Stocks to buy: Adani Power, Bajaj Finance, Coforge among Globe Capital's top Diwali picks

Globe Capital Markets has suggested six stocks, namely Bajaj Finance Ltd, Adani Power Ltd, Coforge Ltd, Siemens Energy India Ltd, Hindalco Industries Ltd and Polycab India Ltd, which it expects to deliver strong upside going ahead. The brokerage sees 22-34 per cent potential upside across the six stocks, with Bajaj Finance and Siemens Energy India expected to offer the highest returns.

Bajaj Finance

Globe Capital Markets expects Bajaj Finance's AUM to grow over 22 per cent year-on-year (YoY) by September 2027. On that basis, it estimates quarterly interest income of Rs 22,328 crore, NII of Rs 14,469 crore and PAT of Rs 6,386 crore for the September 2027 quarter.

It has assigned a target price of Rs 1,255 per share, applying a P/BV multiple of 4.5 times to the combined estimated September 2027 book value of Rs 279 per share (Rs 28 for BHFL, Rs 20 for BFSL and Rs 231 for Bajaj Finance).

At 4.6 times its September 2026 book value, the stock trades near its five-year low and below its long-term median of 7.8 times, following a nearly 22 per cent correction from its 52-week high of Rs 1,176. NIM compression, equity dilution and regulatory risks to fee income remain key concerns; however, these are viewed as manageable over the medium term. The proposed capital raise and lower leverage target should further strengthen the balance sheet ahead of FY28.

Coforge

Globe Capital Markets expects Coforge to sustain its growth momentum, supported by a strong order book, large deal wins and opportunities across BFSI, manufacturing, AI and cloud services. Management's focus on AI-led productivity, operating leverage and Encora integration is expected to support further margin expansion.

It estimates trailing 21-month (TTM) revenue to increase from Rs 20,337 crore in September 2026 to Rs 29,946 crore by September 2027, while TTM profit is projected to rise from Rs 1,969 crore to Rs 3,114 crore over the same period. TTM EPS is also expected to increase from Rs 51 in September 2026 to Rs 70 by September 2027. It has therefore maintained a target price of Rs 2,450 per share, based on a conservative valuation multiple of 35 times P/E.

Siemens Energy India

Globe Capital Markets said Siemens Energy India has corrected approximately 31 per cent from its 52-week high, with its trailing P/E declining from over 90 times to 67 times despite trailing EPS growth of 35 per cent between FY25 and Q3 FY26. At approximately 42 times FY28E EPS, the valuation offers a potentially attractive entry point for a debt-free business benefiting from structural power infrastructure investments and strong earnings growth, although execution and valuation risks remain.

Going forward, the brokerage expects the company to sustain its earnings momentum, supported by strong order visibility, capacity expansion and rising demand for power transmission and generation infrastructure. TTM revenue is projected to increase 20 per cent YoY from Rs 9,436 crore in June 2026 to Rs 11,303 crore in June 2027. TTM adjusted PAT is expected to rise from Rs 1,488 crore to Rs 1,864 crore, translating into EPS growth from Rs 42 to Rs 53 during the same period. Accordingly, it has maintained its target price of Rs 3,484 per share, based on a valuation multiple of 67 times estimated June 2027 TTM EPS.

Hindalco Industries

The Hindalco stock is approximately 25 per cent below its May 2026 high and trades at around 8.5 times adjusted TTM earnings and 5.5 times estimated September 2028 Ebitda. Low global aluminium inventories and the gradual restart of Gulf capacity could support prices, although commodity price volatility and execution risks remain key monitorables, Globe Capital Markets said.

Going forward, TTM revenue is projected to increase from Rs 2,95,537 crore to Rs 3,36,095 crore by June 2027. TTM Ebitda is expected to rise from Rs 40,910 crore to Rs 44,889 crore, while TTM PAT is projected to increase from Rs 16,400 crore to Rs 20,211 crore, taking TTM EPS from Rs 74 to Rs 91 by June 2027. The brokerage has maintained its target price of Rs 1,092 per share, based on a valuation multiple of 12 times estimated June 2027 TTM EPS.

Polycab India

Globe Capital Markets said Polycab India's net cash of Rs 4,520 crore provides financial flexibility to fund capacity expansion and growth initiatives. Cost-plus pricing, disciplined capex and medium-term W&C EBITDA margin guidance of 11-13 per cent support earnings resilience through commodity price cycles.

Going forward, TTM revenue is projected to increase from Rs 34,609 crore in September 2026 to Rs 41,906 crore by September 2027. Ebitda is expected to rise from Rs 4,686 crore to Rs 6,259 crore, while PAT is projected to increase from Rs 3,202 crore to Rs 4,362 crore during the same period. Accordingly, TTM EPS is expected to improve from Rs 210 to Rs 286. The brokerage has maintained its target price of Rs 10,010 per share, based on a valuation multiple of 35 times estimated September 2027 TTM EPS.

Adani Power

Adani Power's net debt of approximately Rs 45,800 crore against annualised continuing Ebitda of around Rs 23,500 crore implies net debt/Ebitda of approximately 2 times. The AA+ credit rating upgrade should support borrowing costs, while the Rs 15,000 crore QIP approved in July 2026 provides additional funding for the capex cycle, although it entails potential equity dilution of approximately 4 per cent, Globe Capital Markets said.

The brokerage expects Adani Power to outperform the industry, supported by capacity additions, long-term PPAs and sustained electricity demand. TTM revenue is projected to increase from Rs 65,015 crore in September 2026 to Rs 83,144 crore by September 2027, while TTM PAT is expected to rise from Rs 18,645 crore to Rs 21,582 crore over the same period. Consequently, TTM EPS is projected to reach Rs 11 by September 2027. Accordingly, it has assigned a target price of Rs 231 per share, based on a P/E valuation multiple of 21 times estimated September 2027 TTM EPS.