Top 10 Diwali Stock Picks 2025 by HDFC Securities

October 17, 2025: Diwali is the perfect time to add value to your portfolio. With the auspicious festivities around, it is an excellent time for new investors to begin their investment journeys. While selecting stocks for your portfolio, you should take into account the fundamental strengths (and weaknesses) of the underlying companies.

HDFC Securities has curated a list of the top ten Diwali stock picks for you. These stocks are fundamentally strong and have the potential to provide a fair bit of return to the investors in the medium to long term.

Here are the top 10 Diwali Picks 2025

1. Associated Alcohols and Breweries:

This stock will provide you with exposure in the ever-expanding alcohol and breweries sector of India. AABL is focusing on premiumization, expansion into new geographies, and cost efficiencies through its integrated distillery and ethanol units. These strategies may help margins recover, and the medium to long-term growth expectations are largely positive due to the company’s fundamentals. Check Associated Alcohols Share Price

LTP: ₹1,010 | Target: ₹1,182 | Buy Range: ₹1,008-₹1,035

2. Bharti Airtel

Another critical part of the country’s telecommunication infrastructure, the stock is worth watching because of rising ARPU (Average Revenue Per User), tariff hikes, expansion in enterprise and African markets, and integration of Indus Towers, Airtel has multiple levers for revenue and EBITDA growth. Check Bharti Airtel Share Price

LTP: ₹1,955 | Target: ₹2,244 | Buy Range: ₹1,935-₹1,985

3. JSW Energy:

JSW Energy is well‐positioned in the energy transition play, with strong execution on renewable projects, long-term PPAs, and a disciplined approach to debt. Check JSW Energy Share Price

LTP: ₹544.5 | Target: ₹639 | Buy Range: ₹538-₹555

4. Larsen & Toubro (L&T):

A large and diversified order book, healthy project pipeline in infrastructure/hydrocarbon/energy, and improving margins make L&T a structural play in India’s capex cycle. Check Larsen & Toubro Share Price

LTP: ₹3,770 | Target: ₹4,243 | Buy Range: ₹3,760-₹3,818

5. IDFC First Bank:

The bank is shifting toward a more retail‐oriented model, improving its CASA ratio, and aiming for margin recovery, which could support earnings growth ahead. Check IDFC First Bank Share Price

LTP: ₹73.7 | Target: ₹88.5 | Buy Range: ₹73-₹75

6. Happy Forgings (HFL):

Backed by a strong order book, capex plans, and exposure to global industrial/automotive demand, Happy Forgings has scope to scale up in precision forging and machining. Check Happy Forgings Share Price

LTP: ₹921 | Target: ₹1,083 | Buy Range: ₹910-₹944

7. MSTC Ltd:

With a nearly monopolistic positioning in government e-commerce and recycling, and prospects in vehicle scrappage, MSTC offers exposure to asset-light, policy-linked growth. Check MSTC Share Price
LTP: ₹530 | Target: ₹673 | Buy Range: ₹525-₹548

8. Northern Arc Capital (NACL):

Northern Arc is a play on financial inclusion and credit distribution, with relatively strong asset quality and room to benefit from broader credit growth and lower rates. Check Northern Arc Capital Share Price

LTP: ₹270 | Target: ₹333.5 | Buy Range: ₹265-₹277

9. Pidilite Industries:

As a leader in adhesives and construction chemicals, Pidilite enjoys strong brand recall, stable demand linkage to real estate & consumer sectors, and opportunities for margin expansion. Check Pidilite Industries Share Price

LTP: ₹1,514 | Target: ₹1,717 | Buy Range: ₹1,500-₹1,550

10. Sheela Foam

Sheela Foam’s acquisition of Kurlon, synergy gains, favorable raw material trends, and a shift in business mix are expected to drive earnings acceleration and better margins.

LTP: ₹678 | Target: ₹837 | Buy Range: ₹678-₹698

The reason for selecting these stocks was their fundamental strength and the sectoral trends that are currently and will be favourable in the future. Check Sheela Foam Share Price