Ambareesh Baliga Recommends 5 Stocks for Diwali with Up to 38% Gains

As the Diwali festival approaches, seasoned fundamental analyst Ambareesh Baliga has unveiled a list of five stocks with promising upside potential ahead of the festive season. With the Indian stock market attracting renewed investor interest, Baliga’s picks are drawing attention for their solid growth prospects and strategic positioning in their respective sectors.

Baliga’s selections include Endurance Technologies, Himadri Speciality Chemicals, Borosil Renewables, Archean Chemicals, and Urban Company. Each stock demonstrates unique strengths that could translate into meaningful returns over the coming months.

Endurance Technologies: A Strong Contender in Auto Components

Endurance Technologies currently trades at Rs 2,688, with Baliga targeting a price of Rs 3,420. This suggests an approximate 27% upside. The company is well-recognized for its expertise in aluminium die-casting and is expanding its product lineup to cater to the electric vehicle (EV) segment. Its diversified portfolio now includes components for four-wheelers as well as non-automotive sectors, which is expected to underpin long-term growth.

Endurance’s focus on EV-specific products positions it favorably in an industry gradually shifting towards cleaner technologies. Given the government's push towards electric mobility and increasing consumer demand for EVs, the company’s strategy aligns well with broader trends.

Himadri Speciality Chemicals: Expanding in Advanced Materials

Himadri Speciality Chemicals is valued at Rs 675 currently, while Baliga’s target price is Rs 840, indicating nearly 25% potential gains. The company’s growth is driven by its expansion into lithium-ion battery materials, including lithium iron phosphate (LFP) and carbon nanotubes. These are critical components for energy storage and advanced electronics.

Strong first-quarter results have reinforced confidence in Himadri’s business model. Furthermore, the firm’s ambitious expansion plans could add up to Rs 30,000 crore in revenue, reflecting its commitment to scaling operations in emerging sectors.

Borosil Renewables: Benefiting from Solar Demand and Trade Protections

Borosil Renewables is currently priced at Rs 471, with a target of Rs 580 from Baliga. This implies an upward potential of over 23%. The company is undergoing a capacity expansion to 1,600 tonnes per day (TPD), a move expected to meet growing solar glass demand driven by India’s renewable energy initiatives.

Trade duties imposed on imports from China and Malaysia serve to protect Borosil’s market share domestically. This shielding from foreign competition helps the company maintain pricing power and improve margins, key factors in its expected growth trajectory.

Archean Chemicals: Entering the Semiconductor Space

Archean Chemicals stands out with the highest projected upside among Baliga’s picks, at nearly 38%. Currently trading at Rs 479, the target price is Rs 660. The company benefits from high entry barriers in its sector, which limits competition. It is also expanding into the semiconductor materials space through its SicSem unit.

Analysts forecast that Archean’s revenue and EBITDA could grow at compound annual growth rates of 20% and 42%, respectively. Improving EBITDA margins further enhance the company’s earnings potential, making it a compelling consideration for investors looking for high-growth opportunities.

Urban Company: Riding the Wave of Organised Home Services

Urban Company, currently at Rs 173, has a target price of Rs 210, indicating over 21% upside. The company has seen rapid growth in online home services, driven by increased adoption of digital platforms. A notable trend is the shift from unorganised to organised service providers, benefiting firms like Urban Company that offer reliable, vetted services.

Additionally, Urban Company’s InstaHelp platform adds a long-term growth dimension by addressing health and wellness needs. This diversified approach supports a positive outlook for sustained expansion in the home services sector.

These recommendations come from Ambareesh Baliga, a SEBI-registered market analyst (Regn. No. INH000001139). He and his family hold no financial interests in the stocks mentioned, ensuring unbiased guidance. Investors are encouraged to review the original research reports and conduct their own evaluations before making investment decisions.

Baliga’s picks reflect broader market themes, including the shift toward electric vehicles, renewable energy, advanced materials, and digital service platforms. These sectors are gaining momentum in India’s evolving economic landscape, presenting potential growth avenues for investors ahead of the festive season.