which is growing with electric vehicles and exports. The forging industry benefits from “Make in India,” where local manufacturing replaces imports. Risks include raw material price fluctuations like steel. But with strong order books, Happy Forgings looks set for steady growth in a booming manufacturing landscape.
IDFC First Bank
IDFC First Bank is a private bank formed in 2018 from the merger of IDFC Bank and Capital First. It focuses on retail lending like personal loans, credit cards, and small business finance, with a tech-driven approach for easy banking.
Recommended buy at Rs 73-75, target Rs 88.50, upside 20%. Management expects net interest margins (NIMs) to stabilize at 5.7-5.8% soon, thanks to better loan pricing. They’re cutting costs to below 65% cost-to-income ratio by FY27, showing efficiency.
An example: During high growth phases, expenses rose, but now with 23% business growth versus 11% expense increase, they’re optimizing. Asset quality is good, except for some microfinance stress, but overall GNPA is low at 1.1%. By reducing wholesale loans to 19%, they’re focusing on profitable retail. India’s banking sector is expanding with digital payments and formal credit, benefiting banks like this. Risks? Interest rate changes or economic dips affecting repayments. Still, it’s a solid pick for financial sector growth.
JSW Energy
JSW Energy, part of the JSW Group, generates power from thermal, hydro, solar, and wind sources. Founded in 1994, they’ve scaled up quickly, aiming for green energy.
Buy range Rs 538-555, target Rs 639, 17% upside. They hit 20 GW capacity early and now target 30 GW by 2030, showing execution strength. With Rs 1,30,000 crore capex planned, yet maintaining good credit ratings, they’re financially sound.
Example: Their diversified portfolio includes renewable projects like solar parks in Rajasthan, helping meet India’s 500 GW renewable goal by 2030. Expected growth: 49% revenue, 62% EBITDA over FY25-27. The power sector is hot with rising demand from industries and EVs. Risks include fuel costs or delays in projects. But JSW’s focus on sustainability makes it a future-proof choice.
Larsen & Toubro (L&T)
Larsen & Toubro, or L&T, is India’s engineering giant, building everything from bridges to submarines. Established in 1938 by two Danish engineers, it’s now a conglomerate with global reach.
Buy at Rs 3760-3818, target Rs 4243, 12% upside. Their order book is massive at Rs 6.1 lakh crore, with a Rs 14.8 lakh crore pipeline in infra, energy, and defense.
For instance, they’re executing mega projects in the Middle East, like oil refineries, offsetting slower domestic growth. Management guides 10% order growth and 15% revenue rise in FY26. India’s infra push, like highways and metros, fuels this. Risks: Project delays or geopolitical issues. L&T’s diversity across sectors ensures resilience.
MSTC Ltd
MSTC is a government-owned company under the Ministry of Steel, specializing in e-auctions for scrap, minerals, and vehicles. Started in 1964, it’s the go-to for transparent online sales.
Buy Rs 525-548, target Rs 673, 25% upside—the highest on the list. As a near-monopoly in vehicle scrapping, they’re set for growth with new policies promoting old car recycling.
Example: They handle auctions for PSUs like Coal India, ensuring fair prices. Expected 14% revenue, 12% EBITDA growth over FY25-27. Government support and digital push help. Risks: Policy changes. But in India’s e-governance era, MSTC is key.
Northern Arc Capital
Northern Arc Capital lends to underserved sectors like microfinance and small businesses, using tech for efficiency. Listed recently, they also manage funds and placements.
Buy Rs 265-277, target Rs 333.50, 23% upside. Their multi-channel model generates diverse income, with low bad loans (GNPA 1.1%) due to strict write-offs.
For example, they partner with fintechs for quick loans to farmers or women entrepreneurs. India’s financial inclusion drive boosts this. Risks: Credit defaults in tough times. But conservative policies make them reliable.
Pidilite Industries
Pidilite is famous for Fevicol glue, but they make adhesives, sealants, and art materials. Founded in 1959, their brands like Dr. Fixit are household names.
Buy Rs 1500-1550, target Rs 1717, 13% upside. Strong balance sheet and innovation, like expanding globally, provide visibility.
Example: 12.5% volume growth over four years from real estate boom and distribution reach. Expected 11% revenue, 13.5% PAT growth. Consumer shift to branded products helps. Risks: Raw material costs. Pidilite’s market leadership shines.
Sheela Foam
Sheela Foam makes mattresses and foam products under Sleepwell brand. Acquired Kurlon in 2023, boosting market share to 30% in India, 40% in Australia.
Buy Rs 678-698, target Rs 837, 22% upside. Synergies from acquisition, like cost savings, drive margins.
Example: Urbanization means more demand for comfy beds; per capita income rise helps. Expected 9% revenue, 26% EBITDA growth. Focus on profitability over volume. Risks: Competition. But lifestyle changes favor them.
In conclusion, these picks from HDFC Securities offer a balanced portfolio for Samvat 2082. Whether you’re new to investing or experienced, consider diversifying across these. Muhurat trading is a fun start, but long-term holding is key. Always track news and earnings. Happy investing and Happy Diwali!
(The views content, and recommendations expressed in this post are of leading stock market experts and do not represent those of Moneyexcel.com. Please consult your financial adviser before taking any position in the stocks mentioned)
