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JM Financial Services Reveals Top Diwali Stock Picks for 2025 with Potential Upsides
As the festive season of Diwali 2025 approaches, JM Financial Services (JMFS) has unveiled its eagerly awaited list of top Diwali stock picks. This portfolio features 12 promising companies from key sectors like consumer durables, banking, healthcare, metals, and automobiles. The analysis highlights high-quality stocks with potential upsides reaching up to 31%, including Maruti Suzuki, Fiem Industries, Axis Bank, Apollo Hospitals, Lloyds Metals, and Eureka Forbes.
In Samvat 2082, these stocks are anticipated to deliver substantial returns due to their strong fundamentals. As Muhurat trading in 2025 nears, these recommendations from JMFS offer a valuable opportunity for investors aiming to build long-term wealth this Diwali.
The following table showcases the 12 stocks recommended by JM Financial Services as top Diwali picks:
| Company | Sector | CMP (Rs) | TP (Rs) | Upside (%) |
|---|---|---|---|---|
| Maruti Suzuki India | Auto | 16,325 | 19,000 | 16% |
| Fiem Industries | Auto Ancillary | 1,960 | 2,400 | 22% |
| Axis Bank | Banks | 1,190 | 1,330 | 12% |
| IIFL Finance | NBFC | 492 | 600 | 22% |
| L&T Finance | NBFC | 267 | 300 | 12% |
| Apollo Hospitals Enterprise | Hospital | 7,677 | 9,000 | 17% |
| Lloyds Metals & Energy | Metals | 1,318 | 1,680 | 28% |
| Ratnamani Metals & Tubes | Metals | 2,324 | 2,900 "Maruti is our top pick in auto space and we recommend Buy with target price of Rs19,000 (valued at 28x FY27E EPS). Key Risk: 1) Increase in competitive intensity could impact volume/margin, 2) Supply disruption risk of critical inputs, 3) Weak response to new PV launches, 4) Weaker-than expected exports growth given geopolitical uncertainties," said JM Financial Services. "We recommend Buy on Fiem with target price of Rs2,400 as valuation of 16x FY27E EPS seems attractive given its earning is expected to clock a robust 20-22% CAGR over FY2527E along with RoE of 21%. Key Risk: 1) High reliance on few key clients poses significant revenue concentration risk. 2) Slowdown in ICE/ EV 2W sales," the brokerage said in a note. "We expect loan CAGR of ~12% during FY25-27E with avg. RoE of ~14% during FY26/27E. The stock trades at relatively inexpensive valuation of ~1.4x FY27E BVPS. Maintain BUY with a target price of Rs1,330, valuing the core bank at 1.7x FY27E BVPS. Key Risk: Higher than expected NIM margin decline," as per the brokerage. "In our base case assumption of valuation converging to average long-term P/BV multiple of 1.7x and book value of Rs360 (based on Bloomberg consensus estimate) would give fair value of Rs600. Key Risk: Continuation of higher-than-expected Credit cost," said JM Financial Services. "We expect LTF ROAs to structurally move above 2.7% due to better metrics of retail business, we value LTF at 2.2x FY28E P/BV, giving it a TP of INR 300/Share. Key Risk: Resurfacing of asset quality concern," the brokerage commented. "We value Apollo Hospitals on a sum-of-the-parts (SOTP) basis and deriving a target price of Rs9000. Key Risk: Slower-than-anticipated expansion of bed capacity or a delayed ramp-up in occupancy. Regulatory risks driven by increasing public concern over healthcare inflation," stated JM Financial Services. "We Reiterate BUY on Lloyds Metals with target price of Rs1,680 (6.5x FY28E EBITDA for core iron ore + MDO business valued at 7x FY28E EV/EBITDA + CWIP of Rs11,000 crore). Key Risk: Decline in Iron ore prices Delay in ramp up of volumes. Delay in commissioning of key downstream projects," commented JM Financial Services. "We recommend Buy on Ratnamani Metals with a target price of Rs2900 (valued at 25x FY28E EPS). Key Risk: Postponement in project execution might lead to lower demand for the company's products. Recessionary headwinds across global markets could impact the company's business prospects," JM Financial Services said in a report. "We assign a Buy rating to the stock with a target price of Rs460, valuing India Multichannel/ GlobalBees Brands/Others at 35x/30x/20x FY27E Pre-Ind AS adjusted EBITDA respectively while applying a 1.5x FY27E sales multiple to the International segment. Key Risk: COCO store expansion may cannibalize existing footprint Execution challenges in the International segment and Increased competition from QC players or Meesho could erode market share," commented JM Financial Services. "The company plans to expand data center capacity from 28 MW to 63 MW by FY27 and 307 MW by FY32 targeting Rs1200 crore and Rs9000 crore revenue driven by digital growth and supportive policies. Key Risk: Delay in launch of real estate project could impact valuation competition in data center resulting into lower profitability," the brokerage added. "The company intends to improve its financial performance mainly through sustained volume-led growth higher spend in growth initiatives like advertising and promotion and improving in-store and digital presence. The company plans to expand its margin through operating leverage a better product mix and greater OpEx efficiencies shared services process automation logistics/IT cost). The company is expected to clock a PAT CAGR of36% over FY2025-2027E.The stock trades at36xFY2027EPS.KeyRisk:CompetitionfromdomesticandinternationalbrandsAvailabilityofcounterfeitproducts.Inabilitytoprovidesatisfactoryafter-salesserviceasperthebrokerage." "The company is expected clock a Revenue/PAT CAGR of13%/18%overFY25-28E.Wevaluethebusinessatt55xSep'27EEPS(10%below5-yearaverage)toarriveatapricetargetofRs1600.Thevaluationreflectsthecompany'ssuperiormarginsinthepipessegmentpotentialforfurthermarginexpansionthroughbackwardintegrationstronggrowthmomentumintheadhesivesbusinessandasolidbalancesheet.KeyRisk:RisingcompetitiveintensityinCPVCpipesExecutionriskinCPVCresinmanufacturingSlowerramp-upinadjacenciesasperJMFinancialServices." The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred to as "we"). We do not guarantee endorse or take responsibility for the accuracy completeness or reliability of any content nor do we provide any investment advice or solicit the purchase or sale of securities.All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions. Notifications Settings Clear Notifications Notifications Use the toggle to switch on notifications
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