Motilal Oswal picks 10 stocks as Diwali recommendations, projecting up to 38% upside

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Motilal Oswal Investment Management has picked 10 stocks as its Diwali picks for Samvat 2082. The 10 names include State Bank of India, Mahindra & Mahindra, Bharat Electronics, Swiggy, Indian Hotels, Max Financial Services, Radico Khaitan, Delhivery, LT Foods and VIP Industries. It expects the second half of FY26 to mark the crossing-over from a subdued low-single-digit earnings growth to a more sustainable double-digit earnings growth. Here's a look at its 10 stock picks:

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SBI | Motilal Oswal has set a price target of ₹1,000 apiece for SBI, projecting a potential upside of 14%. The brokerage said structural tailwinds from the Centre's reforms such as GST 2.0, income tax reforms and RBI's liquidity infusion, will lead to robust credit growth and will support profitability in the banking, financial services and insurance sector. It said SBI stands out for its diversified growth momentum across retail, SME, and corporate segments, supported by a robust credit pipeline and digital transformation.

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M&M | The brokerage sees a 21% upside on the stock with a price target of ₹4,091 apiece. The company is planning to launch seven internal combustion engine (ICE) SUVs, five battery electric vehicles (BEVs) and five light commercial vehicles by 2030, starting from the ongoing financial year. This positions the carmarker strongly across both, ICE and EV segments, Motilal Oswal said. M&M is poised to deliver strong earnings growth, driven by rural recovery and robust launches, further reinforced by improving tractor margins and immediate GST rate pass-through to consumers, it added.

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BEL | Motilal Oswal has set a price target of ₹490 apiece for this defence PSU, projecting a 22% upside on the stock. The brokerage said the Indian Army's ₹30,000 crore tender for 'Anant Shastra' project, with BEL as the lead integrator, boosts its order book beyond ₹1 lakh crore and underscores its leadership in strategic defense programmes. It is positioned strongly under the Technology Perspective and Capability Roadmap (TPCR 2025) roadmap, and is set to benefit from sustained opportunities across the Army, Navy and the Air Force, Motilal Oswal said. BEL offers robust long-term growth visibility, making it a compelling investment in India’s defense modernization journey, it added.

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Swiggy | Motilal Oswal has set a price target of ₹550 per share for Swiggy, a potential upside of 25% from its previous close. The brokerage said Swiggy expects its quick commerce arm to achieve profitability sooner, aided by easing competition, moderated dark store expansion and lower acquisition costs. Motilal Oswal has raised its food delivery outlook, with growth estimates raised to 23% for FY26-27 from the previous 20%, driven by GST-led boost to disposable income and rising discretionary spending, it added.

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Indian Hotels | The stock can rise another 21% from current levels as per Motilal Oswal, which has set its price target at ₹880 apiece. The brokerage is of the view that the Indian hospitality industry is set for robust growth in FY26. For Indian Hotels, it expects strong momentum to continue, led by strong room addition pipeline in owned / managed hotels and continued favourable demand-supply dynamics.

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Max Financial | The brokerage has set a price target of ₹2,000 apiece for Max Financial, projecting a 24% upside on the stock. Max Financial is poised for above-industry growth, supported by strong bancassurance traction, a resilient agency channel, and a favorable product mix, Motilal Oswal said. The GST waiver is set to further boost affordability and insurance penetration, it added. The brokerage said Max Financial will maintain its premium valuations, driven by new product launches, robust growth trend and improving margin profile.

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Radico Khaitan | The stock can rise another 16% from current levels to ₹3,375 apiece, as per Motilal Oswal. Radico Khaitan is well positioned for long-term growth through aggressive expansion in the premium and luxury spirits segment, leveraging strong brand equity with leading products such as 8PM, Magic Moments, and Rampur Single Malt, the brokerage said. It commands an 8% market share in the Prestige & Above (P&A) segment, with rising consumer premiumisation, it added. The company recently also acquired 47.5% stake in D’YAVOL Spirits, aiming to take India to the world by building bottled-in-origin luxury brands, targeting Tequila and other niche categories, the brokerage said.

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Delhivery | Motilal Oswal has set a price target of ₹540 on the stock, projecting an upside of 15% on the stock. The brokerage said Delhivery has a market share of over 20% in the express logistics space. Its recent ₹1,400 crore Ecom Express acquisition enhances the company's rural coverage, strengthens network density and drives cost synergies, it said. Delhivery is poised for sustained growth, supported by a rising user base, new category launches, and expanding e-commerce, Motilal Oswal said.

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LT Foods | The stock can rise 35% from current levels to ₹560 apiece, as per Motilal Oswal.  The company is well-positioned for long-term growth, leveraging its strong brand equity with Daawat and Royal, exporting to over 80 countries and commanding 30% and 50% share in the India and US Basmati markets, respectively, the brokerage said. It added that the business is structurally export-led. The recent acquisition of 100% stake in Hungary-based Global Green Europe Kft for €25 million will strengthen its reach to heat and ready-to-eat segments.

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VIP Industries | Motilal Oswal sees a 26% upside on the stock with a price target of ₹530 per share. The brokerage said VIP Industries has outpaced industry growth, delivering a revenue CAGR of 19% over FY22-25. With a scalable, profitable digital engine complementing its offline leadership, the company is well-placed to capture long-term market share gains, it said. Motilal Oswal expects VIP Industries to deliver industry beating growth, by leveraging the integrated strategy of premiumisation, digital scale and margin accretive supply chain.