In anticipation of Diwali, major domestic brokerages have curated a list of more than two dozen stocks for long-term investors. Analysts from Axis Securities, HDFC Securities, JM Financial Limited (JMFL), and Ventura Securities have carefully examined companies across diverse sectors and market cap segments, including large-cap, mid-cap, and small-cap stocks.

These recommendations cover finance, pharmaceuticals, IT, public sector units (PSUs), and FMCG, offering a strategic mix of growth potential. With a suggested investment horizon of 6 to 30 months, these stocks present valuable opportunities for investors to strengthen their portfolios during the festive season.

Leading Brokerages Unveil Top Long-Term Investment Picks For Diwali

As the Diwali season approaches, a period traditionally associated with prosperity and new beginnings, major domestic brokerage firms are offering valuable insights into large-cap stocks that hold promise for long-term investments. Investors looking to enhance their portfolios should consider the following recommendations:

Axis Securities Key Picks:

• Inox Wind (Target Price: ₹270): Inox Wind, recognized for its renewable energy solutions, is viewed as a strong investment opportunity in the green energy sector.
• KPIT Technologies (Target Price: ₹2,150): As a leader in automotive software solutions, KPIT Technologies is well-positioned to capitalize on increasing technology investments.
• Lupin (Target Price: ₹2,600): This pharmaceutical giant is anticipated to grow significantly due to the global demand for healthcare solutions.
• Indian Hotels Company Ltd (IHCL, Target Price: ₹800): IHCL is set to benefit from the resurgence in tourism as the hospitality sector rebounds post-pandemic.
• UNO Minda (Target Price: ₹1,090): A frontrunner in the auto components market, UNO Minda is poised for growth as automotive demand recovers.

HDFC Securities Recommendation:

• National Aluminium Company (NALCO, Target Price: ₹270): NALCO, a leading aluminum producer, is expected to thrive on increased demand from the construction and automotive industries.

Ventura Securities Recommendations:

• Tejas Networks (Two-Year Target: ₹1,850): Tejas Networks, a telecom equipment manufacturer, is anticipated to benefit from expanding digital infrastructure.
• Hindustan Zinc (24-Month Target: ₹680): With a strong foundation in mineral production, Hindustan Zinc is well-positioned to meet rising demand for base metals.

Angel One’s Key Recommendations:

• Dixon Technologies (Target Price: ₹19,070): As an electronic manufacturer, Dixon Technologies is likely to gain from India’s push for domestic electronics production.
• Torrent Power (Target Price: ₹2,300): Torrent Power is recommended for its consistent earnings and stability within the energy sector.
• Blue Star (Target Price: ₹2,570): With increasing demand in the air conditioning and refrigeration market, Blue Star is set for growth.
• Persistent Systems (Target Price: ₹7,040): As a tech company focused on digital transformation, Persistent Systems is well-positioned to benefit from rising market demands.
• Cummins India (Target Price: ₹4,840): Known for its power solutions, Cummins India is expected to capitalize on infrastructure development.
• Colgate-Palmolive India (Target Price: ₹4,590): This household name in consumer goods remains a stable investment option due to its brand loyalty.

JM Financial’s Recommendations:

• Power Grid Corporation of India (Target Price: ₹383, 6-12 Month Horizon): Power Grid is anticipated to thrive from ongoing infrastructure investments in energy transmission.
• Jindal Steel and Power (JSPL, Target Price: ₹1,150): JSPL’s revenue is projected to increase by 19% as demand in construction and manufacturing rises.
• National Aluminium Company (NALCO, Target Price: ₹264, 6-12 Month Horizon): JM Financial shares a positive outlook on NALCO, reaffirming its growth potential amidst rising metal demand.
• Macrotech Developers (Target Price: ₹1,480): Expected to rise by 23%, Macrotech Developers will benefit from the resurgence in the real estate sector.

These large-cap stock recommendations provide promising investment avenues for those looking to build wealth over the long term.

Mid-Cap Stock Highlights for Diwali

In addition to large-cap stocks, mid-cap stocks are also gaining attention from analysts for their growth potential this Diwali. Here’s a summary of recommended mid-cap picks:

Axis Securities Highlights:

• Gravita India (Target Price: ₹3,000): With a ‘buy’ rating, Gravita India is forecasted to see a 38% upside. JM Financial echoes this sentiment, targeting ₹3,068 for a 21% gain within a year.
• H.G. Infra Engineering (Target Price: ₹1,700): Positioned for steady growth, H.G. Infra is recommended as a long-term investment.

HDFC Securities Picks:

• JK Lakshmi Cement (Target Price: ₹936): The anticipated growth in cement demand positions JK Lakshmi Cement favorably. This is with a one-year target set at ₹936.
• Navin Fluorine International (Target Price: ₹3,948): This specialty chemicals company is projected to grow significantly. Where its target price is set at ₹3,948.

Angel One’s Recommendations:

• Mahanagar Gas Ltd (MGL, Target Price: ₹2,310): MGL, which distributes natural gas, is expected to benefit from rising energy demands.
• Neuland Laboratories (Target Price: ₹19,580): This pharmaceutical firm shows substantial growth potential, targeting ₹19,580.
• eClerx Services (Target Price: ₹3,700): Recognized for its solid business model, eClerx is anticipated to reach a target of ₹3,700.
• Praj Industries (Target Price: ₹940): Praj Industries is recommended for its engineering expertise, targeting ₹940.
• Time Technoplast (Target Price: ₹550): Specializing in polymer products, Time Technoplast is recommended, targeting ₹550.
• Jyothy Labs (Target Price: ₹680): With a solid market position, Jyothy Labs has a target of ₹680. at the same time, HDFC Securities suggests a one-year target of ₹600.
• NCC Ltd (Target Price: ₹400): As a construction company, NCC Ltd. shows strong potential with targets set at ₹400 by Angel One and ₹363 by HDFC Securities.
• Vesuvius India (Target Price: ₹6,770): Vesuvius, a leader in manufacturing refractory solutions, is forecasted for growth and targets ₹6,770.

JM Financial’s Recommendation:

• Olectra Greentech (Target Price: ₹2,200): Focused on electric vehicle manufacturing, Olectra Greentech is positioned for significant growth as demand for EV solutions rises.

Small-Cap Stock Recommendations

For those with a long-term investment horizon, small-cap stocks are also being highlighted for their substantial growth potential:

• Arvind Smartspaces (Target Price: ₹1,085): Axis Securities recommends buying Arvind Smartspaces, a real estate development company, with a long-term target price of ₹1,085, benefiting from urban housing demand.
• Fino Payments Bank (Target Price: ₹856): Ventura Securities suggests investing in Fino Payments Bank shares, aiming for ₹856 over a 24-30 month period. The bank focuses on digital banking solutions, particularly in underserved rural areas.

These recommendations across various stock categories present promising investment opportunities for those looking to grow their wealth this festive season.

(Disclaimer: The opinions/ suggestions/ recommendations presented in this article are exclusively those of investment experts.)