Ashish Damania from IDFC Securities has come up with three stocks to buy this Diwali to give an edge to your portfolio. In an interview to ET Now, Ashish Damania, Head- Institutional Equities said \u00a0in response to his top bets this Samvat 2074, \u201cOne is HPCL, then Hindalco and Motherson Sumi.\u201d\u00a0Hindalco shares were trading at Rs 271.70, up by more than 1.91% since the previous close. Interestingly, the shares have returned more than 77% in the year so far. Kumar Mangalam Birla led- Hindalco Ltd is reportedly gearing up to mount a multi-billion dollar bid to acquire Aleris from its private equity owners. \u201c When businesses are built, entrepreneurs take into account a 25 year view rather than a 5 year view. We need to understand at what valuation Hindalco will be doing the deal, and what\u2019s in it for them,\u201d Ashish Damania told the channel.\u00a0An acquisition of Aleris will help Hindalco and Novelis consolidate further in the can and auto segments.\u00a0 IDFC\u2019s next bet, Motherson Sumi shares have returned more than 66% in the year so far. Ashish Damania is bullish on the shares, as he feels it has been an excellent pick in an otherwise dull auto-ancillary sector. Motherson Sumi shares were trading at Rs 357, up by more than 0.4%.\u00a0HPCL is another IDFC top pick which has given above 50% returns since January. HPCL shares were trading flat at Rs 460.65 on NSE this morning. Even research and brokerage firm Morgan Stanley is bullish in the shares of HPCL. The global research firm has a buy recommendation with a target of Rs 543. Coming to what the mutual fund managers are up to, Ashish Damani says, \u201cMutual Fund mangers, instead of adding taking fresh positions, are actually adding on the existing positions as they are mindful of the valuations. So that is what is driving the prices higher.\u201d According to him, only the stocks which have a proven track record of earnings or cash flows have moved up in recent times.