Religare Broking has released its highly anticipated list of top stock picks for Diwali 2026, featuring eight companies poised for significant growth. Mahindra & Mahindra (M&M) stands out with the highest projected upside, alongside other prominent names such as Glenmark Pharmaceuticals, Tata Power, and Bajaj Finance.
Top Picks for Diwali 2026
The domestic brokerage firm has assigned 'BUY' ratings to most of its selections, outlining specific target prices and estimated upside potentials for investors looking for long-term value.
Mahindra & Mahindra (M&M)
M&M leads the pack with an impressive 54.1% upside potential. Religare has maintained a 'BUY' rating, setting a target price of Rs 4,377 against its current market price of Rs 2,840. The company's strong fundamentals underpin this optimistic outlook.
Glenmark Pharmaceuticals
Religare has initiated coverage on Glenmark Pharma with a 'BUY' rating, projecting a 26% upside to a target price of Rs 2,897 from Rs 2,299. The brokerage highlights Glenmark's robust specialty medicines portfolio, established respiratory franchise, global presence, and promising innovation pipeline as key growth drivers.
Tata Power
Tata Power is another strong recommendation, receiving a 'BUY' rating with a target price of Rs 421, indicating a 22% upside. Analysts anticipate the company's profit after tax (PAT) to achieve a compound annual growth rate (CAGR) of 25% between FY26 and FY28E. This growth is expected to be fueled by expanding renewable energy capacity, increased contributions from solar manufacturing, and stable regulated earnings.
Bajaj Finance
Bajaj Finance enters Religare's coverage with a 'BUY' rating and a target price of Rs 1,096, suggesting a 16.7% upside. The brokerage forecasts CAGRs of approximately 19% in net interest income (NII), pre-provision operating profit (PPoP), and PAT over FY26-FY28E. This growth is attributed to sustained assets under management (AUM) expansion, a diversified lending portfolio, and operational efficiencies, though disciplined underwriting remains crucial.
Larsen & Toubro (L&T)
L&T has been assigned a 'BUY' call with a target price of Rs 4,510, implying a 16.5% upside. The construction giant's record order book provides excellent revenue visibility and offers exposure to India's infrastructure capital expenditure cycle and increasing global energy investments. Religare expects an 18.4% CAGR in owners' PAT from FY26-FY28E, driven by execution-led growth and margin improvements.
Kotak Mahindra Bank
With an 'Accumulate' rating, Kotak Mahindra Bank has a target price of Rs 518, indicating a 12.2% upside. Religare projects CAGRs of 23.8% in NII, 19.7% in PPoP, and 22.4% in PAT for FY26-FY28E, supported by robust advances growth, potential recovery in net interest margins (NIMs), and operating leverage.
HCL Technologies
HCL Technologies receives a 'BUY' rating and a target price of Rs 1,680, with a 17.6% upside potential. Religare points to the IT company's strong deal pipeline, growing artificial intelligence (AI) revenues, improving margins, and diversified technology portfolio as key factors for medium-term growth. However, moderate organic growth and cautious discretionary spending pose near-term challenges.
Indian Hotels Company (IHCL)
IHCL is another 'BUY' initiation, targeting Rs 990 for a 22% upside. The brokerage highlights the company's strong brand portfolio, sustained hospitality demand, asset-light expansion strategy, and increasing management fee income. The proposed merger of Oriental Hotels, effective April 1, 2027, is expected to further strengthen growth, though rising operating costs and seasonality present risks.
Disclaimer: This report provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.