Diwali 2025: Kotak Securities names Adani Ports, RIL, ICICI Bank among top 7 stock picks

Ahead of Diwali 2025, Kotak Securities has unveiled its list of seven preferred stocks across key sectors, highlighting opportunities in infrastructure, banking, manufacturing and consumer technology. The domestic brokerage expects robust earnings growth and margin improvement across its selected counters, with five stocks rated 'BUY' and two rated 'ADD'.

Adani Ports and Special Economic Zone Ltd (TP – Rs 1,900, BUY)

Kotak Securities noted a strong pace of value addition at Adani Ports, driven by volume growth across two-thirds of its port portfolio. The brokerage expects significant expansion in East Coast operations and continued dominance in container volumes. It projects revenue of Rs 11,400 crore and EBITDA of Rs 2,800 crore by FY29, valuing the company on a DCF and SoTP basis.

Acutaas Chemical (TP – Rs 1,780, BUY)

A fast-growing player in pharma intermediates and specialty chemicals, Acutaas Chemical is set to deliver over 25 per cent revenue growth with expanding margins. The firm highlighted three CDMO projects likely to start contributing from Q4 FY26, alongside margin gains from process improvements and favorable product mix.

Cummins India (TP – Rs 4,400, ADD)

Kotak Securities cited Cummins India's deeper market penetration and expansion in power generation-related businesses. The company is expected to sustain margins above 20 per cent and deliver 14–15 per cent CAGR in revenue, EBITDA and PAT between FY26–28. Valuation is based on 40x Sept'26E EPS, with an additional multiple for the BESS business.

Eternal (TP – Rs 375, BUY)

Eternal leads the food delivery space with a 57 per cent GMV share versus Swiggy's 43 per cent in FY25 and wider reach across 750 cities. Blinkit's take rate expansion and operating leverage from mature stores are expected to drive profitability, with EBITDA breakeven anticipated in H2 FY26. The brokerage forecasts a consolidated revenue CAGR of 83 per cent over FY25–28E.

ICICI Bank (TP – Rs 1,700, BUY)

The bank's 18 per cent RoE and solid PBT growth across segments underpin Kotak's bullish stance. Asset quality remains strong with no stress visible in the unsecured portfolio, while loan growth continues to be broad-based and supported by healthy subsidiary performance.

Mahindra & Mahindra (TP – Rs 4,000, BUY)

M&M retains leadership across SUV, LCV and tractor segments. The brokerage expects SUV volumes to rise by mid-to-high teens in FY26, supported by improving profitability in tractors and LCVs.

Reliance Industries (TP – Rs 1,555, ADD)

Kotak highlighted RIL's telecom IPO by H1 CY26, with a target to double EBITDA between FY22–27. Retail revenue is expected to grow 20 per cent-plus annually, while FMCG ambitions remain significant with a Rs 1 lakh crore target. Partnerships with Meta and Google Cloud reinforce its deep-tech transformation plans.