Abhishek Sinha
Ahead of Diwali and the start of Samvat 2082, domestic brokerage firm Nirmal Bang Institutional Equities has released its list of top 10 stock picks across sectors such as banking, defence, auto, FMCG, e-commerce, and hospitality.
The brokerage expects up to 35% upside potential in select counters over the next 12 months, with top recommendations including State Bank of India (SBI), Hindustan Aeronautics Ltd (HAL), Mahindra & Mahindra (M&M), Swiggy, and Blue Star.
🏦 1. State Bank of India (SBI)
Target Price: ₹1,040 | Upside: ~25%
With a balance sheet of ₹66.8 trillion and a loan book of ₹41.6 trillion (FY25), SBI remains India’s largest lender.
Nirmal Bang projects 11.8% loan CAGR and 9.7% earnings CAGR between FY25–FY27, with ROE expected at 15% by FY27.
The brokerage values SBI at 1.3x Sep 2027E ABV + ₹226.5/share from subsidiaries, maintaining a ‘BUY’ rating.
🚗 2. Mahindra & Mahindra (M&M)
Target Price: ₹4,042 | Upside: ~30%
The brokerage remains bullish on M&M citing robust SUV demand and a strong tractor portfolio.
It estimates 12% volume CAGR in autos and 10% in tractors, translating into an 18% revenue CAGR during FY25–27.
M&M is seen as a key beneficiary of the SUV-fication trend and rising rural consumption.
✈️ 3. Hindustan Aeronautics Ltd (HAL)
Target Price: ₹6,142 | Upside: ~35%
HAL’s order book of ₹2.5 trillion provides strong multi-year visibility.
Nirmal Bang expects 15% revenue CAGR and 19% PAT CAGR between FY25–FY27, driven by rising orders in fighters (LCA Mk1A), helicopters (LCH Prachand), and engines.
The stock trades at 26.6x forward P/E, above its five-year average, justifying a premium valuation.
🍔 4. Swiggy
Target Price: ₹544 | Upside: ~30%
Swiggy’s core food delivery business has achieved strong margin expansion in FY25, supported by disciplined discounting and rising ad revenues.
Instamart is expected to turn contribution-positive by FY27, while the Out-of-Home segment has already turned profitable.
Nirmal Bang forecasts 18% GOV CAGR and 67% EBITDA CAGR during FY25–27, backed by cost efficiencies and growing order volumes.
🍺 5. United Breweries (UBBL)
Target Price: ₹2,250 | Upside: ~28%
Under CEO Vivek Gupta, UBBL is investing heavily in premium brands, capacity expansion, and visi-cooler infrastructure.
Though margins may remain under pressure in the near term, the brokerage expects medium-term gains as these investments bear fruit.
The stock trades at ~34x FY27E EV/EBITDA, and Nirmal Bang maintains a ‘BUY’ rating.
❄️ 6. Blue Star
Target Price: ₹2,165 | Upside: ~20%
The consumer durable major is well-placed to benefit from the RAC (Room Air Conditioner) demand surge.
With strong fundamentals, 21% EPS CAGR and 18% post-tax RoCE expected by FY27, Blue Star is termed a long-term compounding story by the brokerage.
🏦 7. City Union Bank (CUB)
Target Price: ₹260 | Upside: ~22%
City Union Bank reported 16.1% YoY advances growth in Q1FY26, with steady progress in retail segments like LAP and affordable housing.
Nirmal Bang forecasts 14% loan CAGR and 13% earnings CAGR over FY25–27, expecting ROE of 12.9% by FY27.
🏍️ 8. ASK Automotive
Target Price: ₹632 | Upside: ~25%
The market leader in advanced braking systems for two-wheelers, ASK Auto is expected to deliver 16% revenue CAGR and 28% EBITDA CAGR over FY25–27.
Margin expansion is expected through higher ALPS segment contribution and better product mix.
The brokerage values the stock at 27x Sept’27E EPS with a ‘BUY’ rating.
🏨 9. Chalet Hotels
Target Price: ₹1,198 | Upside: ~30%
Chalet Hotels, part of the K Raheja Group, operates 3,351 rooms across 11 premium hotels under global brands like Marriott and Accor.
The company’s ownership-led growth model and diversification into commercial leasing and residential projects support sustained earnings visibility.
🪒 10. Gillette India
Target Price: ₹12,615 | Upside: ~25%
Gillette India continues to lead in the grooming segment, backed by new launches (Mach 3, Venus, and Guard relaunch), strong distribution expansion, and premiumisation.
The company is projected to deliver 8% revenue CAGR over FY25–27 with robust brand equity and rural demand revival.
Nirmal Bang values the stock at 52x FY27E EPS, maintaining a ‘BUY’ call.
💰 Nirmal Bang’s Diwali Portfolio Outlook
The brokerage’s Samvat 2082 portfolio focuses on:
- Defence & Auto: HAL, M&M, ASK Auto
- Banking & Financials: SBI, City Union Bank
- Consumption & FMCG: Gillette, United Breweries
- Tech & E-commerce: Swiggy
- Infrastructure & Real Estate: Chalet Hotels, Blue Star
The firm expects these diversified plays to deliver steady returns of 18–35% over the next year, supported by domestic demand recovery, strong balance sheets, and improving earnings visibility.
