Religare Broking’s Picks 2025  for Diwali Muhurat trading has put the spotlight on five stocks it expects to outperform in the coming Samvat year. The brokerage projects gains of up to 26.6% across its top recommendations Reliance Industries, HDFC Life Insurance, Power Finance Corporation, Mahindra & Mahindra Financial Services, and Nuvoco Vistas supported by India’s domestic demand recovery, rising digital adoption, and renewed investment in energy and infrastructure.

The report, released ahead of the Muhurat trading session marking the start of Samvat 2082, signals a confident stance on India’s multi-year growth story. It attributes the optimism to continued capex momentum, policy stability, and improving profitability across core sectors.

Religare Broking on Reliance Industries: ‘Buy’

Religare Broking has a ‘Buy’ rating on Reliance Industries  (RIL) with a target price of Rs 1,600, implying an upside potential of 16.4%.

The brokerage expects Reliance’s consumer businesses Jio and Reliance Retail to remain the main growth engines, supported by a long runway in digital connectivity and consumption. “Jio’s consistent ability to add millions of new subscribers each quarter, combined with a steady increase in ARPU driven by the ongoing 5G rollout and premiumisation, points to a long runway of high-margin growth,” the report said.

Reliance Retail’s expansion through new stores and the JioMart platform is expected to deepen market penetration across India’s rising consumption base. The company’s New Energy venture, with giga-factories in Jamnagar expected to go live in the next 4–6 quarters, is highlighted as a key inflection point. “This business is strategically designed to be a self-funding growth engine,” the brokerage added, noting that it will provide low-cost captive power and support group-wide profitability.

Religare Broking on HDFC Life Insurance: ‘Buy’

Religare Broking maintained a ‘Buy’ rating on HDFC Life Insurance Company with a target price of Rs 870, projecting an upside of 17%.

The brokerage described HDFC Life as “a steady compounder,” driven by stable persistency, digital adoption, and strong brand equity. A subsidiary of HDFC Bank, the insurer recorded 18% growth in individual APE and a 13% increase in VNB to Rs 3,962 crore in FY25, maintaining an 11.1% market share in individual weighted received premium (WRP).

Persistency ratios stood at 87% (13th month) and 63% (61st month), reflecting strong customer retention. With 2.4 lakh agents and 600 branches, the company’s diversified distribution continues to anchor growth. Religare said HDFC Life’s “Project Inspire” a technology-driven initiative aimed at improving agent productivity is boosting operating efficiency and scalability.

Financially, embedded value (EV) is projected to grow to Rs 71,249 crore in FY27 from Rs 50,610 crore in FY25, with EV per share increasing to Rs 331.5 from Rs 235.5.
The brokerage expects an EV CAGR of 17% over FY25–27, valuing the stock at 2.6x FY27E EV, underpinned by sustained profitability and digital leverage.

Religare Broking on Power Finance Corporation: ‘Buy’

Power Finance Corporation (PFC) leads Religare’s Diwali picks with the highest projected upside of 26.6% and a target price of Rs 502. The brokerage retained a ‘Buy’ rating, citing PFC’s pivotal role in financing India’s energy transition and infrastructure build-out.

A Maharatna PSU and India’s largest NBFC in the power sector, PFC has consolidated its leadership following the acquisition of REC. The brokerage said the company’s loan book growth remains on a strong trajectory, with an expected 12.4% CAGR through FY27, led by private-sector participation in renewables and power distribution. Disbursements are projected to grow at 13.5% annually, supported by steady asset quality and resilient net interest margins (around 3.8%).

PFC’s profit after tax is forecast to increase to Rs 21,868 crore in FY27 from Rs 17,352 crore in FY25, with EPS rising to Rs 66.3 from Rs 52.6.
Return on equity is expected to remain steady around 18–19%, while book value per share may rise to Rs 365 from Rs 276 over the same period. The brokerage values the stock at 0.9x FY27E adjusted book value, also factoring in its stake in REC with a 30% holding-company discount.

Religare said PFC is “structurally positioned for sustained value creation,” benefiting from national targets on renewable energy, grid modernisation, and energy access.

Religare Broking on Mahindra & Mahindra Financial Services: ‘Buy’

Religare Broking has a ‘Buy’ call on Mahindra & Mahindra Financial Services (MMFS) with a target price of Rs 327, implying a 14.3% upside. The brokerage expects a rebound in rural demand and improving cost efficiency to lift profitability over the medium term.

The NBFC, part of the Mahindra Group, operates a deep rural and semi-urban network with over 1,375 branches. Its asset growth is closely tied to Mahindra’s expanding vehicle and tractor business, creating a reliable pipeline for loan demand. The brokerage highlighted that “this powerful synergy provides a strong foundation for consistent AUM expansion,” supported by positive rural income trends.

Easing funding costs are expected to expand net interest margins, while digital initiatives will streamline operations and reduce the cost-to-income ratio. MMFS is also diversifying into SME lending, leasing, and digital financial products, reducing dependence on cyclical vehicle loans.

Financially, profit after tax is projected to rise to Rs 3,680 crore in FY27 from Rs 2,261 crore in FY25, with EPS improving to Rs 29.8 from Rs 18.3.
Return on equity is forecast to strengthen to 14.2% from 12.4%, and the brokerage values the company at 1.4x FY27E adjusted book value.

Religare said MMFS “is well-positioned for healthy earnings momentum,” citing steady AUM growth, operational efficiency gains, and stable asset quality.

Religare Broking on Nuvoco Vistas: ‘Buy’

Religare Broking reaffirmed a ‘Buy’ rating on Nuvoco Vistas Corporation, setting a target price of Rs 478, which implies an upside of 12.4%. The brokerage said the cement maker’s improving margins, balance sheet discipline, and upcoming capacity expansion provide strong visibility for future growth.

Nuvoco, with a significant presence in eastern India and a growing footprint in the west, plans to expand capacity to 31 million tonnes per annum (MTPA) by FY27 after acquiring Vadraj Cement. Religare described the deal as “a key strategic initiative that strengthens Nuvoco’s presence in the high-growth Western India market.”

The company has demonstrated strong operational execution, supported by steady demand and improved pricing. EBITDA per tonne has reached multi-quarter highs due to sustained cost savings in power and fuel.
Revenue is expected to climb to Rs 15,250 crore in FY27 from Rs 10,356 crore in FY25, while EBITDA may rise to Rs 2,407 crore from Rs 1,371 crore. Net profit is forecast to surge to Rs 361 crore from Rs 19 crore during the same period.

The brokerage expects EV/EBITDA multiples to decline to 7.4x FY27E from 14x currently, reflecting operating leverage and margin improvement. It said the company’s strategy of deleveraging while expanding capacity “inspires confidence in the sustainability of its growth trajectory.”

Religare Broking on sector outlook: steady, diversified, growth-focused

Religare’s Diwali 2025 report positions its top five picks as a cross-section of India’s evolving growth story spanning energy transition, financial deepening, rural consumption, and infrastructure expansion. The brokerage believes the combination of structural reforms, government-led capex, and corporate balance-sheet strength will sustain earnings momentum through FY27.

“India’s growth cycle is entering a phase where large-cap quality and government-linked capital expenditure will dominate, but the next leg of returns will also come from efficiency, digitisation, and new-age profitability,” the brokerage said.

The average expected upside across all five recommendations stands at about 17%, led by PFC’s 26.6% potential. Reliance and HDFC Life represent steady compounders; MMFS and Nuvoco capture cyclical recovery themes; PFC anchors the power-finance narrative with policy tailwinds.