The Indian stock market benchmark indices, Sensex and Nifty 50, have delivered muted performance in the past one year, tracking tepid corporate earnings, global headwinds, and sustained outflow of foreign funds.
Going ahead, key triggers for the Indian stock market include the real demand growth across consumer categories in the ongoing festive season consequent to GST rate cut and a potential US-India trade deal.
“Corporate earnings are expected to grow at 12% CAGR over FY25-27E. We expect double digit earnings growth to resume from FY27E onwards, which should ensure healthy equity returns going forward,” ICICI Direct said in a note.
It has a one year forward Nifty target of 27,000 levels (22x PE on FY27E).
Since last Diwali in October 2024, the Nifty 50 has delivered negligible returns. This Diwali 2025, the special ‘Muhurat Trading’ session will be conducted on Tuesday, October 21, between 1:45 pm and 2:45 pm.
ICICI Direct has released its Muhurat trading picks for Diwali 2025. These stocks to buy include HDFC Bank, Larsen & Toubro (L&T), Data Patterns (India), and five others. Here are Diwali picks for 2025.
Muhurat picks for Diwali 2025
HDFC Bank | Buy | Target Price: ₹1,150
Given RoA at ~1.8% and revival in credit growth, ICICI Direct values standalone HDFC Bank at 2.5x FY27E BV and ₹243 for subsidiaries. It has a ‘Buy’ rating on the stock, with HDFC Bank share price target of ₹1,150.
Credit Access Grameen | Buy | Target Price: ₹1,600
ICICI Direct said the signs of continued revival in performance with visibility on pick-up in business growth as well as subsiding of stress bodes well for earnings. While reiteration of guidance induces confidence, the regional collection trend remains watchful. Anticipating further revival in H2FY26, the brokerage firm values Credit Access Grameen shares at ~2.7x FY27E BV, assigning a target of ₹1,600. It recommends ‘Buy’ rating on Credit Access Grameen stock.
Larsen and Toubro | Buy | Target Price: ₹4,500
The brokerage firm believes given the backlog growth and pick up in execution there remains a strong revenue growth over the medium term. With continued focus on improvement of overall return ratios and aspiration of 18% ROE by 2026E looks probable.
ICICI Direct assigns ‘Buy’ rating on L&T shares with a target price of ₹4,500 (SoTP based), wherein option value in the form of stakes in IT companies (LTIMindtree and L&T Technology Services) and L&T Finance can also add to upside.
AIA Engineering | Buy | Target Price: ₹4,060
AIA Engineering is taking the right steps which will enable it to deliver growth, ICICI Direct said, as it expects the company’s revenue, EBITDA and PAT to grow at 7.3%, 7.3% and 9.2% CAGR over FY25-27E. It recommends buying AIA Engineering shares with a target of ₹4,060, based on 30x FY27E EPS.
Allied Blenders & Distillers | Buy | Target Price: ₹640
Riding on premiumisation strategy, Allied Blenders & Distillers’ revenues and PAT is expected to grow at CAGR of 14% and 36% respectively over FY25-28E. The brokerage assigns ‘Buy’ rating on the stock with a target price of ₹640, valuing at 42x average FY27-28E EPS of ₹15.2.
Kaynes Technology | Buy | Target Price: ₹8,900
Kaynes Technology share price target price is ₹8,900, implying 67x FY28E EPS, reflecting its premium positioning versus peers and long-term growth visibility.
Data Patterns | Buy | Target Price: ₹3,560
Strong order-backlog, improving execution and robust pipeline provides healthy growth visibility for the coming period for Data Patterns (India). ICICI Direct assigns a ‘Buy’ rating on Data Patterns shares with target price of ₹3,560 per share (based on 50x FY28E EPS).
Greenlam Industries | Buy | Target Price: ₹300
Given the strong earnings growth, the brokerage expects return ratios of Greenlam Industries to reach respectable mid teen levels from single digits currently. It assigns a ‘Buy’ rating with target of ₹300 (30x FY28 P/E).
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.
