Top Diwali 2025 Picks: ICICI Bank, Varun Beverages, Finolex Among Nirmal Bang’s Favorites

With festive cheer returning to the markets, Nirmal Bang has unveiled eight Diwali picks for investors seeking steady compounding stories. The top calls cover heavyweight names like ICICI Bank and Tata Consultancy Services to consumer and manufacturing plays such as Varun Beverages, Finolex Industries, and Stove Kraft.

Let’s take a look at Nirmal Bang’s Diwali Muhurat stock recommendations: 

ICICI Bank: Brokerage recommends “Buy” with a target price of ₹1,631. Current price is ₹1,417. The bank maintains best-in-class asset quality (Gross NPA 1.67%, Net NPA 0.41%) and expects RoA/ROE of 2.3%/17% over FY26 - FY27. Strong cost discipline, fee income, and digital transformation initiatives support sustainable growth.

Tata Consultancy Services: Brokerage recommends “Buy” with a target price of ₹3,611. Current price is ₹2,971.8. TCS is strengthening its AI capabilities, supply-side restructuring, and data center expansion to capture new-age technology demand. Trading at 19x FY27E earnings, the company is well-positioned for margin sustenance and growth momentum.

Varun Beverages: Brokerage recommends “Buy” with a target price of ₹541. Current price is ₹461.5. International operations now contribute 26% of volumes, with strong growth from South Africa, Morocco, Tanzania, DRC, and Zambia. Expansion of snack offerings, backward integration, and distribution network support consistent double-digit growth.

Finolex Industries: Brokerage recommends “Buy” with a target price of ₹278. Current price is ₹191.2. The company is set to benefit from both rural and urban demand as it caters to the agriculture and housing sectors.

Its ongoing capacity expansion, disciplined pricing, and focus on operational efficiency are expected to enhance margins. ROCE at 27% in FY25 is likely to improve with business revival. Trading at a PE of 27.9x/22.1x on FY26E/FY27E, the stock remains at a discount to peers due to earnings volatility.

Diffusion Engineers: Brokerage recommends “Buy” with a target price of ₹466. Current price is ₹380.  The company is well-positioned for long-term growth, supported by capacity expansion, strong demand from the cement and steel sectors, and value-added engineering services.

With expected improvements in ROCE and EPS, the stock appears reasonably valued at a forward P/E of 24.6x FY27.

GSK Pharma: Brokerage recommends “Buy” with a target price of ₹3,425. Current price is ₹2,718.  GSK is expected to deliver steady revenue growth of 10% CAGR and profit after tax at 12% CAGR over FY25 - FY27, driven by general medicines, adult vaccination, and specialty launches. The stock trades at 40.6x FY27E EPS, offering a favorable entry point given potential margin expansion.

GNG Electronics: Brokerage recommends “Buy” with a target price of ₹482. Current price is ₹328.9. GNG is well-placed to capture ESG-driven and affordability-led IT demand globally. Revenues/EBITDA grew at 46%/59.5% CAGR during FY23-25, the company has strong partnerships across 38 countries, and the stock trades at 20.9x FY27E EPS.

Stove Kraft: Brokerage recommends “Buy” with a target price of ₹870. Current price is ₹691.5. Growth drivers include margin expansion, debt reduction, overseas business growth, and favorable consumption trends. Revenue is expected to grow at 13% CAGR and PAT at a 58% CAGR between FY25 and FY27.

Disclaimer: The views and opinions expressed are those of the SEBI-registered analyst/advisor mentioned in the article, and are not endorsed by Stocktwits. This is not investment advice. Please do your own research or consult a financial advisor.

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

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