From Bharti Airtel to ICICI Bank: 10 cracker stocks for Samvat 2082

Brokerages expect modest market gains as earnings stay weak, but Diwali stock picks point to brighter prospects for select consumer, lending, and capital goods firms

Optimism is returning to Dalal Street after a muted performance by the Indian equity market over the past year. But forward earnings and price targets suggest caution rather than an expectation of a full-blown rally. 

Bloomberg consensus estimates indicate that the BSE Sensex could rise 10.8 per cent over the next 12 months, reaching 93,512 by the end of October next year. That would improve on the 6.3 per cent gain recorded since October last year, though it remains below the 24.3 per cent rise seen between October 2023 and October 2024. 

Brokerages’ measured optimism reflects persistent headwinds in corporate growth and earnings. Revenues have grown in single digits for two consecutive years, while earnings have remained in single digits for five quarters. 

Forward price estimates are broadly consistent with the Sensex’s historical trends. Over the past decade, the index has delivered double-digit annual returns in only four of the last 10 year-ending Octobers. In the remaining six years, returns barely outpaced inflation. Over the past 10 years, the Sensex has risen at a compound annual rate of 12.2 per cent, from 26,657 at the end of October 2015 to 84,426 as of October 21 this year. 

However, Diwali stock picks from brokerages suggest that select individual companies could outperform the broader market. Analysts are betting on a recovery in consumer demand, spurred by recent goods and services tax cuts, the Reserve Bank of India’s rate reduction, and income-tax relief in this year’s Union Budget. Potential trade agreements with the US and the European Union could also provide a lift. Consumer goods and services companies, retail lenders, and select capital goods makers are expected to benefit the most. 

Here are 10 stocks likely to shine over the next 12 months. 

Apollo Hospitals

 

Has an expansion plan of 4,472 beds across 12 locations at a cost of ~8,200 crore in the next four years which should drive next phase of growth

 

Apollo HealthCo’s cash losses have come down sharply driven by improved unit-level economics, renegotiation of vendor contracts, and better insurance monetisation

 

Listing of the HealthCo is expected to unlock value. The company is getting full ownership in HealthCo after IFC’s stake, which should result in greater flexibility with respect to capital allocation and better operational synergies 

 

Prabhudas Lilladher Research expects operating profit growth of 26 per cent annually over FY25-28E, led by clear visibility on hospital expansion, impending breakeven in Apollo 24×7, and healthy growth of over 25 per cent across standalone pharmacies and diagnostics businesses  

 

   

       

  Cummins India  The sharp rise in data centre capacities in India from 1.2 Gw (FY25) to 5 Gw (FY30) can structurally drive powergen sales 

Domestic demand is expected to remain healthy, driven by commercial realty, residential realty, infrastructure & manufacturing sectors 

Volumes are back to pre-buying levels (prior to the implementation of emission standards for diesel generators), and the pricing has broadly stabilized and no price action was taken in Q1FY26

 

Exports stay strong, particularly in data centers and the low-horse power segments across multiple regions. Europe, Africa, and the Middle East are witnessing steady demand 

It is well placed to sustain/grow its current 20 per cent plus margin profile. Kotak Research expects a 14-15 per cent annual growth in revenues, operating and net profit over FY26-28 

 

  Maruti Suzuki India

 

MSIL boasts of one of the most extensive and diverse portfolios in the 

sub-1,200 cc segment, capturing the lion’s share of the demand surge triggered by lower prices

 

Sports utility vehicles including electric vehicles would serve as the cornerstone of growth during the festival season and over the medium-term horizon, says Sharekhan Research 

 

To strengthen its product portfolio further, Maruti has launched Victoris, a mid-size SUV and E Vitara powered by an ICE engine/electric drivetrains, respectively

 

JM Financial Research expects an 8 per cent to 11 per cent Y-o-Y volume growth in FY26-FY27 as compared to 4.6  per cent Y-o-Y volume growth in FY25

 

Operating profit margin too is expected to rise by 110 basis points over FY25-27 while net profit is expected to grow by 23 per cent over the same period 

 

  Steel Authority of India

 

The public sector steel maker is expected to do well over the next one year on the back of a recovery in steel prices in recent months

 

Brokerages expect SAIL stock price to rise by nearly 21 per cent from current level, potentially making it one of the top mid-cap stocks

 

In comparison, SAIL stock price is up just 2.8 per cent in the last 12 months with most of the gains coming in the last three months

 

Analysts at Motilal Oswal expect the company's volume to grow at a CAGR of 6 per cent over FY26-27 period, lower than its domestic peers largely due to lack of capacity

 

The stock is trading at a trailing price-to-earning multiple of 17.6x and price to book ratio of 0.9. These ratios are less than half the corresponding valuation ratio of private sector peers such as Tata Steel and JSW Steel

 

Operating profit margin too is expected to rise by 110 basis points over FY25-27 while net profit is expected to grow by 23 per cent over the same period 

 

   

Bharti Airtel

 

Expectations of tariff hikes in H2FY26 could boost the Arpu and help generate a higher incremental operating profit margin and free cash flow to support future investments

 

Arpu growth is driven primarily by premiumisation, postpaid upgrades, international roaming penetration, and new value-add bundles. Bharti is looking to achieve its target Arpu of ~300 (~250 in Q1FY26) in the near to medium future

 

Ongoing investments in digital platforms, platform-based services, and pan-India fiber buildout to future-proof the network and tap large B2B opportunities, says Mirae Asset Sharekhan Research

 

Revenues are expected to grow annually at 15 per cent over FY25-FY27 on continued improvement in the Indian wireless market, rise in Arpu, and strong growth in the African markets, says HDFC Research 

 

 

ICICI Bank

 

India's second largest private sector lender is expected to be an out-performer over the next 12 months

 

Brokerages expect an acceleration in ICICI Bank earnings growth reversing the slowdown in previous few quarters

 

They also expect the bank to maintain its historically high return on assets at over 2 per cent and return on equity at over 17 per cent

 

Its gross interest income was up 7.4 per cent Y-o-Y while net profit was up 5.2 per cent Y-o-Y 

in Q2FY26

 

It is currently trading at a trailing P/E of 18.9 times and price to book value of 3.8, amongst the highest in its peer group  

 

 

 

Reliance Industries

 

Brokerages expect a good show over the next 12 months on back of an improved performance 

 

Analysts at Motilal Oswal expect its telecom arm to be the biggest earnings driver with 19 per cent compounded annual growth in operating profit over FY25-28 period 

 

Brokerages expect earnings recovery in O2C division after a poor show in FY25. They also expect a sharp recovery in Reliance Retail Venture earnings and build in 14-15 per cent annual growth in revenue and operating profit over FY25-28

 

Overall, RIL’s consolidated operating and net profit is expected to grow at an annual growth of 11 per cent over FY25-28 period

 

The stock is currently trading a trailing P/E of 26.2 times and price to book value of 2.3 times 

 

 

ITC

 

Expects growth momentum to strengthen, supported by moderating inflation, potential rate cuts, sustained RBI liquidity support, and fiscal thrust through tax relief and front-loaded government spending

 

Cigarette volumes continue to register growth, aided by innovations and ongoing premiumisation 

 

The agri business remains resilient, underpinned by robust customer relationships and agile execution across leaf tobacco, coffee, and spices 

 

The fast moving consumer goods segment segment has witnessed a pickup in demand momentum

 ITC has ~28,000 crore plus of cash and cash equivalent to support its strategic investment plans. It plans to invest ~20,000 crore over the next five years to improve growth prospects of each business 

 

Operating profit margin too is expected to rise by 110 basis points over FY25-27 while net profit is expected to grow by 23 per cent over the same period   

 

Larsen & Toubro

 

The stock is expected to deliver 9.2 per cent upside from the current level on the back of a continued traction in its revenue and earnings growth

 

Brokerages expect the company to continue to grow its order book in double digits and expect a similar growth in order execution and revenue growth

 

Its total order book at the end of Q1FY26 stood at ~6.1 trillion, up 25 per cent Y-o-Y. Nearly 46 per cent of L&T total order book is from overseas clients

 

The Street also expects faster earnings growth at three of its listed subsidiaries - LTIMindtree, L&T Technology Services and L&T Finance over the next one year

 

The stock is currently trading at a trailing P/E multiple of 34.5 times and price to book value of 5.5 times, nearly 50 per cent higher than current Sensex valuation 

State Bank of India

 

Brokerages expect the stock to rise 10.7 per cent over the next 12 months. It has delivered 11.5 per cent returns in the last 12 months, more than double the returns delivered by the benchmark BSE Sensex in the period

 

Brokerages expect SBI to gain as the recent cut in GST rates and monetary easing by RBI will lead to faster credit growth

 

Its bottom line is also expected to get a boost from treasury gains as interest rates decline and there is a rationalisation in operating expenses

 

SBI’s consolidated net profit was up 9.7 per cent Y-o-Y in Q1FY26 while its gross interest income was up 6.3 per cent Y-o-Y in the quarter

 

 The stock is currently trading at 11.5x times its trailing earnings and 1.8x its book value