Diwali 2026 stock picks: With Diwali approaching, investors looking to add stocks to their portfolios may be weighing opportunities across banking, technology, infrastructure, pharmaceuticals and financial services. Anand Rathi Share and Stock Brokers has identified six stocks for its Diwali 2026 portfolio, assigning Buy ratings and setting 12-month target prices that indicate potential upside of 16% to 35% from their November 2 closing prices.
The list includes large-cap names such as State Bank of India (SBI) and Tech Mahindra, alongside companies such as Cemindia Projects, Shilpa Medicare and Indo-MIM. The recommendations are based on individual business prospects, earnings visibility and sector-specific growth opportunities.
Diwali 2026 stock picks: Six stocks and why Anand Rathi is bullish
1. State Bank of India (SBI)
SBI is Anand Rathi’s top pick in terms of potential upside, with a target price of ₹1,337 against the current market price of ₹987, indicating a potential gain of 35% over 12 months.
The brokerage expects the lender to benefit from healthy deposit and credit growth, a diversified loan book and improving asset quality. SBI’s deposits grew at a 10.3% CAGR between FY24 and FY26, while gross advances increased at a faster 14.4% CAGR. Its focus on mobilising low-cost retail deposits could also help lower its cost of funds and support net interest margins.
The bank’s gross NPA ratio declined to 1.47% in Q1FY27 from 1.83% a year earlier, while its net NPA ratio fell to 0.38% from 0.47%. Anand Rathi said, “SBI’s strong deposit and credit growth” should support sustainable earnings growth and profitability.
2. Cemindia Projects
Anand Rathi has set a target price of ₹1,615 for Cemindia Projects, compared with its current price of ₹1,291, implying an upside of 25%.
The company’s expertise in complex infrastructure projects, including marine structures, underground metros, tunnelling, airports and industrial infrastructure, gives it an advantage in projects with high entry barriers. Its order book stood at around ₹31,300 crore in Q1FY27, equivalent to 3.1 times FY26 revenue, while its bidding pipeline was approximately ₹90,000 crore.
The brokerage expects revenue and EBITDA to grow at CAGRs of around 22% and 23%, respectively, between FY26 and FY29. It highlighted the company’s “asset-light EPC model” as an advantage, as it avoids capital-intensive BOT and HAM projects. Execution delays, working-capital requirements and cost overruns remain key risks.
3. Shilpa Medicare
Shilpa Medicare is another pharmaceutical stock on the list, with Anand Rathi assigning a target price of ₹1,160 against its current market price of ₹929. This translates into a potential upside of 25%.
The brokerage sees growth opportunities in the company’s specialty pharmaceuticals, complex formulations, contract development and manufacturing (CDMO) business and biologics portfolio. Shilpa Medicare reported record quarterly revenue of ₹469 crore in Q1FY27, up 43% year-on-year, while EBITDA rose 42% to ₹139 crore.
Its pipeline includes more than 25 new chemical entity programmes, with three advanced-stage programmes targeted for commercialisation in FY28. The planned launch of Aflibercept in India in FY27 and its Nivolumab partnership with Orion could provide further growth opportunities. Better utilisation of existing biologics and formulation capacities could also support margins.
4. Indo-MIM
Anand Rathi has a target price of ₹1,500 for Indo-MIM, compared with its current price of ₹1,190, indicating a potential upside of 26%.
The company is the world’s largest manufacturer of precision-engineered components using metal injection moulding (MIM) technology. Its products cater to automotive, defence, medical, consumer electronics and aerospace industries.
The brokerage sees opportunities from increasing demand for high-precision components and the company’s expansion into aerospace machining and investment casting. Exports contributed 77% of FY26 revenue, while its global manufacturing footprint spans 15 plants. Its exposure to emerging areas such as robotics, space, drones and semiconductor components adds to its long-term growth potential.
HDFC AMC has a target price of ₹2,800 against its current market price of ₹2,380, implying an upside of 18%.
Anand Rathi expects the company to benefit from the structural expansion of India’s mutual fund industry. Its quarterly average assets under management stood at ₹9.69 lakh crore in Q2FY27, with an equity-oriented AUM mix of 67%, higher than the industry average of 58%.
Its retail franchise, systematic investment plan flows and expansion into alternative investment funds and specialised investment funds provide additional growth opportunities. The brokerage also highlighted its asset-light business model and healthy profitability, while identifying market share, fund performance and competition as key monitorables.
6. Tech Mahindra
Tech Mahindra has a target price of ₹2,065, compared with its current market price of ₹1,787, indicating a potential upside of 16%.
The brokerage believes the company is moving from margin improvement towards a stronger growth trajectory, supported by AI-led services and improving deal momentum. New deal total contract value increased 25.4% year-on-year to $1.02 billion, while last-twelve-month deal wins rose 34.8% to $4.27 billion.
Its Project Helix initiative aims to embed AI across service lines and develop industry-specific transformation offerings. Anand Rathi highlighted its “AI-led positioning” and expects margin improvement to be supported by productivity gains and cost optimisation. The conversion of its deal pipeline into revenue and a recovery in BFSI demand remain important monitorables.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
