Diwali is considered an auspicious time to make new investments in India. Many investors look forward to this festive season to begin their journey in the stock market or add quality companies to their portfolios. This year, HDFC Securities has announced its Top 10 Diwali Stock Picks for 2025, focusing on companies with solid fundamentals and strong growth potential.
Overview of Contents
Top 10 Diwali Stock Picks 2025 by HDFC Securities
These stocks have been carefully selected based on their business models, sector trends, and future earnings outlook. Let’s take a closer look at each of these picks.
1. Associated Alcohols and Breweries – A Strong Play in Premium Liquor Market
Associated Alcohols and Breweries (AABL) offers investors exposure to India’s fast-growing alcoholic beverages industry. The company is expanding into new regions, focusing on premium products, and improving efficiency through its ethanol and distillery units.
With rising consumer demand for premium liquor and government support for ethanol blending, AABL is expected to see a steady improvement in margins and profits over the medium to long term.
- LTP: ₹1,010
- Target: ₹1,182
- Buy Range: ₹1,008–₹1,035
2. Bharti Airtel – Riding the Telecom Boom
Bharti Airtel continues to remain a strong player in India’s telecom sector. With consistent growth in ARPU (Average Revenue Per User), upcoming tariff hikes, and expansion in both domestic and African markets, the company is well placed for sustained earnings growth.
Its integration with Indus Towers also provides additional operational advantages.
- LTP: ₹1,955
- Target: ₹2,244
- Buy Range: ₹1,935–₹1,985
3. JSW Energy – Benefiting from the Renewable Push
JSW Energy is making strong progress in renewable energy projects, backed by long-term Power Purchase Agreements (PPAs). The company’s disciplined financial strategy and strong execution make it a solid choice for investors looking at India’s green energy transition story.
- LTP: ₹544.5
- Target: ₹639
- Buy Range: ₹538–₹555
4. Larsen & Toubro – A Structural Growth Story
L&T is one of India’s largest engineering and infrastructure companies. With a healthy order book across infrastructure, energy, and hydrocarbon sectors, it is a major beneficiary of the ongoing capital expenditure cycle in the country.
Improving operating margins and a diversified project pipeline make L&T a core portfolio stock for long-term investors.
- LTP: ₹3,770
- Target: ₹4,243
- Buy Range: ₹3,760–₹3,818
5. IDFC First Bank – Retail Transformation Underway
IDFC First Bank is undergoing a major shift towards a retail-focused business model. The bank has improved its CASA (Current Account Savings Account) ratio and is focusing on margin recovery, which is expected to boost its earnings over the coming years.
Its digital initiatives and loan book expansion also support its growth potential.
- LTP: ₹73.7
- Target: ₹88.5
- Buy Range: ₹73–₹75
6. Happy Forgings – A Manufacturing Growth Story
Happy Forgings is benefiting from global demand in industrial and automotive sectors. With strong capex plans and a growing order book, the company is expanding in precision forging and machining.
As manufacturing picks up in India, this company is expected to see higher volumes and better profitability.
- LTP: ₹921
- Target: ₹1,083
- Buy Range: ₹910–₹944
7. MSTC Ltd – Leader in E-Commerce for Government
MSTC has a near-monopoly in the government e-commerce and recycling segment. With opportunities in vehicle scrappage policy implementation, the company has a unique position to grow through asset-light and policy-driven business models.
- LTP: ₹530
- Target: ₹673
- Buy Range: ₹525–₹548
8. Northern Arc Capital – Financial Inclusion Play
Northern Arc Capital focuses on credit distribution and financial inclusion in India. With strong asset quality and scope to benefit from credit growth and lower interest rates, this stock represents a play on India’s expanding financial ecosystem.
- LTP: ₹270
- Target: ₹333.5
- Buy Range: ₹265–₹277
9. Pidilite Industries – Consistent Compounder
Pidilite Industries is a household name in adhesives and construction chemicals. The company has strong brand recall, stable demand from the real estate and consumer sectors, and opportunities for further margin expansion.
It remains a long-term favorite for conservative investors looking for steady growth.
- LTP: ₹1,514
- Target: ₹1,717
- Buy Range: ₹1,500–₹1,550
10. Sheela Foam – Growth Through Acquisitions
Sheela Foam, known for its mattress and comfort products, is expected to benefit from its acquisition of Kurlon. The company is seeing synergy benefits, better raw material trends, and a favorable business mix. This combination is likely to drive earnings growth going forward.
- LTP: ₹678
- Target: ₹837
- Buy Range: ₹678–₹698
Conclusion
HDFC Securities’ Top 10 Diwali Stock Picks 2025 focus on companies that are fundamentally strong, well-positioned in their respective sectors, and have clear growth drivers. From telecom to renewable energy and from finance to manufacturing, these stocks offer a mix of stability and growth potential.
As always, investors should do their own research or consult a financial advisor before making any investment decisions. Diwali is a great time to start, but a long-term disciplined approach is what truly builds wealth.
FAQs
What is the significance of Diwali for stock market investments?
Diwali is considered an auspicious time for starting new ventures and investments in India. Many investors participate in “Muhurat Trading,” a special trading session to mark the festive occasion.
Are these stocks suitable for short-term investment?
These picks are mainly selected based on their medium to long-term growth potential. Short-term traders should monitor price movements closely and set appropriate stop-loss levels.
Can new investors invest in these stocks?
Yes, these stocks are chosen for their strong fundamentals. New investors can consider them as part of a diversified portfolio, but it’s advisable to invest gradually and understand the market basics.
Do I need a Demat account to invest in these companies?
Yes, a Demat and trading account is required to buy or sell shares in the Indian stock market.
Should I invest in all 10 stocks?
Not necessarily. It depends on your investment goals, risk appetite, and capital. You can pick a few based on your research and portfolio strategy.