HDFC Securities Reveals MoneyFest Diwali 2025 Portfolio with Ten Promising Stock Picks

HDFC Securities has unveiled its MoneyFest Diwali 2025 portfolio, featuring ten promising stock picks anticipated to yield significant returns over the next year. This selection coincides with Muhurat Trading and the onset of Samvat 2082. The portfolio spans sectors like power, telecom, financials, and consumption, including major players such as Larsen & Toubro, Bharti Airtel, and JSW Energy, alongside rising stars like Associated Alcohols, Happy Forgings, and Northern Arc Capital.

According to HDFC Securities, "We expect markets to deliver selective, stock-specific returns as valuations remain stretched in pockets despite a broader market correction. We maintain a predilection for domestic consumption-oriented businesses, financials, and the power and engineering sectors. Our meticulously constructed portfolio of ten stocks-comprising four established mega-caps and six emerging companies-presents compelling investment opportunities underpinned by robust fundamentals and attractive valuations, positioned to generate superior returns. Following a turbulent year, investors may anticipate a more stable environment that rewards disciplined, bottom-up stock selection."

Larsen & Toubro is poised for growth with a strong order book worth Rs 6.1 lakh crore. The company benefits from a mix of domestic and international projects. International orders, especially from the Middle East, now constitute nearly half of its backlog. HDFC Securities recommends buying this stock with a target price of Rs 4,243 (25x FY27E EPS) until next Diwali.

Bharti Airtel has solidified its position in India's telecom sector with favourable market conditions. The company has reported a consolidated revenue/EBITDA/PAT CAGR of approximately 15%/14%/17% over FY25-27E. The brokerage suggests purchasing Bharti Airtel shares with a target price of Rs 2,244 (35.5x FY27E EPS) until next Diwali.

Happy Forgings is expanding its operations globally and has significant growth potential. HDFC Securities advises buying this stock with a target price of Rs 1,083 (33x FY27E EPS) until next Diwali. Meanwhile, Northern Arc Capital is recommended for purchase with a target price of Rs 333.5 (1.25x FY27E P/B) until next Diwali.

Associated Alcohols & Breweries has shown strong revenue/EBITDA/PAT CAGR over the past decade. Despite recent margin pressures due to raw material costs, improvements are expected as prices stabilise. HDFC Securities recommends buying this stock with a target price of Rs 1,182 (20x FY27E EPS) until next Diwali.

Financial Sector Insights

IDFC First Bank continues to enhance its performance through retailisation strategies. The bank's wholesale book share has decreased to 19%, while new retail products support NIMs. HDFC Securities suggests buying IDFC First Bank shares with a target price of Rs 88.5 (1.5x FY27E P/B) until next Diwali.

MSTC holds an advantageous position in vehicle scrapping due to its near-monopolistic status. The company has achieved a consolidated revenue/EBITDA/PAT CAGR of approximately 14%/12%/20% over FY25-27E. Investors are advised to buy MSTC shares with a target price of Rs 673 (17x FY27E EPS) until next Diwali.

Power Sector Prospects

JSW Energy focuses on achieving EBITDA targets while maintaining prudent debt levels. The company expects Revenue/EBITDA/PAT growth at 49.3%/62.3%/26.4% CAGR over FY25-FY27E. HDFC Securities recommends purchasing JSW Energy shares with a target price of Rs 639 (36x FY27E EPS) until next Diwali.

Pidilite Industries has experienced steady volume growth due to strong domestic demand and brand recall. The company is expected to register revenue growth of 11.2% and PAT growth of 13.5% CAGR between FY25-27E. HDFC Securities advises buying Pidilite Industries shares with a target price of Rs 1,717 (65.5x FY27E EPS) until next Diwali.

Consumer Goods Outlook

Sheela Foam anticipates Revenue/EBITDA/PAT CAGR of 9%/26%/39% over FY25-28E due to synergy benefits from acquisitions and stable raw material prices. The company aims to improve margins without sacrificing profitability growth. HDFC Securities suggests purchasing Sheela Foam shares with a target price of Rs 837 (34.5x FY28E EPS) until next Diwali.

The recommendations provided by analysts are based on their individual assessments and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited ("we"). We do not guarantee the accuracy or completeness of any content nor offer investment advice or solicit securities transactions.