Diwali Muhurat picks 2026: As investors will go out to buy auspicious things on Dhanteras, Nirmal Bang has picked Diwali Muhurat stocks for 2026. These spans from insurance to telecom cables to pharma and others, all with a “Buy” rating. The brokerage cited a growing protection and annuity mix, rising connectivity attachment, a biologics shift, value-added packaging, and 27 per cent desk capacity growth as key drivers behind the target price.
ICICI Life Insurance Company
Net Book Value (NBV) grew 20.3 per cent YoY to Rs 710 crore in Q2FY27, outpacing APE growth of 15.6 per cent to Rs 2,800 crore, as the mix shifted towards higher-margin protection and annuity. Protection APE grew 33.7 per cent to a 20 per cent share, with retail protection up 36.5 per cent, while annuity grew 65.5 per cent and group funds 51.5 per cent.
“Our target price has remained unchanged as the roll-forward of the report date unwinds the discount to a fixed Mar-28E horizon, offsetting the lower implied multiple (1.6x vs 1.7x previously). We maintain our ‘Buy’ rating on the stock. The share trades at 0.9x Mar-28E P/EV while offering a normalised ROEV of 13 per cent,” said the brokerage. Nirmal Bang kept the price target at Rs 660, which is an upside of 61 per cent from the current market price.
The brokerage has maintained its valuation multiple of 20x blended FY28 and FY29 EV/EBITDA and reiterated its ‘BUY’ rating with a revised target price of Rs 1,544 from Rs 1,340. This looks at an upside of 103 per cent from the current market price.
“We estimate an 11% revenue CAGR and a 12% EBITDA CAGR over FY26-28, with an EBITDA margin rising to 36.3% in FY28. With capex falling and Rs 550-700 crore of debt repaid, we expect return ratios to improve over FY27-28,” said Nirmal Bang.
Biologics currently carries lower gross margins which the broker expects to improve with in-house Bhopal plant ramp up. Management sees a 150-200 basis points total benefit to margin once the shift is complete, and the brokerage expects gross margin to improve about 75.4 per cent in FY28.
The company has in-house facilities for mould design and manufacturing, including labels for IML products and the robots used for the IML process. The brokerage said it sees the company as a business characterised by ever expanding TAM backed by an innovation-driven portfolio and backward integration focus.
It continues to move up in the value chain wherein they expect the quality of earnings to improve further as the new high margin segments scale over the medium term.
Nirmal Bang maintained its ‘Buy’ rating on the stock, with a revised price target of Rs 480, which looks at an upside of 52 per cent.
Nirmal Bang maintained its Buy rating on the stock, with a price target of Rs 983, which is an upside of 48 per cent from the current market price.
The brokerage house estimated FY26–28 revenue and adjusted EBITDA CAGRs of 27 per cent and 33 per cent, respectively. “We have raised FY27 and FY28 adjusted EBITDA estimates by 6 per cent.
Wework added 11.7k desks in Q2FY27, taking operational capacity to 145.3k desks, an increase of 27 per cent YoY, while 47k desks are secured through leases and LOIs. Management targets 15–20 per cent annual capacity additions, with FY28 additions expected to exceed FY27.
(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.)