Every Diwali brings with it a sense of optimism and new beginnings — not just culturally, but also financially.
At AKNA Capital, we believe in using data, discipline, and evidence-based investing to identify stocks that can create long-term wealth.
This year’s Diwali Picks 2025 list has been curated by a SEBI-registered Research Analyst (Registration No. INH000023515) associated with AKNA Capital.
The firm itself is not SEBI-registered and the content below is purely for educational and informational purposes.
All selected companies come from the Nifty 500 universe, ensuring quality, liquidity, and corporate governance. Each stock has been chosen through a blend of quantitative screening and fundamental analysis.
1. AU Small Finance Bank – Entering the Next Phase of Growth
Current Price: ₹792.45
AU Small Finance Bank continues to demonstrate strong financial performance, with Q2 FY26 profit rising 31.8% year-on-year and a five-year profit CAGR of 25.6%. The RBI’s in-principle approval for its transition into a Universal Bank marks a potential inflection point for future growth.
The bank’s loan book has expanded 46% YoY, led by strong execution and robust governance under a largely independent board. The reappointment of the CEO until 2029 provides stability and strategic continuity.
Analyst View: AU SFB stands out as one of the most efficiently managed small finance banks in India, now stepping into a broader banking space.
2. Federal Bank – Quality at a Reasonable Price
Current Price: ₹212.38
Federal Bank reported record net interest income of ₹2,495 crore in Q2 FY26 and maintained strong asset quality with a gross NPA of 1.9%. The stock trades at a P/E of 13.2x, well below the sector average of 17.7x, reflecting valuation comfort.
The bank is expanding its retail and SME portfolio while maintaining high governance standards under a strong ESG framework.
Analyst View: Federal Bank offers a combination of consistent profitability, steady balance sheet growth, and attractive valuation — ideal for long-term investors seeking stability.
3. Kaynes Technology – Benefiting from India’s Manufacturing Push
Current Price: ₹7,019
Kaynes Technology has grown its profits at a rate exceeding 95% CAGR over the past five years, supported by demand from defense, EV, and IoT sectors. The company is riding on the structural growth in India’s electronics manufacturing (EMS) industry, which is expected to grow 26–30% annually to reach up to $348 billion by 2030.
With a promoter holding of 53.5% and zero share pledging, Kaynes reflects strong management confidence and operational excellence.
Analyst View: As India emerges as a global manufacturing hub, Kaynes remains a key player poised to benefit from the structural shift toward domestic production.
4. GMDC – A Steady PSU Turnaround
Current Price: ₹567
Gujarat Mineral Development Corporation (GMDC) reported FY25 revenue of ₹28.5 billion and profit of ₹6.86 billion. With 74% government ownership, the company enjoys policy support and access to exclusive mining rights for lignite and bauxite in Gujarat.
GMDC’s diversification into alumina, clinker, and renewable energy projects is set to drive the next phase of growth. The company remains debt-free and consistently rewards shareholders with dividends.
Analyst View: GMDC represents a rare blend of stability, value, and growth potential among India’s state-backed enterprises.
5. Lemon Tree Hotels – Capturing India’s Tourism Upswing
Current Price: ₹166.12
Lemon Tree Hotels is India’s largest mid-scale hotel chain, with over 10,700 rooms across 108 properties. Strong demand recovery and operating leverage helped it achieve ₹317 crore in revenue and ₹48 crore profit in Q1 FY26.
With the Indian hospitality market expected to reach $588 billion by 2034, Lemon Tree stands to benefit from the ongoing surge in domestic travel, business tourism, and international arrivals.
Analyst View: Backed by a strong brand and efficient management, Lemon Tree is well-positioned to ride India’s hospitality and tourism growth cycle.
6. Lupin – Returning to Consistent Growth
Current Price: ₹1,940
Lupin’s turnaround continues with FY25 EBITDA growth of 39.4% and profit before tax growth of 65.8%. Return metrics remain strong with ROCE at 21.3% and ROE at 20.6%.
The company’s strength lies in its expanding U.S. generics business, upcoming complex drug launches, and regulatory compliance at key plants.
Analyst View: Lupin is regaining its competitive edge in the pharmaceutical space and offers solid potential for long-term value creation.
AKNA Capital’s Portfolio Framework
All stocks in the Diwali 2025 list come from the Nifty 500 index, ensuring quality and liquidity.
Each stock carries equal allocation, which helps:
- Maintain diversification and reduce concentration risk
- Improve portfolio balance across sectors
- Achieve better risk-adjusted returns over time
Periodic rebalancing is recommended to keep allocations aligned as stock prices fluctuate.
Conclusion
India’s growth momentum remains strong, supported by healthy corporate earnings, consumption revival, and continued policy stability. As we enter a new market cycle, opportunities lie in companies with strong fundamentals and clear growth visibility.
At AKNA Capital, our focus remains on data-backed, evidence-based investing. These Diwali 2025 picks are not stock tips but educational insights into businesses that exhibit strong long-term potential.
For more detailed research reports and insights, visit www.aknacapital.com.
Disclaimer
This article has been authored by a SEBI-registered Research Analyst (Registration No. INH000023515) associated with AKNA Capital.
AKNA Capital itself is not a SEBI-registered entity, and the information shared here is for educational and informational purposes only. It should not be considered investment advice or a solicitation to buy or sell securities. Investors should conduct their own due diligence or consult a qualified financial advisor before making investment decisions.