Indian equities enter Samvat 2083 with investors looking for companies that can deliver earnings growth amid an uncertain macroeconomic environment. ICICI Direct’s Diwali stock picks span banking, pharmaceuticals, ports, defence, chemicals and consumption, with the brokerage betting on a mix of established franchises and businesses entering new growth phases.
The brokerage has assigned Buy ratings to 10 stocks, citing triggers such as margin recovery at banks, niche product launches in pharmaceuticals, rising infrastructure spending and the gradual monetisation of digital businesses. Here are its picks and target prices for the year ahead.
ICICI Direct expects Kotak Mahindra Bank’s margins to recover from their recent lows, aided by the deployment of surplus FCNR(B) liquidity into loans, lending-rate transmission and a better mix of higher-yielding retail products. The bank’s asset quality remains healthy, with gross NPAs at 1.04 percent and credit costs at 35 basis points. The appointment of Anup Saha as MD and CEO from January 2027 is also expected to provide leadership continuity. The brokerage expects advances to grow 20–22 percent over FY27–28.
The stainless-steel pipes and tubes maker is expanding beyond traditional end-user industries into data centres, semiconductors and nuclear power. ICICI Direct sees its Rs 600-crore order book, including a letter of intent worth Rs 185 crore from a data centre player, supporting growth. New fitting and spooling facilities, higher utilisation and debt reduction following a preferential share allotment are expected to improve margins and reduce interest costs.
Zydus is looking to sustain growth through niche launches across the US, India and other markets, including differentiated products and specialty pharmaceuticals. Management has guided for high-teen revenue growth in FY27 and EBITDA margins above 24 percent. The brokerage also sees potential from acquisitions such as Amplitude Surgical and Assertio, while the rare and orphan disease segment could provide a longer-term growth opportunity.