JM Financial is betting on 12 stocks this Diwali. The brokerage has picked a set ranging from the banking sector stock like Axis Bank to a Data Centre stock, Anant Raj. The brokerage sees as much as 31% upside in one of the picks. 

JM Financial on Maruti Suzuki 

Ramp-up in costs at Maruti Suzuki’s new greenfield plant in Kharkhoda (capacity of 2.5 lakh units per annum) is expected to decline as operations stabilise. A shift toward a more favourable product mix—particularly an increase in CNG SUV offerings—is likely to support margin. Additionally, the upcoming in-house battery plant is expected to enable a series of hybrid vehicle launches. This vertical integration is expected to lower costs and enhance profitability in the hybrid segment. The brokerage has a target price of Rs 19,000 on the stock, looking at an upside of 16%. 

JM Financial on Axis Bank

Axis Bank’s operating profit beat expectations, primarily driven by moderation in operating expenses. However, profitability was impacted by elevated credit costs arising from technical slippages due to a shift in NPA recognition norms. With liquidity conditions expected to improve and credit costs likely to normalise, the brokerage expects a pick-up in growth momentum over the coming quarters. JM Financial said that the stock at the current valuation is inexpensive. It has a target price of Rs 1,330, which is an upside of 12% from current levels. 

JM Financial on Apollo Hospitals

The stock trades at an enterprise value to its EBITDA of 25x for FY27, which the brokerage thinks is at a steep discount to Max Healthcare despite a similar growth profile. The hospital has announced plans to add 3,577 beds over FY26-27 with a planned capex of Rs 5,500 crore over the horizon, with a significant portion of these additions to come online in FY26–27, and the remainder likely to be commissioned after FY28. 

This phased rollout provides a buffer to maintain healthy margins in the interim. JM Financial sees the stock reaching as much as Rs 9,000 over the next 12 months, which is 17% upside from the current market price.

JM Financial on Fiem Industries

Fiem Industries continues to strengthen its presence in the 4-wheeler segment (3% of FY25 sales) with key wins including a second order from Mercedes, new contracts for M&M’s Bolero,

and development orders from Force Motors. Lighting remains the key revenue driver, supported by a strong order book and product pipeline. The brokerage has a target price of Rs 2,400, looking at an upside of 22%.

JM Financial on IIFL Finance

The likely pick-up in the AUM growth would drive a strong recovery in EPS and RoE to Rs 46 and 13% in FY27, which translates into a multi-fold rise of 5x and a 960 basis points improvement over FY25-27. JM Financial said that valuation comfort and earnings recovery would drive re-rating and make the risk-to-reward ratio favourable. The continuous momentum in gold prices could result upward revision of earnings estimates and the quality of the loan portfolio. The brokerage has a target price of Rs 600, looking at an upside of 22%.

JM Financial on L&T Finance

L&T Finance began FY26 on a stable footing, despite ongoing asset quality challenges in the Micro Finance Industry (more residual in nature), unsecured business loans and micro-LAP. The company continues to pursue a measured growth strategy, with a sharper focus on secured and prime segments, while effectively leveraging its proprietary underwriting platform, Project Cyclops, to reinforce credit discipline.

The brokerage expects the company to sustain its growth momentum with healthy traction in Q2, followed by a strong acceleration in H2, supported by festive season demand. This led the brokerage to have a target price of Rs 300, implying an upside of 12% from current levels. 

JM Financial on Brainbees Solutions

The IMC (Inventory Management and Control) segment achieved 24% adjusted EBITDA growth in FY25 and is projected to deliver a 22% CAGR over the next three years. Despite this robust outlook, it currently trades significantly lower than traditional retailers with slower growth and limited margin expansion. This makes the stock well-positioned for a rerating at even the slightest indication of growth recovery.

The company’s management remains focused on sustainable growth and improving margins, with an early to mid-teens revenue growth target for FY26. The brokerage has a target price of Rs 460, implying an upside of 25% from current levels. 

JM Financial on Anant Raj

JM Financial’s one of Diwali bets includes Anant Raj. The stock is a leading real estate developer with diversified revenue streams, strong execution capabilities and is swiftly scaling up exposure to future-ready digital infrastructure. The company’s diverse portfolio spanning housing, commercial, hospitality, and data centres provides a well-balanced growth engine for medium to long-term. The brokerage sees the stock reaching a price of Rs 844 over the next 12 months, implying an upside of 25%.

JM Financial on Lloyds Metals & Energy

The company has significantly underperformed the metal index despite a strong earnings growth outlook led by a significant rise in its iron ore production, which JM Financial finds a good opportunity to enter into the stock. The company has continued to scale up production with Q2FY26 and H1FY26 production growth of 24% and 77% to 7.4mt and 3.4mt YoY. 

“The recent 16% fall in the stock price of Lloyds Metals provides a good entry opportunity, given our expectation of a sharp ramp-up in the iron ore production to 6-7mt from Q3FY26 onwards (versus 4mt and 3.4mt in Q1 and Q2 of FY26 and implies robust growth of 1.5-1.75x) provides volume/earnings growth visibility over FY26-28,” said JM Financial. 

JM Financial on Astral

The company continues to strengthen its CPVC franchise through backward integration into resin (40 ktpa by Q2 FY27), which should enhance supply security, support margins, and competitiveness. Bathware stands out as a significant growth opportunity, with revenues expected to increase from Rs 120 crores in FY25 to Rs 500 crores over the medium term, fueled by urbanisation and rising hygiene awareness.

The valuation reflects the company’s superior margins in the pipes segment, potential for further margin expansion through backward integration, strong growth momentum in the adhesives business, and a solid balance sheet. JM Financial has a target price of Rs 1,600 on the stock, implying an upside of 13%.

JM Financial on Ratnamani Metals & Tubes

Ratnamani Metals & Tubes’ stock price has corrected by 40% from the 52-week high of Rs 3,770, providing an attractive entry opportunity. JM Financial sees a target price of Rs 2,900, which is an upside of 25%. This is because the company is showing signs of improvement in its order book, which would further improve its earnings outlook. The brokerage sees earnings growth to be led by scale-up at the spooling business (order book of Rs 500 crore). 

With a strong balance sheet (net cash & cash equivalent of Rs 264 crore) and a diversified product offering in steel tubes and pipes, Ratnamani Metals & Tubes is well-positioned to take advantage of medium-term to long-term growth opportunities in the oil & gas and water sectors.

JM Financial on Eureka Forbes

Many strong brands like Havells, Tata Swacch, and V-Guard have entered the water purifier market, but none of them has been able to capture more than 5% market share, which is a

testament to Aquaguard’s excellent brand equity. The company’s first preference call of about 62% is substantially higher than the company’s current market share (over 40%), presenting a market share gain opportunity for the company.

Going forward, the company intends to improve its financial performance mainly through sustained volume-led growth, higher spending in growth initiatives like advertising and

promotion, and improving in-store and digital presence. The brokerage sees an upside of 31% in the stock, reaching at Rs 715 over the next 12 months.