Diwali dhamaka stocks: Eternal, ICICI Bank, among 10 with upside of up to 34%
Written by Veer Sharma, ETMarkets.com|Nov 04, 2026, 10:19:14 AM IST1/11Festive betsSamvat 2083 has begun on a cautious note, with an external energy shock weighing on market sentiment despite the resilience of the…
Festive bets
Samvat 2083 has begun on a cautious note, with an external energy shock weighing on market sentiment despite the resilience of the domestic economy. The West Asia conflict has kept Brent crude prices above $100 per barrel, pushing CPI inflation to 5.54% in September and prompting a 25 basis points repo rate hike to 5.50%. However, JM Financial has picked 10 stocks with strong upside potential to buy this Diwali.
ICICI Bank
With a target price of Rs 1,710, JM Financial forecasts 24% upside from current levels. Bank continues to deliver sector-leading loan growth, healthy fee traction and best-in-class asset quality, while nearterm NIM pressure from FCNR(B) should ease as surplus liquidity is deployed from Q4FY27. Management expects NIMs to moderate further in Q3FY27, with recovery expected from Q4FY27, even without further rate hikes.
Agencies3/11Bharat Electronics
With a target price of Rs 485, the brokerage forecasts over 30% upside from current levels. BEL remains well positioned to benefit from several large strategic defence programs, including QRSAM, NGC, P-75I, Next Generation Corvettes, Project Kusha, AMCA, HAMMER, Shatrughat &Samaghat and Shakti Phase-IV. Management maintained its FY27E guidance of 15%+ revenue growth and 28%+ EBITDA margin and a five-year plan to indigenise all imported sub-systems.
Eternal
The brokerage has pegged the target at Rs 400, an upside of 22% from current levels. Blinkit is evolving beyond a grocery-led quick-commerce platform as its strategy is increasingly focused on capturing a larger share of household consumption from traditional e-commerce through a broader assortment, including electronics and appliances. Rising SKU depth, dark-store density and supply-chain execution create a physical infrastructure moat that new entrants may find difficult to replicate quickly.
Bharti Airtel
The brokerage has pegged the target at Rs 2,400, an upside of 23% from current levels. After years of elevated capital spending for 5G network expansion, Airtel’s capex intensity is declining due to completion of 5G rollouts and optimization of radio network investments, while incremental spending will focus selectively on transport networks, home broadband, enterprise, and data centers. Lower Capex Intensity is expected to fuel Strong FCF growth strengthening the balance sheet.
Power Grid Corp
The brokerage has pegged the target at Rs 290, an upside of 15% from current levels. Power Grid’s Rs 370 bn capex and INR 300 bn capitalisation targets for FY27 will steadily expand its regulated equity base, ensuring an assured, annuity-style 15.5% post-tax RoE under CERC norms. Execution is backed by an Rs 1.75 lakh crore work-in-hand backlog alongside Rs 73,400 crore in active tenders, securing multi-year regulated earnings growth and dividend stability.
Sterlite Technologies
The brokerage has pegged the target price at Rs 1,020, an upside of 16% from current levels. The brokerage said Multiyear growth visibility is exceptionally strong, backed by a record Rs 35,274 crore order backlog (up 4.6xFY26 order backlog), anchored by a 1.2 billion multi-year hyperscaler order win (CY26-30) and a landmark $1.11 billion(FY27-29) AI data center contract along with large domestic telecom order.
Gravita
The brokerage has pegged the target price at Rs 1,800, an upside of 34% from current levels. The recent capacity expansion for its core lead recycling vertical and entry into copper recycling (through acquisition of Rashtriya Metal) makes it well placed to sustain superior growth in the recycling sector. Under VISION 2030, Gravita targets a 20-25% volume CAGR, 30-35% profitability growth and ~25% ROIC, driven by expansion in core recycling and new verticals (copper, rubber, steel).
Emcure Pharmaceuticals
The brokerage has pegged the target price at Rs 2,362, an upside of 26% from current levels. International segments exhibit high-velocity momentum, evidenced by explosive expansions in Europe (+33%) and Canada (+25%). Growth is insulated by high barriers to entry, focusing on technology-driven, complex generics like liposomal amphotericin rather than commoditised products. A robust product pipeline and consistent geographic diversification provide resilient, multi-year revenue compounding independent of domestic market dynamics.
ANI10/11L&T
The brokerage has pegged the target price at Rs 4,615, an upside of 21% from current levels. Record Q2FY27 order inflows of Rs 1.48 lakh crore and a Rs 8.54 lakh crore order book provide strong multi-year execution visibility, with an average execution period of 33 months. International orders comprise 54% of backlog and 60% of H1FY27 inflows, strengthening global diversification. A sizable Rs 10.3 lakh crore H2FY27 opportunity pipeline across infrastructure, conventional/green energy and manufacturing supports sustained order momentum, though conversion and execution remain key monitorables.
ETMarkets.com11/11Tata Steel
With a target price of Rs 195, JM Financial analysts forecast 15% upside potential in the stock. Tata Steel is preferred bet in the metal space given safeguard duty and recent domestic steel price hikes would mean above average EBITDA margin for India business along with 6-7% volume CAGR over FY27E-28E. This would mean sustainable annual EBITDA of Rs 38,000-40,000 crore, the brokerage said.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
