Diwali stocks to buy: With Diwali around the corner, investors are looking for stocks that could offer attractive returns over the medium to long term. Brokerage firm JM Financial Services (JMFS), in its Diwali Picks 2026 report dated October 29, has recommended 10 stocks across sectors, including banking, defence, power, telecom, pharmaceuticals, metals, new-age businesses and capital goods.
| Stock | CMP (Rs) | Target Price (Rs) | Upside |
| ICICI Bank | 1,374 | 1,710 | 24% |
| Bharat Electronics | 364 | 485 | 33% |
| Power Grid | 251 | 290 | 15% |
| Sterlite Technologies | 879 | 1,020 | 16% |
| Gravita India | 1,343 | 1,800 | 34% |
| Emcure Pharmaceuticals | 1,873 | 2,362 | 26% |
| Eternal | 327 | 400 | 22% |
| Bharti Airtel | 1,950 | 2,400 | 23% |
| Larsen & Toubro | 3,805 | 4,615 | 21% |
| Tata Steel | 169 | 195 | 15% |
(Source: JM Financial Services. CMP as of October 28, 2026)
1. ICICI Bank: Target Price Rs 1,710; Upside 24%
JM Financial has maintained a Buy rating on ICICI Bank with a target price of Rs 1,710, indicating an upside potential of 24% from its current market price of Rs 1,374.
The brokerage highlighted the bank’s strong franchise, robust credit growth and healthy non-interest income as key factors supporting its profitability. During Q2FY27, ICICI Bank’s loan and deposit growth accelerated to 30% and 27% year-on-year, respectively, aided by FCNR(B) mobilisation.
Excluding the impact of FCNR(B), underlying loan growth remained healthy at 24% YoY, driven by business banking and domestic corporate demand.
The brokerage expects near-term net interest margin (NIM) pressure to moderate, with recovery anticipated from Q4FY27 as surplus liquidity gets deployed. It also highlighted the bank’s strong asset quality, with the BB-and-below rated pool accounting for just around 0.2% of advances.
However, margin compression due to an adverse asset mix or slower growth remains a key risk.
2. Bharat Electronics: Target Price Rs 485; Upside 33%
On the list of Diwali Muhurat Trading 2026 Stock Picks, on number two, JM Financial has recommended Bharat Electronics Limited (BEL) with a target price of Rs 485, implying an upside potential of 33% from its current market price of Rs 364.
The brokerage believes BEL is well-positioned to benefit from India’s defence electronics indigenisation push and increasing domestic defence spending.
A strong order backlog of Rs 72,258 crore, equivalent to 2.6 times FY26 revenue, provides significant revenue visibility. The company is also targeting fresh order inflows of more than Rs 55,000 crore in FY27.
Its order pipeline is diversified across electronic fuses, LRSAM, LCA Mk1/Mk1A LRUs, BMP-2 upgrades, Ashwini Radar and electronic warfare systems.
JM Financial highlighted several upcoming defence programmes, including QRSAM, Next Generation Corvettes, Project Kusha, AMCA and Shakti Phase-IV, as potential growth drivers.
Management has maintained its FY27 revenue growth guidance of 15% or more and EBITDA margin guidance of 28% or above.
3. Power Grid: Target Price Rs 290; Upside 15%
When considering Diwali Muhurat Trading 2026 Stock, JM Financial has assigned a target price of Rs 290 to Power Grid, indicating an upside potential of 15% from its current market price of Rs 251.
The brokerage sees the company’s expanding capital expenditure programme and strong project pipeline as key growth drivers. Power Grid has set a capex target of Rs 37,000 crore and a capitalisation target of Rs 30,000 crore for FY27.
Its work-in-hand backlog stands at Rs 1.75 lakh crore, alongside active tenders worth Rs 73,400 crore, providing multi-year earnings visibility.
The brokerage also highlighted the Rs 1,86,405 crore Green Energy Corridor Phase III scheme as a major opportunity for the company, given its dominant position in India’s transmission infrastructure.
Power Grid has a 47% market share in ISTS TBCB projects and a bidding pipeline of Rs 1.19 lakh crore.
4. Sterlite Technologies: Target Price Rs 1,020; Upside 16%
For investors looking for Diwali Muhurat Trading 2026 Stock to buy, JM Financial has recommended Sterlite Technologies (STL) with a target price of Rs 1,020, indicating an upside potential of 16% from its current market price of Rs 879.
The brokerage highlighted the company’s strong Q2FY27 performance, with revenue, adjusted EBITDA and profit after tax rising 32%, 69% and 100% quarter-on-quarter, respectively.
Its growth outlook is supported by a record order backlog of Rs 35,274 crore, which is 4.6 times its FY26 order backlog.
The company has secured a 1.2 billion multi-year hyperscaler order for CY26-30 and a $1.11 billion AI data centre contract for FY27-29, alongside large domestic telecom orders.
Management has maintained its FY29 revenue target of Rs 20,000 crore while raising its EBITDA margin target to around 30% from 27%.
5. Gravita India: Target Price Rs 1,800; Upside 34%
Gravita India is JM Financial’s top pick in its Diwali 2026 list, with a target price of Rs 1,800, implying an upside potential of 34% from its current market price of Rs 1,343.
The brokerage highlighted Gravita’s diversified recycling operations across lead, copper, aluminium, plastics and rubber.
It expects the company to benefit from the growing circular economy and increasing formalisation of India’s recycling industry, which could drive volume growth for organised players.
Recent capacity expansion in lead recycling and its entry into copper recycling through the acquisition of Rashtriya Metal are expected to support its growth outlook.
Under its Vision 2030 strategy, Gravita is targeting a volume CAGR of 20-25%, profitability growth of 30-35% and return on invested capital (ROIC) of around 25%.
The brokerage also expects value-added products to contribute more than 60% and non-lead businesses to account for over 50% of the company’s business mix.
JM Financial believes the stock’s correction of around 30% from its 52-week high of Rs 1,914 has made its valuation attractive.
6. Emcure Pharmaceuticals: Target Price Rs 2,362; Upside 26%
JM Financial has maintained a Buy rating on Emcure Pharmaceuticals from the list of Diwali stocks to buy, with a target price of Rs 2,362, indicating an upside potential of 26% from its current market price of Rs 1,873.
The brokerage expects growth to be supported by expansion in domestic chronic therapies, including central nervous system (CNS), cardiology and women’s health.
International markets are also witnessing strong momentum, with Europe and Canada recording growth of 33% and 25%, respectively.
The company secured 15 product approvals across key global markets in Q1FY27, strengthening its international product pipeline.
JM Financial also highlighted growth opportunities from its ICMR anti-HPV licence for cervical neoplasia, its agreement with MSD for a generic oral HIV pill and the planned semaglutide filing in Canada.
Management has reiterated its FY27 guidance of low-to-mid-teen revenue growth and EBITDA margin expansion of 70-100 basis points.
7. Eternal: Target Price Rs 400; Upside 22%
From the list of Diwali Muhurat Trading 2026 Stock Picks, on number seven, JM Financial has recommended Eternal with a target price of Rs 400, indicating an upside potential of 22% from its current market price of Rs 327.
The brokerage highlighted the company’s leading position in India’s hyperlocal consumer platforms through Zomato, Blinkit, District and Hyperpure.
While Zomato remains its profitable cash-generating business, Blinkit is emerging as the key growth driver and currently accounts for around 59% of consumer order value.
The brokerage believes Blinkit’s expansion beyond groceries into categories such as electronics and appliances could help it capture a larger share of household consumption.
Management has upgraded its store expansion targets to more than 3,500 stores by March 2027 and around 5,000 stores by March 2028.
JM Financial also highlighted the 21.5% year-on-year growth in food-delivery net order value (NOV) during Q2FY27, supported by higher customer numbers, order frequency and improving monetisation.
However, rising competition and regulatory uncertainty remain key risks.
8. Bharti Airtel: Target Price Rs 2,400; Upside 23%
JM Financial’s Diwali Muhurat Trading 2026 Stock picks has assigned a target price of Rs 2,400 to Bharti Airtel, implying an upside potential of 23% from its current market price of Rs 1,950.
The brokerage highlighted Airtel’s premium positioning in India’s telecom sector, supported by an industry-leading average revenue per user (ARPU) of Rs 264.
It expects tariff hikes to remain a key growth catalyst for the telecom operator. India’s wireless ARPU is projected to grow at around 12% CAGR over FY25-28, supported by potential tariff increases of 10-15% after Jio’s listing.
Airtel’s strategy of removing select entry-level prepaid plans is also aimed at encouraging customers to move towards higher-value plans.
JM Financial further expects lower capital expenditure intensity following the completion of major 5G network rollouts to support stronger free cash flow generation and balance-sheet improvement.
9. Larsen & Toubro: Target Price Rs 4,615; Upside 21%
From the list of Diwali Muhurat Trading 2026 Stock to buy, JM Financial has recommended Larsen & Toubro (L&T) with a target price of Rs 4,615, indicating an upside potential of 21% from its current market price of Rs 3,805.
The brokerage highlighted L&T’s diversified presence across infrastructure, energy, heavy engineering, defence, hi-tech manufacturing and services.
The company’s order inflows reached a record Rs 1.48 lakh crore in Q2FY27, while its order book stood at Rs 8.54 lakh crore, providing strong multi-year execution visibility.
International markets account for around 54% of its order backlog, while the company has an opportunity pipeline of Rs 10.3 lakh crore for the second half of FY27.
Management has reiterated its FY27 guidance of 10-12% growth in order inflows and revenue.
JM Financial believes the strong order pipeline and diversified business operations will support the company’s growth outlook. However, execution delays, cost overruns and prolonged geopolitical tensions in West Asia remain key risks.
10. Tata Steel: Target Price Rs 195; Upside 15%
JM Financial has recommended Tata Steel with a target price of Rs 195, implying an upside potential of 15% from its current market price of Rs 169.
The brokerage prefers Tata Steel in the metals sector, citing the potential benefits of safeguard duties and recent domestic steel price hikes.
These developments are expected to support above-average EBITDA margins for its India business, alongside an estimated volume CAGR of 6-7% over FY27-28.
The brokerage expects Tata Steel to generate sustainable annual EBITDA of Rs 38,000-40,000 crore.
Improvement in volumes and profitability is also expected to be supported by the restart of the idled blast furnace in the Netherlands, improving UK spreads, and tighter European Union safeguard quotas.
JM Financial expects EBITDA and profit after tax to grow at a CAGR of 17% and 30%, respectively, over FY26-29.
Following a correction of around 25% from its 52-week high, the brokerage believes the stock is trading at an attractive valuation of around 6 times estimated FY28 EV/EBITDA.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)