Top Diwali Stock Picks for Samvat 2081: Motilal Oswal Recommends ICICI Bank, L&T, Zomato, and More

As Diwali marks the start of a new financial year in the Hindu calendar, Motilal Oswal has identified ten standout stocks for Samvat 2081 that investors can consider for potential growth. According to the brokerage, these picks are strategically selected to capitalize on expected cyclical gains across key sectors like Financials, Consumption, Industrials, Technology, and Healthcare. Here’s a look at Motilal Oswal's recommended stocks for the upcoming year.

1. ICICI Bank

ICICI Bank remains a top recommendation from Motilal Oswal due to its resilient earnings growth of 15% year-over-year and diverse business operations, including robust growth in Business Banking and SME sectors. The bank’s well-rounded portfolio in high-yielding assets positions it as a strong candidate for sustained growth.

2. Larsen & Toubro (L&T)

L&T is another recommended buy, with a focus on new opportunities such as offshore wind projects. The company recently secured a significant order, positioning it at the forefront of green infrastructure projects. With a consistent return on equity target of 18%, L&T remains well-suited for investors looking for industrial growth.

3. Zomato

Zomato has evolved beyond food delivery, building a brand across food, grocery, and experiential dining. With strong growth in its Blinkit segment, the brokerage projects robust revenue growth for Zomato, forecasting a compound annual growth rate (CAGR) of 20% from FY24 to FY27.

4. Titan

Titan’s dominance in the branded jewellery segment through Tanishq and its expansion into Mia and CaratLane makes it an attractive pick. With plans to open 40-50 Tanishq outlets this year and transform store formats, Titan is on track to achieve a price target of ₹4,300 by next Diwali.

5. IPCA Laboratories

With a focus on Active Pharmaceutical Ingredients (APIs) and generic formulations, IPCA expects strong earnings growth, supported by the domestic formulation market's 14% CAGR and a revived US generics segment. The Unichem acquisition and improved compliance standards make IPCA a favourable choice in the healthcare sector.

6. Angel One

Angel One’s expansion into credit products and wealth management has resulted in a 39% year-over-year profit increase. With a target price of ₹4,100, the brokerage believes Angel One’s diversified portfolio can maintain growth momentum through enhanced asset quality and operational efficiency.

7. Five Star Business Finance

Five Star is projected to achieve a 35% growth in assets under management (AUM) in FY25, supported by competitive lending rates and strong asset quality. The company’s focus on digital collection efficiencies positions it well for premium valuations and stable returns.

8. Amber Enterprises

Amber’s expansion in electronics, particularly in Room Air Conditioners (RACs), has positioned it for a CAGR of 21% through FY24 to FY27. By diversifying its client base across consumer electronics, Amber is set to capitalize on growing market opportunities.

9. Zen Technologies

Zen Technologies, an industry leader in anti-drone technology with 150+ patents, continues to innovate in training and counter-drone solutions. With the brokerage forecasting a price target of ₹1,900, Zen is well-placed to meet defence needs and expand its market presence.

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Motilal Oswal's recommendations underscore a strategy focused on steady earnings and growth through diversified investments. As the global market navigates uncertainties, these Diwali picks aim to offer Indian investors balanced exposure across promising sectors.

[Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform independent research and consult with financial advisors before making any investment decisions.]