..... . VALI disclosures . .....: 10/10/25, Diwali Stocks To Buy, Diwali Picks 2025: Leading brokerage firm Geojit Financial Services has recommended 12 stocks to buy this Diwali (Muhurat Diwali Stocks 2025).

Friday, October 10, 2025

10/10/25, Diwali Stocks To Buy, Diwali Picks 2025: Leading brokerage firm Geojit Financial Services has recommended 12 stocks to buy this Diwali (Muhurat Diwali Stocks 2025).

The brokerage has also shared the rationale behind its recommendations. The 12 stocks include Suzlon Energy, State Bank of India, Infosys, Hindustan Unilever, Maruti Suzuki, Axis Bank and more.

Let's take a look at list of all the 12 stocks along with the rationale:

State Bank of India (SBI)

Geojit said that SBI aims to enhance branch efficiency through initiatives such as 'Grahak Mitra' and increased automation. It also plans to boost profitability by leveraging all avenues to grow fee income, rationalizing operating expenses, and improving employee productivity.

It said that government's divestment programme, reduced bureaucracy and the introduction of professional management are positive signs for SBI. SBI remains well-positioned to sustain its growth momentum, supported by a comfortable LDR, which provides the leverage to accelerate credit growth.

Infosys

Geojit said that Infosys' order pipeline remains robust at USD 3.8 billion in Q1 FY2025, with 55 per cent comprising new new orders. The new orders are driving by strong AI agents across business operations and IT functions. It said that the IT company's investments in automation, productivity told and AI have improved delivery and client outcomes. It noted that Infosys has maintained its FY2026 margin outlook, backed by Project Maximus, cost cuts and disciplined spending.

At a 1 year forward P/E of ~22x, Infosys shares are trading below the long-term averages. The recent share buyback announcement by Infosys signals management confidence and adds to shareholder value.

Hindustan Unilever (HUL)

Geojit said that HUL's focus on premiumization and innovation is expected to drive performance in he coming quarters. The company's recent leadership transition presents a promising opportunity for sustainable value creation. HUL is well-positioned to capitalise on the improving macro environment, adding that the recent tax benefits, lower inflation, favourable monsoon, and the upcoming 8th Pay Commission add to the positive sentiment.

The brokerage said that it expects the revival in demand, especially from rural areas. The demand revival will aid healthy earnings growth over the next year. At a 1-year fwd. P/E of ~52x, HUL stock is trading below its long-term average and also its peers.

Maruti Suzuki

Geojit said that GST rationalization enhances affordability, while expected pickup in rural income, new launches and Maruti's vast distribution network support strong growth. Maruti offers one of the most comprehensive and diverse portfolios in the sub-1,200 cc segment, securing a dominant market share of the demand surge triggered by lower prices.

1 year fwd. P/E is ~29x (5yr avg is ~28x). The brokerage expects strong earnings growth of ~31% over FY25-27E and it justifies improvement in future valuation.

Axis Bank

Geojit said that Axis Bank is expanding footprint in India's thriving startup ecosystem, offering entrepreneurs seamless access to banking, advisory, and capital through our hub-and-spoke model. The bank's efforts include contributing to the evolving fund ecosystem in collaboration with VCs, incubators, and policy platforms to support early and growth-stage ventures.

Among the universal banks, Axis Bank is preferred due to its attractive valuation relative to peers, offering a favourable risk-reward setup, it said.

UltraTech Cement

As the largest cement player in India, UltraTech Cement's strategic investments in new capacities, cost optimization and commitment to green technologies are expected to drive growth. Additionally, the integration of acquired assets, including India Cements and Kesoram, is progressing well, which will add to earnings growth.

As a pan-India player, Ultratech is poised to benefit from the positive cement demand outlook given GOI's strong focus on housing & infra along with the recent improvement in realization and reduction in costs.

Ultratech is currently trading at 1yr fwd. EV/EBITDA of ~19x, above its long-term average of ~17x, factoring in strong earnings growth over FY25-27E.

Tata Consumer Products

Geojit said that Tata Consumer Products has expanded into high-growth, high-margin categories, including health and wellness, through acquisitions like Organic India and Capital Foods, which will support margin expansion. It said that Tata Consumer Products focus on innovation and expansion into new channels positions the company well for long-term growth.

At a 1year fwd. P/E of ~60x, Tata Consumer Products is trading moderately above its long-term average, factoring in strong earnings growth of ~27% CAGR over FY25-27E.

Hero MotoCorp

Geojit said that Hero Motocorp is set for a robust performance, driven by new products across segments, improving product mix, better cost management and increasing financing penetration. It expects volume growth to exceed the industry's growth next year.

With a strong market share in the entry-level segment and a valuation below industry peers, Geojit expect a re-rating in the stock going forward.

Suzlon Energy

Geoji said that Suzlon Energy had a robust Q1FY26 exit order book of 5.7 GW. The current execution pace provides clear revenue visibility for the next three years. It expects 42% CAGR growth in revenue over FY25-27E.

Suzlon Energy, it said, is positioned to realize volume-driven efficiencies. It expects 117bps margin expansion (FY25-27E).

At 29x, Suzlon Energy shares remain attractively priced, leaving significant upside potential.

Brigade Enterprises

Geojit said that Brigade Enterprises has a robust pipeline of ~12.3msf of launches for FY26 across key cities, which is expected to support a 15 per cent growth in pre-sales. The successful listing of Brigade Hotel Ventures Ltd (74.1% owned by Brigade Enterprises) reflects strategic diversification and enhances visibility, potentially unlocking value for shareholders.

Can Fin Homes

Geijit said that Canara Bank's strong parentage offers Can Fin Homes both a trusted brand identity and comprehensive support for funding. The key strategy involves expanding into semi-urban and developing cities to enhance access to affordable credit for underserved communities.

With rising disposable incomes supported by tax reductions and lower interest rates pushing housing demand, coupled with the stock's attractive valuation, Geojit believes that Can Fin Homes' future is bright.

HG Infra Engineering

Geojit said that HG Infra has a strong order book of Rs 14,656 crore in Q1FY26. The company is targeting an order inflow of Rs 11,000 crore in FY26 due to a solid tender pipeline from NHAI. HG Infra Engineering has signed a binding agreement to monetize 5 HAM projects which will strengthen its balance sheet and reinvest in high-return projects.

It expects HG Infra's revenue to grow at a CAGR of 15 per cent over FY25-FY27. Additionally, the company aims to diversify its order book targeting 30-40 per cent from non-road projects over the next two to three years-while maintaining a healthy margin profile to support sustained future growth.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)

www.etnownews.com

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Friday, October 10, 2025

10/10/25, Diwali Stocks To Buy, Diwali Picks 2025: Leading brokerage firm Geojit Financial Services has recommended 12 stocks to buy this Diwali (Muhurat Diwali Stocks 2025).

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