Diwali Special 🔥 Top 10 Solid Stocks 👌 High Conviction Smallcap

Summary

The presenter discusses 10 Indian small- and mid-cap stocks across multiple sectors as possible Diwali purchases. The list is not ranked: viewers are encouraged to research the companies and choose among them. The presenter says they personally intend to buy at least one stock for Diwali.

The subtitles contain substantial transcription errors, so some figures and descriptions below should be treated as approximate.

Stocks discussed

1. ITC Hotels (ITCHOTELS) — Hotels

   • The presenter sees a diversified hotel business serving luxury, premium and mid-market customers. Revenue comes from owned hotels, franchises, management fees, rooms, food and beverage, weddings and conferences.
   • Expansion plans cited include 156 hotels currently, with a target of 250. Room capacity of about 8,200 keys could rise to 22,000+ over the next four to five years. The date attached to the 250-hotel target is garbled in the subtitles.
   • The portfolio is described as shifting toward an asset-light model: 41% owned / 59% franchised by September 2026, moving to 33% owned / 67% franchised by 2031. The presenter argues that this could reduce capital requirements and support margins.
   • New hotels are expected to open in Kerala in December 2026, Odisha/Bhubaneswar in 2027, Visakhapatnam in 2029, and New Delhi in 2030.
   • Reported operating figures include occupancy up 481 basis points to 76%, ADR up 14%, RevPAR up 21%, management fees up 25%, and EBITDA margin rising from 29% to 32%. Some revenue-growth figures in the subtitles are unclear.

2. Sambhv Steel Tubes (likely SAMBHV) — Steel tubes

   • The presenter highlights expansion in ERW and structural pipes, galvanized products and stainless steel, with capacity expansion as a future growth driver.
   • Management’s revenue target is quoted as about ₹4,500 crore by FY28. The subtitles also cite 24% ROCE, no debt and an EBITDA multiple of around 15x, though the valuation wording is unclear.
   • The share is said to have fallen from around ₹120 after its IPO to ₹80–90, and to be recovering. Recent revenue is described as rising from approximately ₹30 crore to ₹61 crore.

3. Gokaldas Exports (GOKEX) — Apparel exports

   • The presenter sees potential from textile-export opportunities and customer shifts toward India, while noting risks from the expiry of the US AGOA trade arrangement in September 2025 and its effect on the company’s African operations.
   • FY26 revenue reportedly declined 19% amid order disruption. The company is described as recovering, with Q2 growth of 32% and H1 growth of 39% cited.
   • Management’s Africa revenue targets are quoted as US$80 million in FY26 and US$120 million in FY27, implying roughly 44–50% growth. The presenter expects FY27 to be a turnaround year and says margins may improve, but the margin figures are garbled.

4. Transformers and Rectifiers India (TRIL) — Electrical equipment

   • The presenter points to demand for high-voltage and HVDC transformers, especially above 400 kV.
   • September-quarter revenue reportedly rose 61%, with PAT growth of more than 100%.
   • Backward-integration projects include a CTC facility expected to be commissioned in Q2 FY27; other facilities are said to have already been commissioned. The presenter expects better margins and stronger performance in FY28.
   • Valuation figures around 30x P/E and 19x EV/EBITDA are mentioned, but the transcript is not fully clear.

5. Syrma SGS Technology (SYRMA) — Electronics manufacturing

   • The presenter calls it a solid company while acknowledging that valuations have risen and recent results had previously disappointed.
   • September-quarter revenue reportedly increased 74%, with PAT growth close to 100%.
   • The subtitles include conflicting valuation numbers, so no precise multiple is relied on.

6. Apollo Micro Systems (APOLLO) — Defence electronics

   • The company is described as vertically integrated, spanning electronic design and R&D through weapons and systems integration.
   • Management is said to expect growth of over 50% in the coming years. Recent revenue growth is quoted at 72%, with strong PAT growth.
   • The stock is described as consolidating near ₹400. A valuation multiple around 54x may be intended, but the subtitles are garbled.

7. Shilpa Medicare (SHILPAMED) — Pharmaceuticals

   • Growth areas identified include peptides, specialty APIs and CDMO, complex generics, biosimilars/biologics, recombinant human albumin and antibody-drug conjugates.
   • Revenue growth is quoted at 43%, with PAT growth of about 90%. Segment growth figures include 24%, 50% and 150% for different businesses, though the mapping is unclear.
   • The company reportedly has four biologics manufacturing lines, with two more being added. A new integrated facility is expected to begin commercial operations in FY27.
   • The presenter cites 25+ non-captive CDMO client programs, six late-stage API CDMO programs and four programs under registration. Three complex products have been commissioned, with five more in advanced development for possible commercialization over the next two to three years.
   • Biosimilars contribute about 12% of revenue. The company is said to have a seven-product biosimilar portfolio and an agreement with Orion to develop and supply a biosimilar. The presenter notes the high technical barriers and long development cycles in biosimilars.
   • P/E is quoted at about 57.6x.

8. Navin Fluorine International (NAVINFLUOR) — Specialty chemicals

   • The presenter describes a transition toward advanced materials and higher-value CDMO work, in addition to specialty fluorochemicals.
   • Q2 revenue growth is quoted at 57% and PAT growth at 81%. Segment growth figures cited are 49%, 58% and 78%.
   • Growth opportunities include refrigerant gases, data-centre cooling, specialty chemicals and CDMO. A data-centre cooling project is expected to be commissioned in Q3 FY27, with deliveries potentially beginning in Q4 FY27. Management may scale capacity up to 10 times, depending on adoption.
   • The subtitles cite a possible quarterly revenue run rate of approximately ₹350 crore. A pharmaceutical-materials opportunity developed with DRDO is estimated at ₹400 crore, with the company aiming to capture at least half. Defence applications may take longer because of approvals.
   • Valuation is quoted at about 50x P/E and 32x EV/EBITDA.

9. Centum Electronics (CENTUM) — Defence, space and electronics

   • Q2 revenue reportedly rose 52%, EBIT 63% and PAT 77%.
   • The order book is quoted as ₹959 crore for BTS (built to specification) and ₹1,041 crore for EMS (electronics manufacturing services). BTS work includes customer-specific radar, satellite-payload, navigation and defence electronics.
   • A semiconductor-equipment revenue target was raised from US$25–30 million to US$45–50 million annually. Management reportedly cited rising demand, new product lines and additional contracts.
   • Defence orders cited include ₹30 crore for electronic-warfare subsystems and ₹51 crore for tactical air-navigation systems. The company is also said to have received satellite-payload orders, with no value disclosed.
   • More than 200 subsystems and modules were reportedly tested for space applications. Management’s growth outlook is 25–30%. The valuation figures in the subtitles are unclear.

10. Jyoti CNC Automation (JYOTICNC) — CNC machinery - The presenter sees potential from rising Indian demand for CNC machines, while warning that the segment is cyclical and equipment makers can rise and fall with demand. - The subtitles state that imported CNC machines accounted for 59% in FY25 and 61–62% in FY26, although the precise measure is unclear. - The company is highlighted for an order book exceeding ₹5,000 crore, with 36% from aerospace and defence, described as a higher-margin business.

Other stocks mentioned

As additional ideas—not part of the 10-stock list—the presenter mentions Parag Milk Foods (PARAGMILK), PG Electroplast (PGEL), Goldiam International (GOLDIAM) and Tata Elxsi (TATAELXSI).

PG Electroplast is discussed in connection with local AC-compressor manufacturing and possible commercial production around March 2027; the presenter says a turnaround is not yet certain. The Indian Hotels Company and The Leela Palaces, Hotels and Resorts are also referenced as strong hotel-sector performers.

Framework, cautions and disclosures

• The presenter’s approach is to compare companies across sectors using growth prospects, order books, capacity expansion, margins, valuation and business triggers.
• The stocks are explicitly not ranked; viewers are told to study them and select whichever they consider most suitable.
• Risks mentioned include cyclical demand in CNC machinery, uncertain adoption for data-centre cooling, approval delays for defence materials, and execution and market-access risks in Gokaldas Exports’ African business.
• The presenter refers to a Diwali special trading session, stating that the market would be open for one hour, 2:20–3:30. The date and calendar details in the subtitles may be inaccurate.
• No explicit “not financial advice” disclaimer appears in the subtitles.

Presenter/source: An unnamed presenter on Good Earnings (తెలుగు). The video also refers to the channel’s Alpha-member content, company management guidance, results and conference-call commentary.