Indian equities are heading into Samvat 2083 with investors weighing earnings growth, global uncertainties and the possibility of a broader recovery in domestic consumption and capital expenditure. While the near-term market trajectory may remain uneven, HDFC Securities sees opportunities in companies with strong order books, capacity expansion plans, improving operating efficiencies and sector-specific growth triggers.
In its Diwali 2026 investment strategy, the brokerage has identified 10 stocks across large-cap, mid-cap and small-cap segments, spanning sectors such as cement, power, defence, automobiles, metals, pharmaceuticals and infrastructure. The brokerage believes stock-specific opportunities, rather than a broad-based market rally, could reward investors over the coming year. Its recommendations carry a target horizon of one year, until the next Diwali.
Here are the brokerage's key picks and the investment rationale behind them.
HDFC Securities is positive on Ambuja Cement's capacity expansion plans and the potential for margin recovery. The company is targeting capacity additions of 10 million tonnes per annum (MTPA) in FY27, taking its installed capacity to 119 MTPA, with further expansion expected to take it to 134 MTPA by FY29-end. The brokerage expects an 8 percent volume CAGR over FY26-29.
It also expects higher blended cement sales, increased green power usage and lower logistics costs to support profitability. The brokerage estimates consolidated volume and EBITDA CAGR of 8 percent and 17 percent, respectively, over FY26-28.