Leading brokerage Motilal Oswal has released its highly anticipated list of top 10 stock picks for Diwali 2026, highlighting companies with significant growth prospects, improving profitability, and strategic expansions. The identified stocks span various sectors and offer potential upsides of up to 41% from their current market prices, according to the firm's analysis.
The comprehensive list includes prominent names such as Adani Ports, Eternal, Titan, Unimech Aerospace, Kotak Mahindra Bank, BSE, SPR Auto Components, Shaily Engineering, Arvind, and Symbiotec Pharmalab. Motilal Oswal's selections are based on detailed assessments of each company's fundamentals and future outlook.
Key Stock Picks and Rationale
Adani Ports
Motilal Oswal has set a target price of Rs 2,130 for Adani Ports, suggesting a 15% upside potential. The brokerage emphasizes significant visibility from port capacity additions, infrastructure projects, and global acquisitions. Cargo volumes are projected to grow at a 14% CAGR over FY26-28E, with revenue, operating profit, and net profit expected to see CAGRs of 17%, 18%, and 21% respectively.
Eternal
With a target price of Rs 420, Eternal offers a potential upside of 22%. The firm notes Blinkit's ambitious store target, aiming for over 3,500 stores by FY27-end and around 5,000 by FY28-end, alongside stable food delivery margins. Revenue and net profit CAGRs are estimated at approximately 75% and 155% over FY26-28E.
Titan
Titan has a target price of Rs 6,000, indicating a substantial 35% upside potential. Motilal Oswal highlights the company's aggressive store expansion, reaching 3,551 stores by June 2026, and the growth contribution from non-jewellery businesses. Stable gold prices are expected to enhance margin visibility. Revenue, operating profit, and net profit are forecasted to grow at CAGRs of 17%, 21%, and 23% over FY26-29E.
Unimech Aerospace
The brokerage sees a 35% upside for Unimech Aerospace, setting a target price of Rs 2,138. A robust nuclear order book and diversification into semiconductors and oil & gas are key growth drivers. Revenue and net profit CAGRs are estimated at 75% and 69% over FY26-28E, with operating margins projected above 38%.
Kotak Mahindra Bank
Motilal Oswal has assigned a target price of Rs 500 for Kotak Mahindra Bank, implying an 8% upside. The recovery in margins as surplus foreign currency deposits are deployed and higher repo rates pass through to loan yields are key factors. Unsecured loan quality is improving, with net interest income and net profit CAGRs estimated at approximately 19.7% and 24.1% over FY26-28E.
BSE
BSE has a target price of Rs 4,000, suggesting a 14% upside. The brokerage points to growth beyond derivatives, including over 30% share of options premium turnover and around 9% cash market share. Recurring income from mutual fund and co-location services, along with an operating margin rise to over 65% in FY26, are positive indicators. A net profit CAGR of approximately 27% over FY26-28E is anticipated.
SPR Auto Components
This stock offers the highest potential upside at 41%, with a target price of Rs 6,150. Acquisitions contribute approximately 35% of revenue and boost content per vehicle. Multi-fuel adoption further adds to growth. A 21% net profit CAGR over FY26-29E is estimated, with core return on capital employed rising from 20% to 28%.
Shaily Engineering
Shaily Engineering has a target price of Rs 4,074, indicating a 29% upside potential. Consumer electronics and semiconductors are expected to add new growth avenues, with operating margins projected to exceed 32% by FY28E. Revenue and net profit CAGRs are estimated at 33% and 48% over FY26-28E.
Arvind
Motilal Oswal has set a target price of Rs 670 for Arvind, implying a 37% upside. The potential India-UK free trade agreement is seen as a significant lever. Management expects a stronger second half, with garments up around 15% and advanced materials over 18%. Revenue and net profit CAGRs are estimated at 18% and 30% over FY26-28E.
Symbiotec Pharmalab
With a target price of Rs 1,430, Symbiotec Pharmalab offers a 15% upside. Exports constitute 67% of FY26 revenue. Following Rs 1,670 crore of capital expenditure by FY27, the focus shifts to commercializing new capacity. Revenue and net profit CAGRs are estimated at 33% and 37% over FY26-29E, lifting return on equity to 17%.
Disclaimer: This article 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.