As the festive season of Diwali approaches, investors are keenly looking for opportunities, and Arihant Capital Markets has unveiled its top stock recommendations. The brokerage firm has highlighted a select group of companies, including HFCL Ltd, Sammaan Capital Ltd, Sheela Foam Ltd, Texmaco Rail & Engineering Ltd, and Inox Wind Ltd, anticipating significant returns of up to 200%.
Arihant Capital's High-Potential Diwali Picks
These companies are part of Arihant's strategic investment ideas for the upcoming period, with detailed analysis underpinning their bullish outlook. The projections are based on factors ranging from operational turnarounds to synergy realizations and strong growth forecasts.
Sammaan Capital Ltd: Poised for 192% Growth
Arihant Capital notes that Sammaan Capital has addressed past challenges by reclassifying or selling non-core exposures worth Rs 14,950 crore in FY26, effectively resetting non-performing assets to zero. The firm maintains an Rs 1,850 crore management overlay as a buffer. Arihant expects pre-provision operating profit to surge to Rs 2,850 crore by FY29 from an estimated Rs 860 crore in FY27. With a target price of Rs 330, the brokerage recommends a 'Buy (High Risk)' rating, indicating a 192% upside from the current market price of Rs 113.
Sheela Foam Ltd: Kurlon Acquisition Driving 170% Upside
The acquisition of Kurlon, which initially impacted earnings, is now seen as a key growth driver for Sheela Foam. Operational integration is nearly complete at 96-97%, having already realized Rs 200 crore in synergies by Q4FY26, with an additional Rs 40 crore expected. Arihant forecasts robust revenue, EBITDA, and PAT CAGRs of 15%, 29%, and 64% respectively over FY26-28E. A 'Buy' recommendation with a target price of Rs 1,527 suggests a 170% upside from the current Rs 565.
Inox Wind Ltd: Turnaround Complete, 160% Upside Projected
Arihant Capital believes Inox Wind has completed its turnaround, leading to improved earnings quality. The brokerage projects revenue to more than double from Rs 4,397 crore in FY26 to Rs 9,500 crore by FY29E. EBITDA is expected to reach Rs 2,244 crore, with margins expanding to 23.6%, boosting PAT to Rs 1,173 crore. Arihant recommends a 'Buy' rating with a target price of Rs 152, implying a 160.30% upside from its current market price of Rs 58.40.
Texmaco Rail & Engineering Ltd: Steady Growth, 144% Potential
Texmaco Rail's revenue is expected to see a sharp recovery in FY28, projected to rise 60.6% to Rs 5,790 crore as export and private-sector orders are executed, following a subdued FY27. Arihant estimates a 20% revenue CAGR over FY26-29E, with EBITDA margins improving to 11.3%. The brokerage maintains a 'Buy' rating with a sum-of-the-parts (SOTP)-based target price of Rs 242, indicating a 144.8% upside from the current market price of Rs 98.85.
HFCL Ltd: Nearing Double with 99% Upside
Arihant anticipates HFCL shares could nearly double, projecting a 99% upside. The management has upgraded its FY27 guidance, expecting at least 80% year-on-year growth, with a Rs 10,000 crore revenue aspiration now expected well before FY29. The brokerage estimates revenue, EBITDA, and PAT CAGRs of 51.2%, 82.3%, and 113% respectively over FY26-29E. Arihant maintains a 'Buy' rating with a target price of Rs 495 against the current market price of Rs 249.
Disclaimer: This article provides information for educational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.