Top 10 Most Recommended Diwali Stock Picks for 2020-2021

Top 10 Most Recommended Diwali Stock Picks for 2020-2021

Top 10 Most Recommended Diwali Stock Picks for 2020-2021

Leading stock brokerages are recommended Diwali stock picks for 2020-2021. There are hundreds of stocks that are being recommended by them every year. However, there is no guarantee that all such stocks would deliver good returns. One thing investors can do is to check what is common between these recommendations and whether it makes sense to invest in such stocks. Which are the Top 10 Most Recommended Diwali Stock Picks for 2020-2021 by leading stock brokers? What is their target price being recommended now? How these top 10 most recommended stocks have performed in the last 5 years?

Diwali Stock Picks for 2020-2021

There are several Diwali stock pick recommendations for 2020-2021 by leading stock market experts. These stock recommendations are part of banking, pharma, consumer etc., What if we can check what is common and analyze them further? Let’s get into these details now.

Top 10 Most Recommended Diwali Stock Picks for 2020-2021

Here is the list of Diwali stock picks for 2020-21 recommended by stock brokerage firms.

1) Bharti Airtel

2) ICICI Bank

3) Infosys

4) SBI Life Insurance

5) L&T

6) KPR Mills

7) APL Apollo Tubes

8) Radico Khaithan

9) Axis Bank

10) Kotak Mahindra Bank

Top 10 Most Recommended Diwali Stock Picks for 2020-2021

Lets deep dive about how these stocks performed in the last 5 years and pre and post covid levels.

Top#1 – Bharti Airtel – Potential upside of 56% from CMP

This telecom stock is one of the most recommended Diwali stock picks from Motilal Oswal Securities, HDFC Securities, Kotak Securities, IDBI Capital and Sharekhan with highest potential upside of 56% from current market prices. Here is how the stock price has moved in the last 5 years. While the stock price has appreciated by 50% in the last 5 years, this stock has declined by more than 20% in the last 5 months. The Airtel shares price crashed in Aug-2020 when Supreme Court indicated to pay bankrupt Videocon AGR dues where it had purchased spectrum 4 years back. We believe worst is over and share prices are expected to move upwards in the coming months.

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10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of Bharti Airtel

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Top#2 – ICICI Bank – Potential upside of 20% from CMP

This bank stock is one of the top recommended Diwali stock picks from Motilal Oswal Securities, HDFC Securities, ICICIdirect and Yes securities with highest potential upside of 20% from current market prices. Here is how the stock price has moved in the last 5 years. While the stock price has appreciated by 87% in the last 5 years, this stock is still 20% down from pre-covid level. This is due to the fear of an increase in NPAs due to covid-19. Q3 and Q4 are crucial for banks where we can see real NPAs coming up as moratorium period is over by Q2. While the stock might go up in the short term of less than 2 months, we can see real picture only after Q3 results which would be around mid of Jan, 2021.

10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of ICICI Bank

Top#3 – Infosys – Potential upside of 27% from CMP

This IT stock is one of the best recommended Diwali stock picks from Motilal Oswal Securities, HDFC Securities and Kotak Securities with highest potential upside of 27% of current market price. Here is how the stock price has moved in the last 5 years. The stock price has appreciated by 105% in the last 5 years and appreciated by 42% now compared to pre-covid level. We believe that Digital / IT would play a key role during covid-19 and Infosys kind of stocks would continue to outperform in future.

10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of Infosys

Top#4 – SBI Life Insurance – Potential upside of 37% from CMP

This life insurance stock is one of the recommended Diwali stock picks from Kotak Securities and ICICIDirect with highest potential upside of 37% of current market price. Here is how the stock price has moved in the last 3 years. The stock price has appreciated by 15% in the last 3 years and is still down by 20% down from pre-covid level.

10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of SBI Life

Top#5 – L&T – Potential upside of 36% from CMP

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This stock is one of the recommended Diwali stock picks from Kotak Securities and Sharekhan with highest potential upside of 31% of current market price. Here is how the stock price has moved in the last 5 years. The stock price has appreciated by just 8% in the last 5 years and is still down by 26% down from pre-covid level. As per our view, one can avoid such stocks.

10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of L&T

Top#6 – KPR Mills – Potential upside of 45% from CMP

This stock is one of the recommended Diwali stock picks from Yes Securities and ICICIDirect with highest potential upside of 45% of current market price. Here is how the stock price has moved in the last 5 years. The stock price has appreciated by 93% in the last 5 years and 11% up from pre-covid level.

10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of KPR Mills

Top#7 – APL Apollo Tubes – Potential upside of 16% from CMP

This stock is one of the recommended Diwali stock picks from IDBI Capital and Sharkhan with highest potential upside of 16% of current market price. Here is how the stock price has moved in the last 5 years. The stock price has appreciated by 511% in the last 5 years and 54% up from pre-covid level. This company has posted good Q2 results where Q2 revenues increased by 33% and profits by 72% YoY. One of the good stock to invest.

10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of APL Apollo Tubes Limited

Top#8 – Radico Khaithan – Potential upside of 30% from CMP

This stock is one of the recommended Diwali stock picks from Yes Securities and HDFC Securities with highest potential upside of 30% of current market price. Here is how the stock price has moved in the last 5 years. The stock price has appreciated by 277% in the last 5 years and 6% up from pre-covid level.

10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of Radico Khaitan

Top#9 – Axis Bank – Potential upside of 18% from CMP

This stock is one of the most recommended Diwali stock picks from Kotak Securities and HDFC Securities with highest potential upside of 18% of current market price. Here is how the stock price has moved in the last 5 years. The stock price has appreciated by 12% in the last 5 years and down by 28% from the pre – covid level. This is due to the fear of an increase in NPAs due to covid-19. Q3 and Q4 are crucial for banks where we can see real NPAs coming up as moratorium period is over by Q2. While the stock might go up in the short term of less than 2 months, we can see real picture only after Q3 results which would be around mid of Jan, 2021.

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10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of Axis Bank

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Top#10 – Kotak Mahindra Bank – Potential upside of 16% from CMP

This stock from banking is of the most recommended Diwali stock picks from Yes Securities and Sharekhan with highest potential upside of 16%  of current market price. Here is how the stock price has moved in the last 5 years. The stock price has appreciated by 145% in the last 5 years and down by 2% from the pre – covid level. Again here also this is due to the fear of an increase in NPAs due to covid-19. Stock might go up in short term till Dec, 2020, but we can see real picture only after Q3 results which would be mid of Jan, 2021.

10 Recommended Diwali Stock Picks for 2020-2021 - Price chart of Kotak Bank

Disclaimer: Currently I do not own any of the above stocks as on 8th November, 2020. However, I can purchase them any time in the coming days.

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Suresh KP

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