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Diwali Stock Picks 2025 | Bajaj Broking Research Desk
By Bajaj Broking Team
October 17, 2025
2 mins read
Quarterly Results
Diwali, as a festival, not only brings joy and happiness but also marks new beginnings for investors around the country. New investors start their investment journey believing that it’s an auspicious day. On the other hand, seasoned investors review their portfolios, diversify if needed, and develop a new strategy, modifying it to start fresh.
Bajaj Broking Research Desk has handpicked stocks to help investors make auspicious buys for Diwali 2025. Backed by in-depth analysis, these picks offer earning potential with upside within a 12-month horizon.
Here’s a detailed breakdown of each stock, including its technical patterns, buying range, target prices, and expected upside.
Reliance Industries Ltd
CMP: ₹1,406 | Target Price: ₹1,540 | Upside: 10% | Time Horizon: 1 Year
Technical Outlook
Reliance Industries has been in a corrective phase for the past three months and is currently consolidating near a crucial support zone. This setup provides a favourable risk-to-reward outlook and signals potential for a bullish reversal within the primary uptrend.
The stock is forming a base near the ₹1,320–₹1,360 zone, supported by multiple technical factors:
- 50% retracement of the previous April–June 2025 rally from ₹1,115 to ₹1,551.
- 52-week EMA is placed close to ₹1,360, reinforcing dynamic support.
- The previous breakout area near ₹1,330 now acts as a support zone.
On the weekly chart, the time–price relationship shows the stock took 13 weeks to retrace only 50% of the previous 13-week rally, reflecting a shallow correction and structural strength. The corrective phase appears nearly complete, with a possibility of resumption of an upward move. A retest of the prior high around ₹1,540 looks likely within the set horizon.
- Reliance Industries continues to maintain its higher-base formation around ₹1,320–₹1,360.
- The 52-week EMA is serving as a reliable long-term support.
- RSI remains near neutral levels and shows early signs of positive reversal.
Bharat Electronics Ltd (BEL)
CMP: ₹418 | Target Price: ₹467 | Upside: 12% | Time Horizon: 1 Year
Technical Outlook
Bharat Electronics continues to maintain a strong primary uptrend, forming a consistent higher-high, higher-low structure on the weekly timeframe. The price action remains well above major moving averages, confirming sustained bullish momentum.
The stock has recently broken out above a falling trendline resistance. This breakout, coupled with support from the 21-week EMA near ₹375, underlines a constructive price setup.
Momentum indicators are positive, with RSI staying above 50 and showing a rising trajectory. The trend is supported by increased trading volume, which reinforces institutional participation and conviction in the ongoing rally.
Based on the report analysis, BEL is expected to move toward ₹467, which aligns with the 138.2% Fibonacci extension of its recent swing. The structure remains positive as long as the price holds above ₹375.
- The stock continues its higher-high, higher-low pattern, confirming trend strength.
- Support lies at ₹375, corresponding to the 21-week EMA.
- With a clear breakout structure, BEL remains positioned for an advance toward ₹467 within the one-year horizon.
JSW Energy Ltd
CMP: ₹544 | Target Price: ₹598 | Upside: 10% | Time Horizon: 1 year
Ambitious Growth Vision: Strategy 3.0
JSW Energy has entered a transformational phase under Strategy 3.0, which aims to achieve 30 GW of generation capacity and 40 GWh of energy storage by FY30. In Q1 FY26, the company added 1.9 GW, taking its installed capacity to 12.7 GW.
Currently, 12.9 GW of projects are under construction, all backed by long-term power-purchase agreements (PPAs). An additional 4.561 GW is at the LOI/LOA stage, bringing the total locked-in capacity to 30.3 GW. This firmly aligns JSW Energy with its decade-end expansion goals.
Strategic Acquisitions Fuelling Scale
JSW Energy continues to scale through targeted acquisitions. The KSK Mahanadi acquisition adds 3.6 GW of thermal capacity, of which 1.8 GW is operational and largely PPA-backed, while the balance can be commissioned cost-effectively.
Additionally, the O2 Power platform contributes 4.7 GW of renewable assets with robust land access and grid readiness. Together, these acquisitions significantly strengthen JSW Energy’s ability to accelerate capacity additions across solar and wind segments.
Energy Storage
As India’s power grid evolves, energy storage is becoming critical to ensuring reliable renewable supply. JSW Energy has positioned itself strongly with 29.4 GWh of locked-in storage capacity, including two 12 GWh pumped-hydro projects — one with MSEDCL and another with UPPCL.
The company is also active in the Battery Energy Storage System (BESS) segment, where multiple projects are in development. A key appeal related to the SECI BESS tender is currently pending at APTEL, underscoring management’s commitment to securing a leading role in this emerging market.
Execution Strength & Cost Efficiency
FY25 underscored JSW Energy’s execution excellence. The company commissioned 1.3 GW of wind capacity organically, accounting for roughly one-third of India’s total wind additions during the year.
To improve execution speed and cost control, JSW Energy is setting up in-house wind-blade manufacturing facilities, enabling compliance with domestic-content regulations while optimising project timelines and expenses.
Financial Strength & Prudent Capital Allocation
Despite its aggressive growth plans, JSW Energy maintains strong financial discipline. A ₹1.3 trillion capex pipeline is planned through FY30, to be executed within a defined capital-efficiency framework.
Leverage levels remain comfortable, with Net Debt to EBITDA at ~5.3× (FY27E) and Net Debt-to-Equity at ~1.8×, supported by stable PPA-backed cash flows. This prudent capital structure provides a solid foundation for sustainable expansion and shareholder value creation.
Shareholding (%)
Particulars | Q1FY26 | Q4FY25 | Q3FY25 |
Promoter | 69.26 | 69.26 | 69.32 |
FII | 12.36 | 13.43 | 14.57 |
DII | 11.43 | 10.94 | 10.05 |
Public | 6.93 | 6.35 | 6.07 |
Promoter Pledge – 13.33%
Financials (₹ Million)
Particulars | FY25 | FY26E | FY27E |
Revenue | 1,17,454 | 2,14,920 | 2,65,982 |
Gross Profit | 71,490 | 1,32,712 | 1,63,093 |
EBITDA | 52,208 | 98,226 | 1,19,932 |
EBIT | 35,662 | 66,008 | 78,803 |
PAT | 19,601 | 29,537 | 38,551 |
EPS | 11.23 | 16.93 | 22.09 |
Growth (%) |
|
|
|
Revenue | 2.26 | 82.98 | 23.76 |
Gross Profit | 5.46 | 85.64 | 22.89 |
EBITDA | -2.99 | 88.14 | 22.1 |
EBIT | -4.86 | 85.1 | 19.38 |
PAT | 14.75 | 50.69 | 30.52 |
Margins (%) |
|
|
|
Gross Profit | 60.9 | 61.7 | 61.3 |
EBITDA | 44.4 | 45.7 | 45.1 |
EBIT | 30.4 | 30.7 | 29.6 |
PAT | 16.7 | 13.7 | 14.5 |
Ratios (x) |
|
|
|
EV/EBITDA | 27.4 | 15 | 13 |
DEBT/EBITDA | 9.6 | 5.6 | 5.3 |
DEBT/EQUITY | 1.7 | 1.7 | 1.8 |
P/E | 49.1 | 32.6 | 24.9 |
P/B | 3.2 | 2.9 | 2.7 |
ROE | 6.7 | 9.4 | 11.1 |
ROCE | 4.6 | 8.1 | 8.6 |
Suzlon Energy Ltd
CMP: ₹53 | Target Price: ₹70 | Upside: 32% | Time Horizon: 1 Year
About the Company
Suzlon Energy Limited is one of India’s popular renewable energy solution providers with an integrated business model encompassing design, manufacturing, installation, and servicing of wind energy projects. Its primary business lies in the Wind Turbine Generator (WTG) and EPC segment, which contributes the majority of its revenue through turnkey wind project execution. Complementing this is the Operations & Maintenance (O&M) division — a recurring, high-margin business that services Suzlon’s extensive installed base across India. This ensures predictable cash flows and operational stability. Suzlon also benefits from vertical integration via its wholly owned subsidiary, SE Forge, which manufactures key turbine components such as forgings and castings. Looking ahead, Suzlon is actively expanding into hybrid and solar energy solutions, reinforcing its leadership in India’s clean-energy transition.
Macro Tailwinds: India’s Renewable Boom
India’s renewable energy ambitions provide a strong growth runway for Suzlon. The Government of India has set a target of 500 GW of non-fossil fuel capacity by 2030, with wind energy playing a pivotal role. The Indian wind power market stood at 49.8 GW in 2024 and is projected to reach 127.9 GW by 2033, representing a CAGR of 11.04%. With one of the largest domestic manufacturing footprints, a deep supply chain, and a proven track record, Suzlon is ideally positioned to capture a substantial share of this growth and benefit from the sector’s policy-driven momentum.
Orderbook & Revenue Visibility
Suzlon’s growth prospects are underpinned by a robust and expanding orderbook, reflecting strong demand visibility. As of Q1 FY26 (June 30, 2025), the company reported a record firm orderbook of 5.7 GW, its highest ever. Major recent wins include a 100.8 MW order from Sunsure Energy in April 2025 and a landmark 838 MW order from Tata Power Renewable Energy in September 2025. This strong pipeline provides 2.5 – 3 years of revenue visibility, ensuring operational continuity and underpinning medium-term growth forecasts.
Revenue Mix Shift: WTG vs. O&M
Suzlon’s revenue composition is strategically evolving to balance growth with stability. In Q4 FY25, WTG/EPC sales contributed ~80.5% of total revenue, while the O&M business, though smaller in topline share, accounted for ~26% of total operating profit due to its higher EBITDA margin. The O&M segment offers annuity-like cash flows and minimal cyclicality, ensuring consistent earnings even during project down-cycles. This mix enhances Suzlon’s financial resilience and supports sustainable margin improvement over the long term.
Inorganic Growth: Renom Acquisition
In a major strategic move, Suzlon acquired a 76% stake in Renom Energy Services for ₹660 crore, strengthening its presence in the fast-growing O&M market. Renom is a multi-brand O&M service provider with approximately 2.5 GW of assets under management across diverse turbine models. This acquisition allows Suzlon to tap into India’s ~32 GW non-Suzlon O&M market, unlocking new growth opportunities. The deal also enables synergies through cross-selling, shared infrastructure, and operational efficiencies, significantly enhancing Suzlon’s high-margin service portfolio and broadening its recurring-revenue base.
Capex, R&D & Operating Leverage
Suzlon has outlined a capex plan of ₹400–450 crore for FY26, with ₹225–250 crore earmarked for R&D initiatives. These investments are focused on developing next-generation, export-ready turbine models, improving efficiency, and strengthening technological competitiveness. Backward integration through SE Forge is expected to improve utilization rates, absorb fixed costs, and enhance operating leverage. Collectively, these initiatives aim to boost profitability, expand margins, and cement Suzlon’s leadership in cost-efficient, sustainable energy solutions.
Valuation
Suzlon’s proven execution record and strong participation in large-scale renewable tenders support sustained market-share gains. The company now operates on a net-cash balance sheet, significantly improving its financial flexibility and reducing leverage risk. While low promoter holding remains a key monitorable, consistent execution and governance enhancements continue to strengthen investor confidence. Given its robust fundamentals, visibility from a 5.7 GW orderbook, and improving margin profile, a BUY recommendation is maintained with a target price of ₹70, based on a 33× P/E and 24× EV/EBITDA multiple on FY27E earnings.
Shareholding (%)
Particulars | Q2FY26 | Q1FY26 | Q4FY25 |
Promoter | 11.73% | 11.75% | 13.25% |
FII | 22.70% | 23.02% | 23.04% |
DII | 10.14% | 10.17% | 8.73% |
Others | 55.40% | 55.07% | 54.98% |
Financials (₹ Million)
Particulars | FY25 | FY26E | FY27E |
Revenue | 10889.7 | 17063.0 | 24086.0 |
EBITDA | 1857.2 | 2878.7 | 3924.2 |
PAT | 1446.6 | 2079.7 | 2912.5 |
EPS | 1.05523 | 1.52 | 2.12 |
Growth (%) | |||
Revenue | 66.8 | 56.7 | 41.2 |
EBITDA | 80.5 | 55.0 | 36.3 |
PAT | 119.1 | 43.8 | 40.0 |
Margins (%) | |||
EBITDA Margin | 17.1 | 16.9 | 16.3 |
PAT Margin | 13.3 | 12.2 | 12.1 |
Valuation | |||
P/E | 52.1 | 36.3 | 25.9 |
P/B | 12.3 | 9.2 | 6.8 |
EV/EBITDA | 40.2 | 25.9 | 18.8 |
DEBT/EQUITY | 0.0 | 0.0 | 0.0 |
ROCE (%) | 24.2 | 32.2 | 33.7 |
ROE (%) | 23.7 | 25.4 | 26.2 |
Sagility India Ltd
CMP: ₹46 | Target Price: ₹54.6 | Upside: 19% | Time Horizon: 1 Year
Business Overview
Sagility (SIL) is a leading healthcare business process management (BPM) company offering end-to-end services across claims operations, member engagement, provider network operations, clinical solutions, and payment integrity. The company primarily serves payers, which contribute around 88% of total revenue, while providers such as hospitals, clinics, and DME firms account for the remaining 12%. This diversified client base creates a strong payer–provider synergy, positioning Sagility as a key enabler across the healthcare value chain.
Client Concentration & Market Opportunity
While Sagility’s top three clients contribute nearly 65% of revenue, these relationships are long-standing, averaging 17 years, providing stability and visibility. The U.S. healthcare outsourcing market, valued at $45 billion, remains underpenetrated, with only 20–23% currently outsourced, leaving significant room for expansion. As of Q1 FY26, Sagility had 77 active clients, including four new additions during the quarter. The company’s limited exposure to Medicaid and Medicare pricing pressures, coupled with its AI-driven solutions, reduces operational risk and enhances wallet share. Recent USD 32 million in annual contract value (ACV) deal wins further diversify revenue streams and reinforce its growth momentum.
Organic & Inorganic Growth
Sagility continues to scale through both organic and inorganic initiatives. Organic growth stood at 17.9% YoY in Q1 FY26, driven by adoption of AI, ML, and hyper-automation to improve efficiency and deepen client engagement. On the inorganic front, the acquisitions of BroadPath (2024), Devlin, and BirchAI have expanded the company’s domain expertise, client portfolio, and cross-sell potential. Currently, 18 AI-led use cases are deployed across eight clients, with another 15+ in development. These technology-driven initiatives enhance accuracy, operational speed, and client outcomes—positioning Sagility as a high-value digital transformation partner in healthcare outsourcing.
Revenue & Financials
Revenue growth remains broad-based and sustainable, with payer revenue up 22% YoY and provider revenue up 31% YoY. The company expects FY26 growth above 20%, supported by new contracts and higher client penetration. Adjusted EBITDA margin stands at 22%, aided by automation, scale benefits, and cost efficiencies. With operating cash flow to EBITDA at ~90%, Sagility maintains strong cash generation and financial flexibility to reinvest in growth and innovation.
Operational Footprint & Workforce
Sagility employs approximately 39,900 professionals across its global delivery network. Key delivery hubs are located in Bengaluru and Coimbatore (India) and Quezon City (Philippines), with additional operations in the U.S., Jamaica, and Colombia. This diversified footprint enhances delivery resilience, cost optimization, and proximity to clients in key healthcare markets.
Valuation
Sagility is valued at 28x FY27E EPS, reflecting its strong growth visibility, margin resilience, and consistent cash generation. A moderate discount to sector leaders accounts for the ongoing integration of BroadPath. This valuation yields a target price of ₹54.6, implying 19% upside from current levels. The model factors in ~20% consolidated revenue growth in FY26, EBITDA margins above 23% by FY27, and a 30%+ EPS CAGR over FY25–27E — driven by client expansion, cross-selling opportunities, and continued operational efficiency gains.
Shareholding (%)
Particulars | Q1FY26 | Q4FY25 | Q3FY25 |
Promoter | 67.38 | 67.38 | 82.39 |
FII | 5.59 | 5.99 | 3.39 |
DII | 14.87 | 14.07 | 7.47 |
Public | 12.15 | 12.57 | 6.75 |
Promoter Pledge – 2.25%
Financials (₹ Million)
Particulars | FY25 | FY26 | FY27 |
Revenue | 55,699 | 66,839 | 75,528 |
EBITDA | 12,979 | 14,572 | 17,599 |
EBIT | 8,873 | 9,849 | 13,245 |
PAT | 5,391 | 6,490 | 9,160 |
EPS | 1.17 | 1.39 | 1.96 |
Growth (%) | |||
Revenue | 17.2 | 20.0 | 13.0 |
EBITDA | 19.3 | 12.3 | 20.8 |
EBIT | 107.9 | 11.0 | 34.5 |
PAT | 136.2 | 20.4 | 41.1 |
Margins (%) | |||
EBITDA Margin | 23.3 | 21.8 | 23.3 |
EBIT | 15.9 | 14.7 | 17.5 |
PAT Margin | 9.7 | 9.7 | 12.1 |
Tax Rate | 29.1 | 25.0 | 25.0 |
Valuation | |||
PE | 38.5 | 32.4 | 23.0 |
ROE | 6.5 | 7.2 | 9.3 |
ROCE | 8.9 | 9.9 | 12.6 |
EV/EBITDA | 16.7 | 14.4 | 11.2 |
DEBT/EQUITY | 0.13 | 0.04 | -0.09 |
Jayaswal Neco Industries Ltd
CMP: ₹69 | Target Price: ₹92 | Upside: 32% | Time Horizon: 1 Year
About the Company
Jayaswal Neco Industries Ltd. (JNIL), established in 1972 as a private foundry in Nagpur, has evolved into one of India’s leading integrated alloy steel and castings manufacturers. Over the past decade, the company has successfully navigated a challenging financial phase — including a near referral to the Insolvency and Bankruptcy Code (IBC) — by undertaking asset monetization, refinancing, and capacity ramp-ups.
Today, JNIL operates as a cost-efficient, integrated steel producer with captive iron ore mines, pelletisation facilities, power generation, and downstream steel capacity. This vertically integrated structure provides strong operational control, cost efficiency, and a solid foundation for sustainable long-term growth.
Iron Ore Mining Operations – Strong Captive Resource Advantage
JNIL has a significant captive resource advantage through two operational iron ore mines in Chhattisgarh — Metabodeli (1 MTPA, valid till 2052) and Chotedongar (2.95 MTPA, valid till 2055). Combined, these mines provide 3 MTPA of active capacity against a total approved 4 MTPA.
The company has also applied for an additional 3 MTPA expansion, with environmental clearance expected in the coming months. Once approved, JNIL’s total mining approval will rise to 7 MTPA, ensuring long-term raw material security till 2055. This self-sufficiency in ore supply significantly reduces dependency on external sourcing and enhances cost competitiveness.
Pelletisation and Beneficiation – EBITDA Accretive Expansion
JNIL currently operates a 1.5 MTPA pellet plant and has announced plans to expand capacity with an investment of ₹6,400–6,500 million over the next two years, subject to funding and internal accruals. Given industry pellet margins of ₹1,000–1,500 per ton, this expansion is expected to add substantial incremental EBITDA.
The company also operates a 1.5 MTPA coal washery, with another 1.5 MTPA unit scheduled for commissioning by October 2025. This expansion is projected to generate annual cost savings of ₹800–900 million, strengthening JNIL’s cost position and overall profitability.
Strengthening the Balance Sheet through Debt Refinancing
JNIL’s total debt currently stands at around ₹24,100 million. In August 2025, the company refinanced ₹23 billion of high-cost NCDs through Tata Capital at a reduced interest rate of 12.5% per annum and a 72-month repayment tenure. The new structure includes a debt service reserve and flexible early repayment options.
This refinancing replaces the earlier 17.5% borrowing cost, with the full benefit expected by December 2025. Debt obligations of ₹4.79 billion in FY26 and ₹3.83 billion in FY27 are expected to be comfortably serviced through internal accruals.
Additionally, 100% of promoter shareholding (55.2% as of June 30, 2024) will be pledged with the new lenders, with 50% released once half the repayment is completed, thereby improving financial flexibility and lender confidence.
View
Jayaswal Neco Industries has successfully transformed from a stressed asset into a structurally stronger, integrated steel and mining enterprise. With secure mining leases till 2055, ongoing pelletisation and beneficiation expansion, and cost-efficient steel operations, the company is positioned for sustainable earnings growth and margin improvement.
The recent debt refinancing will free up cash flows for capital expenditure and growth, enabling JNIL to emerge as a competitive mid-cap steel player with strong captive resource advantages. However, challenges remain in the form of high promoter pledging, limited banking relationships, and potential delays in environmental clearances for its mining expansion.
Using the EV/EBITDA valuation method and applying a 7x multiple on FY27E earnings, Bajaj Broking Research Desk arrived at a target price of ₹91, reflecting JNIL’s improving fundamentals and strengthened balance sheet.
Shareholding (%)
Particulars | Q2FY26 | Q1FY26 | Q4FY25 |
Promoter | 55.15% | 55.15% | 55.15% |
FII | 1.07% | 0.04% | 0.02% |
DII | 0.51% | 0.00% | 0.00% |
Others | 43.27% | 44.81% | 44.83% |
Financials (₹ Million)
Particulars | FY25 | FY26E | FY27E |
Revenue | 59,997.3 | 67,650.0 | 86,100.0 |
EBITDA | 9,396.9 | 11,838.8 | 15,928.5 |
PAT | 1,126.8 | 4,048.9 | 7,375.0 |
EPS | 1.2 | 4.2 | 7.6 |
Growth (%) | |||
Revenue | 1.1 | 12.8 | 27.3 |
EBITDA | -8.5 | 26.0 | 34.5 |
PAT | -46.3 | 259.3 | 82.1 |
Margins (%) | |||
EBITDA Margin | 15.7 | 17.5 | 18.5 |
PAT Margin | 1.9 | 6.0 | 8.6 |
Ratio (x) | |||
P/E | 62.0 | 17.3 | 9.5 |
EV/EBITDA | 10.3 | 8.1 | 5.8 |
D/E | 1.2 | 1.0 | 0.8 |
ROE | 4.7 | 14.6 | 21.0 |
ROCE | 13.9 | 17.5 | 22.2 |
Senores Pharmaceuticals Ltd
CMP: ₹731 | Target Price: ₹832 | Upside: 14% | Time Horizon: 1 Year
About the Company
Senores Pharmaceuticals Ltd. is an India-based specialty generics and contract manufacturing company focused on regulated markets such as the US, Canada, and select emerging economies. The company operates USFDA-approved manufacturing facilities in both India and the United States and maintains an excellent regulatory track record.
Since its stock-market debut in late 2024, Senores has expanded its commercial portfolio rapidly, supported by an experienced management team of industry veterans. Its growth strategy is centered on new product filings, capacity expansion, and value-accretive mergers and acquisitions, enabling it to scale efficiently in high-value markets.
Robust ANDA Approvals Driving Upcoming Launches
Over the past year, Senores has achieved several key USFDA approvals, including those for Metoprolol Tartrate and Hydrochlorothiazide Tablets and for Tramadol, both of which open access to high-value generic formulations in the US market.
These approvals are expected to meaningfully strengthen the company’s US revenue base from H2 FY26 onward, as new product launches and pending approvals translate into incremental growth and margin expansion.
Monetization of Acquired ANDAs
Senores has strategically expanded its US portfolio by acquiring 14 approved ANDAs from Dr. Reddy’s Laboratories, along with complementary portfolios from other US-based sellers. This acquisition substantially enlarges its addressable market in the United States.
According to management, the commercial rollout of these acquired products will begin in a phased manner from H2 FY26, driving both revenue growth and market-share gains as integration progresses. These acquired ANDAs are expected to deliver meaningful top-line contribution over the next several quarters.
Enhanced Realizations from Emerging Markets
The Emerging Markets (EM) segment, which contributed around 30% of FY25 revenue, is undergoing a strategic repositioning. The company is focusing on niche molecules and expanding its distribution network across new geographies and partners.
This transformation is expected to double revenue per-unit realization, improving both growth momentum and profitability within the EM business. The shift toward higher-value molecules also aligns with the company’s broader objective of building a more sustainable, margin-accretive revenue mix.
Capex Plans and Growth Investments
Senores has advanced its US expansion strategy through focused capital-expenditure initiatives. In early 2025, the company invested USD 1.99 million into its wholly owned subsidiary, Senores Pharmaceuticals Inc. (US), via a rights issue. This infusion supports working-capital requirements and ANDA pipeline development, aligning with its IPO commitments.
In parallel, Senores is expanding its Atlanta manufacturing facility, nearly doubling annual production capacity to 2 billion units. The third and fourth oral-solids manufacturing lines are scheduled to become operational in Q3 FY26 and by year-end FY26, respectively. A sterile injectables line will follow in FY27, broadening the company’s product offerings and strengthening its contract-manufacturing capabilities.
Driving Profitability Through Backward Integration
The company is also enhancing profitability through backward integration. It is expanding its Active Pharmaceutical Ingredient (API) manufacturing unit in Gujarat, which will support key formulations and improve cost efficiency.
This move is expected to yield higher fixed-cost absorption and EBITDA margin expansion in the coming fiscal year, marking a major step toward sustainable bottom-line growth.
Valuation
Senores Pharmaceuticals’ USFDA-approved portfolio, strong ANDA pipeline, and strategic M&A-led expansion underpin a clear growth trajectory. The Emerging Market portfolio repositioning and expanded distribution reach are set to enhance realizations, while US capacity expansion and API backward integration strengthen margins.
We value Senores Pharmaceuticals Ltd. at ₹832, based on a P/E multiple of 30× FY27E earnings, reflecting the company’s high-quality product pipeline, robust regulatory foundation, and multiple value-accretive growth catalysts.
Shareholding (%)
Particulars | Q1FY26 | Q4FY25 | Q3FY25 |
Promoter | 45.78% | 45.78% | 45.77% |
FII | 3.66% | 4.17% | 4.25% |
DII | 9.51% | 9.66% | 11.77% |
Others | 41.03% | 40.39% | 38.20% |
Financials (₹ Million)
Particulars | FY25 | FY26E | FY27E |
Revenue | 3982.5 | 5973.8 | 7288.0 |
COGS | 1807.0 | 2623.9 | 3243.8 |
EBITDA | 897.0 | 1493.4 | 1749.1 |
EBIT | 921.2 | 1508.2 | 1721.5 |
PAT | 583.4 | 1033.0 | 1277.4 |
EPS | 16.1 | 22.4 | 27.7 |
Growth (%) | 85.6 | 50 | 22 |
Gross Profit | 100.7 | 54.0 | 20.7 |
EBITDA Growth | 115.7 | 66.5 | 17.1 |
EBIT Growth | 167.9 | 63.7 | 14.1 |
PAT Growth | 78.4 | 77.1 | 23.7 |
Margins (%) | 54.6 | 56.1 | 55.5 |
EBITDA Margin | 22.5 | 25 | 24 |
EBIT Margin | 23.1 | 25.2 | 23.6 |
PAT Margin | 14.6 | 17.3 | 17.5 |
Ratios | |||
PE | 44.7 | 32.1 | 26 |
PB | 4.1 | 3.6 | 3.2 |
EV/EBITDA | 36.2 | 22.3 | 18.8 |
EV/SALES | 8.1 | 5.6 | 4.5 |
ROE | 7.2 | 11.3 | 12.2 |
ROCE | 9.3 | 14.9 | 15.9 |
Conclusion
Bajaj Broking Research Desk’s Diwali Picks 2025 combine stability and opportunities across sectors such as energy, manufacturing, defence, pharmaceuticals, and technology services. Each company has been selected based on strong fundamentals, clear earnings visibility, and favourable technical setups.
As India enters a new Samvat year, these research-backed ideas aim to help investors align their portfolios with long-term growth potential and market resilience.
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Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
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