Motilal Oswal has picked a basket of stocks to buy this Diwali. The brokerage sees potential of as much as 38% in one of the stocks. From State Bank of India, Bharat Electronics, to VIP Industries, the brokerage has chosen 10 stocks this Samvat.
State Bank of India
The brokerage house has a target price of Rs 1,000 on State Bank of India, implying an upside of 14% from current levels. The broker firm said that structural tailwinds from government reforms such as GST 2.0, income tax reforms, and RBI’s liquidity infusion, will lead to robust credit growth along with supporting profitability for the BFSI sector. SBI stands out for its diversified growth momentum across retail, SME, and corporate segments, supported by a robust credit pipeline and digital transformation.
Mahindra & Mahindra
Mahindra & Mahindra’s strong line-up of new vehicles, like seven ICE SUVs, five BEVs, and five LCVs by 2030, starting from CY26, positions the automobile giant strongly across both ICE and EV segments. “M&M is poised to deliver strong earnings growth, driven by rural recovery, & robust launches, further reinforced by improving tractor margins & immediate GST rate pass-through to consumers,” said Motilal Oswal. The brokerage has a price target of Rs 4,091, which implies an upside of 18%.
Bharat Electronics
The Indian Army’s Rs 30,000 crore tender for the ‘Anant Shastra’ project, with Bharat Electronics as lead integrator, boosts its order book beyond Rs 1 lakh crore and underscores its leadership in strategic defence programs. Positioned strongly under the TPCR 2025 roadmap, it is set to benefit from sustained opportunities across the Army, Navy, and Air Force. Bharat Electronics offers robust long-term growth visibility, making it a compelling investment in India’s defence modernisation journey. The brokerage expects the stock to surge 22% from current levels to reach a price of Rs 490.
Swiggy
Swiggy expects its Quick Commerce arm to achieve profitability sooner, aided by easing competition, moderated dark store expansion, and lower acquisition costs. Swiggy has strengthened its Food Delivery outlook, with growth estimates raised to 23% for FY26–FY27, compared to 20% earlier, driven by GST-led boost to disposable income & rising discretionary spending. The brokerage has a target price of Rs 550, implying an upside of 25%.
Indian Hotels
The Indian hospitality industry is set for robust growth in FY26, driven by rising ARR, higher occupancy, and strong RevPAR. Increased MICE activity, cultural events, and a vibrant wedding season in H2 FY26 will further boost performance. “We expect strong momentum to continue, led by a strong room addition pipeline in owned/management hotels (3,770/16,430 rooms) and continued favourable demand-supply dynamics,” said Motilal Oswal. The brokerage house has a target price of Rs 880 on The Indian Hotels Company, implying an upside of 21%.
Max Financial
Max Financial is poised for above-industry growth, supported by strong bancassurance traction, a resilient agency channel, and a favourable product mix. Value of New Business (VNB) margins are improving QoQ, aided by product mix shifts and rising rider penetration. The GST waiver is set to further boost affordability and insurance penetration. Max Financial Services will maintain its premium valuations, driven by new product launches, robust growth trend & improving margin profile. The brokerage house has a target price of Rs 2,000, implying an upside of 24% from current levels.
Radico Khaitan
Another Diwali stock by Motilal Oswal is Radico Khaitan, in which it sees a potential of another 16% from current levels, reaching a price of Rs 3,375. Radico Khaitan is well-positioned for long-term growth through aggressive expansion in the premium and luxury spirits segment, leveraging strong brand equity with leading products like 8 PM, Magic Moments, and Rampur Single Malt. It commands an 8% market share in the Prestige & Above (P&A) segment, with rising consumer premiumisation.
New launches like Morpheus Super Premium Whisky & Spirit of Kashmir support future growth. Lately, Radico acquired a 47.5% equity stake in D’YAVOL Spirits B.V., aiming to take India to the World by building bottled-in-origin luxury brands, targeting Tequila and other niche categories.
Delhivery
Delhivery has a market share of more than 20% in the express logistics space and has rapidly increased presence in the Partial Truckload (PTL) segment after the acquisition of Spoton Logistics in 2021. The recent Rs 1,400 crore Ecom Express acquisition enhances Delhivery’s rural coverage, strengthens network density, and drives cost synergies. It is poised for sustained growth, supported by a rising user base, new category launches, and expanding e-commerce. The brokerage has a target price of Rs 540, an upside of 15% from current levels.
LT Foods
LT Foods is well-positioned for long-term growth, leveraging its strong brand equity with Daawat and Royal, exporting to 80+ countries & commanding 30% and 50% share in the India and US basmati markets. The brokerage has a target price of Rs 560, implying an upside of 38%, which is the highest among all picks.
Motilal said that growth drivers include expanding volumes in Basmati and Speciality Rice and increasing focus on high-margin O&CH segments. Exports, which make 66% of the revenue of FY25, offer better realisations and margins vs the domestic market, making the business structurally export-led.
VIP Industries
VIP Industries, a leading player in India’s Rs 17,000 crore luggage market, has outpaced industry growth, delivering a revenue CAGR of 19% over FY22–25. With a scalable, profitable digital engine complementing its offline leadership, VIP is well-placed to capture long-term market share gains.
“We expect VIP to deliver industry-beating growth by leveraging the integrated strategy of premiumisation, digital scale and margin-accretive supply chain,” said Motilal Oswal. The brokerage expects the stock to increase 26% to Rs 530.