Kotak's 10 picks for ahead of the festive season

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• Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate.
• While 21-26% medium-term earnings expansion and 19-20% RoE offer a compelling growth-profitability combination, he observed that declining credit costs and Fin-AI-led operating leverage should backing RoA expansion.
• We expect Eternal to deliver a robust 49% revenue CAGR over FY26-29E, led by rapid expansion in quick commerce and sustained expansion in food delivery.
• Understanding business to figure out the mystery: Power Grid Corp – Part 1.
• The recent MUFG capital infusion and AAA rating upgrade provide a structural funding advantage to Shriram Finance, according to the analyst from Kotak Securities.

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Which stocks should you purchase ahead of the festive season? Here are Kotak Securities' top 10 picks. ETMarkets.comLast Updated: Sep 04, 2026, 12: 00: 00 PM IST.

India's festive season is projected to drive a robust consumption boost, with analysts identifying sectors and stocks that could benefit. The period from Ganesh Chaturthi through Navratri, Dussehra, Dhanteras, Diwali and the wedding season typically brings higher footfalls, orders, ticket sizes and margins.

India is all set to welcome the festive season, with analysts noting which sectors and stocks may benefit as the domestic consumption engine speeds up against the backdrop of a stellar and cherished lineup of festivities. Every year, the festive season shines up with Ganesh Chaturthi, with the crescendo building up through Navratri and Durga Puja, and the finale landing on Dhanteras and Diwali before the wedding season takes over. This is accompanied with higher footfalls, orders, ticket sizes and margins.

This year's festive season comes at a crucial juncture. After the outbreak of the US-Iran conflict earlier this year, oil costs have seen a skyrocketing rally and spiked inflationary worries. Bajaj Broking in its monthly outlook report highlighted that this has rose input cost pressures and injected fresh uncertainty into corporate and consumer decision-making. Over the last two months, most of the market commentaries pointed towards a stronger consumer demand during the festive season despite implications of the war, the domestic brokerage nevertheless observed, adding that consumer firms, retailers, automobile manufacturers and e-commerce platforms are broadly preparing for high single-digit to low double-digit expansion in festive demand, backed by urban consumption resilience, easier financial conditions and the continued premiumisation trend throughout product categories. What's boosting hopes for a solid festive season?

While reservations prevail, urban demand continues to remain resilient. Solid employment conditions in services sectors, healthier household balance sheets and moderating borrowing costs are anticipated to backing discretionary spending, the domestic brokerage remarked, adding that retail financing, consumer durable loans, vehicle financing and credit card spending typically accelerate during the festive period, amplifying purchasing power. Live Events.

Meanwhile, aggressive promotional campaigns from retailers and e-commerce platforms are probable to stimulate sales throughout categories ranging from smartphones and electronics to apparel and home improvement products, it continued. "Demand throughout premium automobiles, smartphones, jewellery, travel, hospitality and branded apparel has consistently outpaced mass-market segments as higher-income consumers remain relatively insulated from inflationary pressures. Market commentaries suggest that almost 45% of consumers intend to rise festive spending this year, with purchase intentions strongest for jewellery, home appliances and personal gadgets, " Bajaj Broking noted. Which sectors will outperform this festive season?

Further, it believes e-commerce is additionally anticipated to remain a major beneficiary of rose demand during the festive season. India's festive shopping ecosystem has become increasingly digital, with Tier- II and Tier-III cities emerging as powerful demand centres. Industry studies indicate that smaller cities now contribute a disproportionately sizeable share of festive online demand, reflecting improving internet penetration, digital payments adoption and logistics infrastructure. From an investment perspective, Bajaj Broking believes that the festive season represents an significant test of earnings momentum for the second half of FY27. Solid festive demand would backing corporate revenue expansion throughout retail, consumer discretionary, automobiles, hospitality and financial services. Conversely, any weakness in rural spending, combined with inflationary pressures, could temper earnings expectations and keep margins under pressure, according to the brokerage. As well as home improvement solution providers like paints, tiles, etc, ahead of the festive season, Sunny Agrawal, Head of Fundamental Research at SBI Securities, notes that investors should focus on consumer facing non banking financial businesses (NBFCs), like the ones who focus on auto, home loan and gold loan, along with auto and auto ancillary, consumption especially discretionary like jewellery, travel, hotel, QSR, fashion brands. "For equity markets, a measured and selective approach remains appropriate in the near term. Valuations in a number of consumer-facing segments already discount a meaningful demand recovery, leaving limited room for disappointment. Furthermore, developments in crude oil rates, inflation trends and monsoon outcomes will continue to influence market sentiment and earnings expectations over the next few months, " Bajaj Broking concluded. Overall, Bajaj Broking feels that consumer durables and retail have particularly higher sensitivity to festival season, followed by automobiles and private banks or NBFCs. While that for FMCG is medium and low for IT services, hospitality has a medium-high sensitivity. 10 stocks that will remain in spotlight.

Shrikant Chouhan, Head Equity Research at Kotak Securities, listed out 10 stocks on which the brokerage has a positive view ahead of the festive season, against the backdrop of expectations of a surge in discretionary spending. 1. M&M.

M&M is projected to continue outperforming industry expansion throughout tractor and CV segments and a robust product launch cycle should support sustain SUV segment leadership, Chouhan noted. He observed that the business aspires its SUV segment volumes to grow by mid-high teens yoy in FY27E. LCV cycle is additionally probable to continue its momentum. It aids well for the firm. "M&M continues to execute well by maintaining a leadership position in all three segments, an improvement in return ratios and cash flow generation, " the analyst further highlighted. 2. Eicher Motors.

For context, the analyst expects Royal Enfield's domestic volume expansion momentum to continue at a healthy pace, and believes that the capacity expansion along with model launches augurs well for the business. A potential entry into the 250 cc segment could further widen the addressable market and attract younger consumers, he remarked, adding that the aspirational nature of brand and growing disposable income should benefit Royal Enfield's demand. "We expect gradual improvement in profitability, driven by price increases, value engineering and control over other costs, " he further remarked. Which auto stocks should you purchase after August sales? Here are Nomura, other brokerages' top picks 3. Eternal.

Zomato and Blinkit-parent Eternal is a leading Indian internet firm operating food delivery, quick commerce (Blinkit), going-out (District), and B2B supplies (Hyperpure), Chouhan observed, adding that the firm is transforming into a diversified consumer-tech platform, with Blinkit emerging as the key expansion engine. "We expect Eternal to deliver a robust 49% revenue CAGR over FY26-29E, led by rapid expansion in quick commerce and sustained expansion in food delivery. As scale improves and operating leverage strengthens, we forecast EBITDA margins to expand from 2.2% in FY2026 to 5.3% in FY29, driving a meaningful improvement in profitability, " he wrote. 4. Nykaa.

FSN E-Commerce Ventures' Nykaa is a leading omnichannel beauty, personal care and fashion retailer with a growing portfolio of owned brands. The firm expects robust long-term expansion, driven by premiumization, AI-led personalization, faster deliveries, category expansion, and continued investments in customer acquisition, Chouhan observed, adding that improving operating leverage and the scaling up of its beauty, fashion, and owned-brand businesses are projected to backing profitability. "We remain positive on the stock given its strong growth outlook and improving earnings profile." 5. Apollo Hospitals.

Apollo Hospitals remains Kotak's preferred hospital pick. "We like the combination of solid existing-hospital performance, manageable capacity expansion, improving pharmacy profitability and the approaching digital breakeven. Valuations appear reasonable for the quality and expansion visibility, " stated Chouhan. 6. Dr. Lal PathLabs.

Dr. Lal PathLabs is one of India's leading diagnostic chains, offering pathology and preventive healthcare services through its extensive network of laboratories and collection centres. According to The analyst from Kotak Securities, the business is seeing a steady recovery in test volumes, with Q1FY27 sample volumes growing 11% YoY. Realization per test additionally climbed around 8%. For context, the turnaround in Suburban Diagnostics and calibrated network expansion should further backing volume expansion, he noted. "With management now expecting mid-teens revenue growth in FY27, we expect sales and earnings to remain on a healthy trajectory, with EBITDA and adjusted EPS CAGR of 16% and 15%, respectively, over FY26-29, " he continued. 7. ICICI Bank.

Adding to the slew of bullish brokerage calls for ICICI Bank, Shrikant Chouhan observed that the business has delivered best-in-class underwriting and resilient asset quality, with net NPLs at historical lows. While loan expansion recovery and operating leverage provide scope for sustained 15% RoE, he went on, solid liability franchise and pricing discipline should backing NIM resilience. Explained: What $127 billion FCNR(B) inflows mean for ICICI Bank, HDFC Bank, other bank stocks 8. Axis Bank.

Naming Axis Bank as another festive pick, Chouhan remarked the lender's retail franchise offers significant expansion potential through mortgages, affordable housing, gold and education loans. While lower credit costs and better loan mix provide a path toward improving RoE and potential valuation re-rating, technology-led execution and improving branch productivity should drive operating leverage. 9. Shriram Finance.

For context, the recent MUFG capital infusion and AAA rating upgrade provide a structural funding advantage to Shriram Finance, according to the analyst from Kotak Securities. He observed that lower borrowing costs and improved leverage should backing margin expansion and 16% medium-term RoE. Solid asset-quality performance and shift toward newer, lower-risk vehicles backing sustainable 17-18% medium-term AUM expansion, he further remarked. 10. Bajaj Finance.

Solid 22% AUM expansion demonstrates continued momentum throughout its diversified lending franchise were the key factors highlighted by Chouhan as he named Bajaj Finance as one of his festive picks. While 21-26% medium-term earnings expansion and 19-20% RoE offer a compelling growth-profitability combination, he observed that declining credit costs and Fin-AI-led operating leverage should backing RoA expansion. Why caution is warranted.

Nevertheless, the outlook is not risk-free. Monsoon is the most immediate concern, according to Bajaj Broking. It observed that India's southwest monsoon has underperformed expectations, with cumulative rainfall running almost 14% below normal by the end of August. Additionally, almost 47% of India's districts have received deficient or large-deficient rainfall, according to IMD data. While agriculture is the obvious victim to deficient rainfall, the implications extend well beyond agriculture. Rural India accounts for a substantial share of demand for two-wheelers (at regarding 55-56%), entry-level automobiles (50%), consumer durables (6-7%), FMCG products (51%) and discretionary purchases (45%) during the festive season, the brokerage stated, adding that a weaker kharif harvest and lower farm incomes could weigh on spending sentiment throughout substantial parts of the country. Inflation is another key variable. The combination of elevated crude oil rates, supply-chain disruptions and weather-related pressures on agricultural output poses an upside risk to inflation during the festive quarter, according to Bajaj Broking. Bigger market crash ahead? Analysts weigh how Sensex, Nifty may react if US 10-year bond yield touches 5% (With inputs from agencies) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times).

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Top Trending Stocks: SBI Share Cost, Axis Bank Share Rate, HDFC Bank Share Cost, Infosys Share Rate, Wipro Share Cost, NTPC Share Rate. Nykaashriram financeaxis bankbajaj financeapollo hospitalsdr. Lal pathlabseternalicici bankfestive seasonKotak Securities. Is crude oil becoming a financial difficulty? Patent Cliff approaching: Can Indian pharma firms repeat past success? Q1 investment numbers look stellar, but are we celebrating too early?

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In short, kotak' s 10 picks for ahead of the festive season is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.