Stocks to buy: Swiggy, BEL among 5 tech picks, Dixon among 5 funda calls this Diwali

Centrum Broking’s list of top 10 stock picks for Samvat 2082 featured five fundamental calls and five technical ideas. Its fundamental picks included Dixon Technologies, Azad Engineering, Syrma SGS Technology, Canara Bank, and Cholamandalam Investment & Finance Company Ltd (CIFC). Technical ideas included Swiggy, FSN E-Commerce Ventures (Nykaa), KEI Industries, Bajaj Auto, and Bharat Electronics Ltd (BEL).

Dixon Technologies

Centrum said Dixon Technologies is the largest mobile phone manufacturer in India, accounting for two out of every ten phones made in the country, outperforming even Foxconn (iPhones) and Samsung. Smartphone volumes stood at 9.6 million in Q1FY26, and the company expects a healthy order book to drive 15 per cent quarter-on-quarter volume growth in Q2FY26. With Longcheer’s India volumes at 25 million and a 51 per cent JV with Vivo planned for FY27, growth is imminent. Centrum Broking values the company at 67x its Q2FY28E trailing twelve months EPS, with a target price of Rs 21,574.

Azad Engineering

Azad Engineering is a precision engineering company supplying life- and mission-critical components to the Oil & Gas, Aerospace, Defence, and Power Utilities sectors. The company’s diversified order book of over Rs 6,000 crore underpins management’s confidence, supporting 25–30 per cent revenue growth in FY26 driven by healthy visibility and strategic capacity expansion.

Given a strong order book of Rs 6,000 crore, the company has a projected FY27 book-to-bill ratio of 10x. Margins at both EBITDA and PAT levels have consistently expanded alongside aggressive capacity expansion. Although the stock currently trades at a rich P/E of 106, Centrum values Azad at 65x Q2FY28E EPS of Rs 33, translating to a target price of Rs 2,145, implying a 31 per cent upside over one year.

Syrma SGS Technology

Syrma SGS is an Indian Electronics Systems Design and Manufacturing (ESDM) company with over four decades of industry expertise. Management expects 30–35 per cent revenue growth in FY26 with improved EBITDA margins of 8.5–9 per cent, driven by a strong order book and focus on high-margin segments.

With operating income expected to grow at a CAGR of 30 per cent over the next two years and PAT margins stabilizing at around 7 per cent, together with margin expansion from the PCB business, Centrum values the company at a P/E of 45x FY27E EPS of Rs 23, giving a target price of Rs 1,035, indicating an upside of around 25 per cent.

Canara Bank

The PSU bank is the fourth-largest public sector bank, leveraging scale and operational synergies. Its market share stands at 5.8 per cent in net advances and 6.4 per cent in total deposits as of June 2025. Centrum Broking noted that Canara Bank has seen a steady decline in NPAs over the past three years, with NIMs stabilizing at around 2.4 per cent. NIMs are expected to gradually improve to 2.7–2.8 per cent between FY27 and FY28. The stock is valued at 1.2x FY27E ABV of Rs 126, giving a one-year target price of Rs 151, implying an 18 per cent upside.

Cholamandalam Investment & Finance Company Ltd (CIFC)

CIFC is a leading diversified NBFC and a key subsidiary of the Murugappa Group. The company maintains Rs 17,226 crore in liquid assets, ensuring sound asset-liability management with no negative mismatches, and expects full-year disbursement growth of around 10 per cent.

Centrum Broking said CIFC is expected to overcome its Q2FY26 challenges, sustain a 20 per cent CAGR as guided by management, and expand NIM by around 15 basis points. The company is valued at 4.5x Q2FY28 BV of Rs 430, giving a one-year target price of Rs 1,935, indicating an upside of 17.5 per cent.

Technical picks

Nykaa:The Nykaa stock prices continue to traded in higher & higher bottom formation. The prices continue to trade above the cup & handle breakout . The neckline is placed near 230 levels which coincides with its 50 EMA & the 200
SMA is placed near 197 levels. The pattern upside, Centrum Broking said, signals near Rs 300-320 levels. The RSI is very comfortable on the bullish zone. 

Swiggy: The stock prices continues to trade in higher top higher bottom formation in an uptrend channel. On the weekly time frame the stock prices have formed a bullish engulfing & retested the previous rectangle breakout. The RSI has also formed a positive reversal adding further bullishness. An initial upside can be expected near Rs 480 followed by Rs 517.

KEI Industries: The stock has been consistently forming higher highs and higher lows, moving within a rising channel. It is trading well above all its short-term and long-term moving averages, showing strong upward momentum. Momentum indicators and oscillators have given a buy signal on both the daily and weekly charts, confirming the positive trend.
On the weekly chart, the stock has also broken out above a falling trend line. Based on this setup, the stock is expected to move towards new record highs near Rs 5,051, with support placed at the 100-DMA around Rs 3,881. 

Bajaj Auto: The stock has formed a solid base and moved above its key shortterm and long-term moving averages. It has strong support at the long-term 200-DMA, placed near 8,250. Earlier, a golden crossover occurred as the 50-DMA crossed above the
200-DMA, indicating the potential start of a bullish trend. Momentum indicators and oscillators have given a buy crossover on both the daily and weekly charts, confirming positive momentum. Based on this setup, the stock is expected to move towards the Rs 11,000 level, with strong support at Rs 8,250.

BEL: The stock is on the verge of a triangle pattern breakout on the daily chart. It is trading well above all its short-term and long-term moving averages, indicating strong bullish momentum. The recent price action, supported by higher-than-average volumes, further strengthens the positive outlook. Based on this setup, the stock is expected to move towards new record highs near Rs 500, with strong support placed at Rs 369.