As we approach Diwali, domestic brokerage firm Nirmal Bang Institutional Equities picked 10 stocks for the Samvat 2082. Its stock picks are spread across major consumption led sectors like e-commerce, electronics, FMCG, defence, banking and automobile including others.
Its top picks have names like State Bank of India, Mahindra & Mahindra, Swiggy, HAL and others.
State Bank of India
With a total balance sheet/loan book size of R s66.8 trillion/Rs 41.6 trillion as of FY25, SBI is the biggest bank in India. The bank’s loan book has increased at a CAGR of 12.3% for FY15-FY25; from FY25-FY27E, we anticipate the loan book CAGR to be 11.8%. We estimate FY27E ROE at 15%, supported by 11.8%/9.7% loan/earnings CAGR. We maintain ‘BUY’ on SBI with a target price of Rs 1,040 based on 1.3x Sep 2027E ABV plus Rs 226.5 per share from subsidiaries.
Mahindra & Mahindra
We are positive on M&M with ‘BUY’ rating and SOTP based target price of Rs 4,042 valuing core business at 23x Sept’27 EPS factoring in the superior growth prospects in the core segment and improved capital allocation strategy. We are building in 12% volume CAGR for the core Auto business and 10% volume CAGR for the Tractor business over FY 25-27, with ASP growth in both segments, resulting in 18% consolidated revenue CAGR over the same period. MM is the best pick in terms of growth visibility as SUV- fication continues and it continues to gain market share from incumbents like Hyundai with new and feature rich premium SUVs.
Hindustan Aeronautics
Robust order book of Rs2.5 trillion provides strong multi-year revenue visibility, supported by a solid pipeline across fighters (LCA Mk1A, Su-30MKI), helicopters (LCH Prachand), and engines (AL-31FP, RD-33). Revenue, EBITDA, and PAT are projected to clock a CAGR of 15%, 15%, and 19%, respectively, over FY25-FY27E, outpacing the management guidance. The stock is trading at a 1-year forward P/E of 26.6x, above its 5-year average of 17x. We maintain our BUY rating at a target price of Rs 6,142, valuing the stock at 35x Jun-27E EPS (+2 SD above the long-term average).
Swiggy
Swiggy’s food delivery business saw strong margin expansion in FY25, supported by higher AOV, disciplined discounting, and improved delivery efficiency. The margin gap with competitors narrowed meaningfully, aided by better variable cost control and rising advertisement-led revenue, with adjusted EBITDA margin expected to reach ~4% of GOV by FY27E. Instamart, despite trailing Blinkit, is shifting from aggressive expansion to network densification ,efficiency, and early signs of monetization through higher take rates and ad revenues. Cohort behavior also improved, with faster payback periods and stronger engagement, supported by curated formats like megapods and Maxxsaver, enhancing monetization visibility. Additionally, Swiggy’s Out-of-Home segment turned profitable in Q4FY25, benefiting from strong GOV growth, dine-out integration, and ad monetization, targeting 4-5% EBITDA margin going forward. We continue to believe that the food delivery business is likely to deliver 18%/30%/67% CAGR in GOV, contribution profit, and adjusted EBITDA, respectively, during FY25- FY27E. This will be driven by higher order volumes, improved delivery cost optimization, and the benefits of operating leverage. For the quick commerce business, we remain optimistic that it will turn contribution profit positive by Q1FY27, supported by higher GOV, rising AOV, and an improving assortment mix. We project GOV and gross revenue to clock a CAGR of 72% and 80%, respectively, during FY25-FY27E with contribution profit turning positive in FY27. We are rolling forward our valuation to Jun-27E using the SOTP method and maintain our target price of Rs 544.
United Breweries
Over the last two years, and especially under the tenure of CEO Mr. Vivek Gupta, UBBL has embarked on an investment phase for long-term growth, which includes (a) significantly higher marketing spends and new launches (especially in the premium segment) compared to the past, (b) significant investment in brewing capacity compared to the past, (c) embarking on ambitious visi-cooler expansion plans to improve the quality of product for end consumers. While these investments will impact margins in the near term, we believe the company will reap the gains of these investments from a medium-to-longer term perspective, especially on the back of under investment by the company on these initiatives in the past. The stock is currently trading at ~54x/~34x FY26E/FY27E EV/EBITDA. We recently upgraded our rating to ‘Buy’ on the stock with a target price of Rs 2,250 valuing the stock at 40x on Sep’27 EV/EBITDA (~28%/18% discount to the 3/5-year average one-year forward multiples).
Blue Star
We have strong confidence in Blue Star’s business model, especially its disciplined focus on profitability and free cash flow generation. We upgraded the stock after its Q4FY25 results (note) as we believed the weak summer season was already priced in. Since then, the stock has rallied ~20%. We continue to believe Blue Star is well placed to ride the RAC industry tailwinds with its B2B businesses also showing strong growth momentum. Backed by strong fundamentals and long-term growth drivers, we maintain our BUY rating with an SOTP-based TP of Rs 2,165. This implies a blended P/E of 48x on FY27E earnings, in line with its 3Y average and at a ~5% premium to its 5Y average. We believe this valuation fairly reflects key strengths: (1) ~21% EPS CAGR over FY25-27E, and (2) ~18% post-tax RoCE by FY27E. In our view, Blue Star remains a solid long-term compounding story.
City Union Bank
CUBK reported double digit advances growth of 16.1% YoY (up 1.8% QoQ) for 1QFY26; supported by (a) retail advances growth particularly in LAP, HL, affordable housing and micro-LAP segments while gold/Agri loan remained largely flat on a sequential basis due to seasonality. (b) improved efficiency in credit sourcing (80% in house, rest DSA), (c) some benefits from digital transformation. The bank expects the new retail product segment to start contributing significantly from FY26 onwards. While the bank remains confident of the traditional product segments helping it to achieve system level growth, it believes the addition of new retail product segments would help it further scale loan growth beyond industry growth rate. The bank expects retail loan product segment to contribute around 10% of overall loan book over next 3 years. We have estimated loan / earnings to grow at a CAGR of 14.1% / 13.3% over FY25-FY27E, which will lead to RoA / RoE of 1.5% / 12.9 in FY27E. We have a ‘BUY’ rating on CUB with a target price of Rs 260 (valued at 1.6x Sept 2027E ABV).
ASK Automotive
We remain bullish on ASK Automotive with a ‘BUY’ rating and valuing company at target multiple of 27x on Sept27E EPS to arrive at a target price of Rs 632. ASK Automotive is the market leader in advanced braking systems for 2Ws and also supplies drivetrain-agnostic, safety-critical engineering solutions across automotive and non-auto segments. Between FY25 and FY27E, ASK Auto is expected to deliver a revenue & EBITDA CAGR of ~16% and ~28% respectively, driving EBITDA margin expansion of 270bps. This sharp margin uplift is anchored by three levers: (1) a rising share of the higher-margin ALPS segment, which is scaling rapidly and structurally enjoys 200- 300bps higher EBITDAM than the consolidated business, (2) the strategic phase-out of the low-margin wheel assembly vertical that historically diluted profitability, and (3) incremental content gains and wallet share from diversification into new products such as sunroof cables in the Indian passenger vehicle market.
Chalet Hotels
Chalet, the hospitality arm of K Raheja Group is an owner, developer, asset manager and operator of hotels and resorts (3,351 operational keys across 11 hotels) under leading global brands (Marriott and Accor Group) in MMR, NCR, Hyderabad, Bangalore and Pune in the premium segment. CHALET’s strategy of growth is via the ownership route this strategy augurs well in an industry upcycle like the current one as one can reap the benefits of operating leverage. Commercial Real Estate (CRE) leasing and residential projects offer diversification to the base business. We are positive on Chalet with a ‘BUY’ and target price of Rs1,198 based on Hospitality business EV/EBITDA of 23x on June FY27E.
Gillette India
We are currently building in 8% revenue CAGR over FY25-FY27E led by: a) Continued healthy growth in Female Grooming products. b) Pick up in the Electric Shaving products/trimmers/epilators c) Increased distribution (added 1mn stores in last 3 years) and d) Efforts to target influencers. FY25 (nine-month period as the company has moved from June year-end to March year-end) was an extremely strong year for Gillette India on all fronts. Its rapidly expanding distribution (1mn outlets added in the last 3 years as highlighted in the recent analyst meet), innovation (Gillette Guard relaunch, Mach 3, and Gillette Venus improved in FY25 following on a significant set of innovations in earlier years), rural demand revival, and continued healthy adspends (highest ad spend to sales proportion since FY14 in FY25) have collectively underpinned double-digit growth in FY25, strengthening both market leadership and brand equity. Grooming segment market share was at its highest ever as a result. The stock is currently trading at ~49x/~42x FY26E/FY27E EPS. We have a ‘Buy’ rating on the stock with a target price of Rs 12,615 valuing the stock at 52x on FY27E EPS.