M&M, Glenmark Pharma, Tata Power, Bajaj Finance shares among brokerage's top Diwali 2026 picks
M&M has the highest upside potential among the eight stocks, according to the domestic brokerage, which has maintained a 'BUY' rating on the stock with a target price of Rs 4,377 against its assessed market price of Rs 2,840, indicating an upside potential of 54.1 per cent.
- Nov 2, 2026,
- Updated Nov 2, 2026 4:48 PM IST
Religare Broking has identified eight stocks across sectors as its top picks for Diwali 2026, with Mahindra & Mahindra (M&M), Glenmark Pharmaceuticals, Tata Power, Bajaj Finance, Larsen & Toubro (L&T), Kotak Mahindra Bank, HCL Technologies and Indian Hotels Company (IHCL) featuring on its list.
M&M has the highest upside potential among the eight stocks, according to the domestic brokerage, which has maintained a 'BUY' rating on the stock with a target price of Rs 4,377 against its assessed market price of Rs 2,840, indicating an upside potential of 54.1 per cent.
Glenmark Pharmaceuticals is another key pick, with a target price of Rs 2,897 against its assessed market price of Rs 2,299, implying an upside potential of 26 per cent. Religare has initiated coverage on the stock with a 'BUY' rating, citing its specialty medicines portfolio, established respiratory franchise, international presence and innovation pipeline.
Tata Power is another stock on Religare's Diwali list. The brokerage has given a 'BUY' rating with a target price of Rs 421, indicating an upside potential of 22 per cent. It expects the company's profit after tax (PAT) to grow at a compound annual growth rate (CAGR) of 25 per cent over FY26-FY28E, supported by renewable capacity additions, a higher contribution from solar manufacturing and stable regulated earnings.
For Bajaj Finance, Religare has initiated coverage with a 'BUY' rating and a target price of Rs 1,096, suggesting an upside potential of 16.7 per cent. The brokerage estimates compound annual growth rates of 18.9 per cent in net interest income (NII), 19.3 per cent in pre-provision operating profit (PPoP) and 18.9 per cent in PAT over FY26-FY28E.
It attributed the expected growth to sustained assets under management (AUM) expansion, a diversified lending franchise and operating leverage. The brokerage also highlighted the company's customer base and cross-selling capabilities, while noting that disciplined underwriting would remain important in containing credit costs.
Religare has assigned a 'Buy' call on L&T with a target price of Rs 4,510, implying an upside potential of 16.5 per cent. The brokerage said the construction major's record order book provides revenue visibility and offers exposure to India's infrastructure capital expenditure cycle and rising global energy investments.
It expects execution-led growth, operating leverage and gradual margin improvement to drive an 18.4 per cent CAGR in owners' PAT over FY26-FY28E.
Kotak Mahindra Bank has a target price of Rs 518 against its assessed market price of Rs 462, indicating an upside potential of 12.2 per cent. Religare maintains an 'Accumulate' rating on the stock and estimates FY26-FY28E CAGRs of 23.8 per cent in NII, 19.7 per cent in PPoP and 22.4 per cent in PAT, supported by advances growth, a potential recovery in net interest margins (NIMs) and operating leverage.
For HCLTechnologies, the brokerage has initiated coverage with a 'BUY' rating and a target price of Rs 1,680, suggesting an upside potential of 17.6 per cent.
Religare cited the IT company's deal pipeline, growing artificial intelligence (AI) revenues, improving margins and diversified technology portfolio as factors supporting its medium-term growth prospects. However, it flagged moderate organic growth, cautious discretionary spending and potential AI-led pricing pressure as near-term challenges.
IHCL has a target price of Rs 990, indicating an upside potential of 22 per cent from Religare's assessed market price. The brokerage has initiated coverage with a 'BUY' rating, citing the company's brand portfolio, sustained hospitality demand, asset-light expansion and growing management fee income.
Religare also highlighted the upgraded FY27 revenue guidance and healthy operating performance. The proposed merger of Oriental Hotels, effective April 1, 2027, is expected to simplify the group structure and strengthen growth opportunities, according to the brokerage. However, rising operating costs, potential moderation in room rates, seasonality and delays in hotel openings remain key risks.
Religare Broking has identified eight stocks across sectors as its top picks for Diwali 2026, with Mahindra & Mahindra (M&M), Glenmark Pharmaceuticals, Tata Power, Bajaj Finance, Larsen & Toubro (L&T), Kotak Mahindra Bank, HCL Technologies and Indian Hotels Company (IHCL) featuring on its list.
M&M has the highest upside potential among the eight stocks, according to the domestic brokerage, which has maintained a 'BUY' rating on the stock with a target price of Rs 4,377 against its assessed market price of Rs 2,840, indicating an upside potential of 54.1 per cent.
Glenmark Pharmaceuticals is another key pick, with a target price of Rs 2,897 against its assessed market price of Rs 2,299, implying an upside potential of 26 per cent. Religare has initiated coverage on the stock with a 'BUY' rating, citing its specialty medicines portfolio, established respiratory franchise, international presence and innovation pipeline.
Tata Power is another stock on Religare's Diwali list. The brokerage has given a 'BUY' rating with a target price of Rs 421, indicating an upside potential of 22 per cent. It expects the company's profit after tax (PAT) to grow at a compound annual growth rate (CAGR) of 25 per cent over FY26-FY28E, supported by renewable capacity additions, a higher contribution from solar manufacturing and stable regulated earnings.
For Bajaj Finance, Religare has initiated coverage with a 'BUY' rating and a target price of Rs 1,096, suggesting an upside potential of 16.7 per cent. The brokerage estimates compound annual growth rates of 18.9 per cent in net interest income (NII), 19.3 per cent in pre-provision operating profit (PPoP) and 18.9 per cent in PAT over FY26-FY28E.
It attributed the expected growth to sustained assets under management (AUM) expansion, a diversified lending franchise and operating leverage. The brokerage also highlighted the company's customer base and cross-selling capabilities, while noting that disciplined underwriting would remain important in containing credit costs.
Religare has assigned a 'Buy' call on L&T with a target price of Rs 4,510, implying an upside potential of 16.5 per cent. The brokerage said the construction major's record order book provides revenue visibility and offers exposure to India's infrastructure capital expenditure cycle and rising global energy investments.
It expects execution-led growth, operating leverage and gradual margin improvement to drive an 18.4 per cent CAGR in owners' PAT over FY26-FY28E.
Kotak Mahindra Bank has a target price of Rs 518 against its assessed market price of Rs 462, indicating an upside potential of 12.2 per cent. Religare maintains an 'Accumulate' rating on the stock and estimates FY26-FY28E CAGRs of 23.8 per cent in NII, 19.7 per cent in PPoP and 22.4 per cent in PAT, supported by advances growth, a potential recovery in net interest margins (NIMs) and operating leverage.
For HCLTechnologies, the brokerage has initiated coverage with a 'BUY' rating and a target price of Rs 1,680, suggesting an upside potential of 17.6 per cent.
Religare cited the IT company's deal pipeline, growing artificial intelligence (AI) revenues, improving margins and diversified technology portfolio as factors supporting its medium-term growth prospects. However, it flagged moderate organic growth, cautious discretionary spending and potential AI-led pricing pressure as near-term challenges.
IHCL has a target price of Rs 990, indicating an upside potential of 22 per cent from Religare's assessed market price. The brokerage has initiated coverage with a 'BUY' rating, citing the company's brand portfolio, sustained hospitality demand, asset-light expansion and growing management fee income.
Religare also highlighted the upgraded FY27 revenue guidance and healthy operating performance. The proposed merger of Oriental Hotels, effective April 1, 2027, is expected to simplify the group structure and strengthen growth opportunities, according to the brokerage. However, rising operating costs, potential moderation in room rates, seasonality and delays in hotel openings remain key risks.