JM Financial's Diwali picks: Top 10 stocks to watch, with Gravita and BEL offering highest upside

JM Financial Services has picked 10 stocks across sectors for its Diwali 2026 portfolio, with Gravita India and Bharat Electronics leading the list with projected upside of 34% and 33%, respectively, from their October 28 closing prices. The brokerage has assigned Buy ratings to all 10 stocks, with price targets implying potential upside of 15-34% over a six-to-12-month timeframe. Its selections span banking, defence, power transmission, telecom equipment, recycling, pharmaceuticals, new-age businesses, telecom, capital goods and steel. Here are the brokerage's key investment arguments for each pick: Gravita India Target price: Rs 1,800 | Implied upside: 34%JM Financial's positive view on Gravita rests on the opportunity created by the formalisation of the recycling industry and the company's expansion across metals.

The brokerage sees its lead recycling business benefiting from a shift towards organised players, while its acquisition of Rashtriya Metal gives it an entry into copper recycling. The company's Vision 2030 plan targets a 20-25% compound annual growth rate in volumes and 30-35% growth in profitability, with a targeted return on invested capital of around 25%, according to the report. Bharat Electronics Target price: Rs 485 | Implied upside: 33%JM Financial's thesis on Bharat Electronics is anchored in its strong order visibility and the defence sector's expanding domestic procurement pipeline. The company had an order backlog of Rs 72,258 crore, equivalent to 2.6 times its FY26 revenue, while its FY27 order inflow target is above Rs 55,000 crore.