4 Midcap Diwali Stocks to Watch for Future Multibagger Potential: Lupin, Federal Bank, Radico Khaitan and Kalyan Jewellers
- October 23, 2026
- Posted by: Manan Bisht
- Category: Best Stocks
Lupin Rs 1,922. Federal Bank Rs 347.80. Radico Khaitan Rs 4,356.10. Kalyan Jewellers Rs 557. Market caps from Rs 58,211 crore to Rs 89,592 crore. Data as of 22 Oct 2026.
Quick Answer
Lupin, Federal Bank, Radico Khaitan and Kalyan Jewellers are the 4 picks in this Diwali stocks watchlist, with market caps between Rs 58,211 crore and Rs 89,592 crore. Lupin stands out for the highest return on equity at 23.76%, while Federal Bank offers the lowest PE of the group at 15.47. PE ratios run from 15.47 to 87.03, so compare each one with its industry PE before investing. All figures are as of 22 October 2026.
Diwali stocks to watch for multibagger potential start with a simple filter: size, a clean financial record and earnings that keep growing. Lupin, Federal Bank, Radico Khaitan and Kalyan Jewellers meet that test, with market caps from Rs 58,211 crore to Rs 89,592 crore and Lupin offering the highest return on equity at 23.76%. Each of these companies has a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a positive one-year return, a return on equity above 12 per cent and a dividend, and net profit rose in FY26 and in the latest quarter.
This list covers companies with a market capitalisation between Rs 30,000 crore and Rs 1,00,000 crore and a positive one-year return, a return on equity above 12 per cent and a dividend, rising profit in FY26 and the latest quarter, and complete, verifiable financials, ranked by market capitalisation. Each company has a market cap between Rs 30,000 crore and Rs 1 lakh crore. Investors screening Diwali stocks usually begin with size and balance sheet strength, and this list follows the same logic. All figures are as of 22 October 2026 and are drawn from NSE and BSE data and company filings.
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What Are Diwali Stocks and Why Do They Attract Multibagger Interest?
Diwali stocks are shares of mid sized companies that investors often add to their watchlists around the festive season. The four here cover pharmaceuticals, private banking, spirits and jewellery.
Consumption themes tend to get attention at Diwali, but earnings still decide the outcome. For Diwali stocks, both FY26 and the latest quarter showed growth. Investors researching Diwali stocks get a fuller picture by reading growth and valuation together. The table below lines up Diwali stocks on size, growth and valuation, using complete FY26 and latest quarter numbers. Past performance does not guarantee future returns, so use Diwali stocks as a starting point for your own research.
Diwali Stocks at a Glance: Price, Market Cap, PE, ROE and Price to Book
Prices are closing prices as of 22 October 2026. Federal Bank has the lowest PE of the group at 15.47, while Lupin posts the highest return on equity at 23.76%.
| Stock | CMP (Rs) | Market Cap (Rs Cr) | PE | Industry PE | ROE | Price to Book | 52-Week Range (Rs) |
|---|---|---|---|---|---|---|---|
| Lupin | 1,922 | 89,592 | 16.14 | 36.42 | 23.76% | 3.99 | 1,900.00 to 2,529.50 |
| Federal Bank | 347.80 | 83,333 | 15.47 | 11.94 | 12.60% | 2.02 | 211.52 to 371.70 |
| Radico Khaitan | 4,356.10 | 61,233 | 87.03 | 54.95 | 18.23% | 18.47 | 2,500.00 to 4,747.00 |
| Kalyan Jewellers India | 557 | 58,211 | 40.58 | 46.75 | 21.41% | 9.23 | 327.05 to 648.95 |
Lupin: Revenue Up 26.76% in FY26
Lupin is a global pharmaceutical company with a large presence in the United States, India and other markets across generics, branded drugs and respiratory products. It reported FY26 revenue of Rs 29,038.95 crore, up 26.76% year on year, and net profit of Rs 5,355.47 crore, up 61.98%. Revenue has compounded at 14.98% a year since FY22. Operating margin was 31.06% in FY26. The debt-to-equity ratio is 0.29.
In the June 2026 quarter, revenue rose 32.45% to Rs 8,407.21 crore and net profit grew 16.01% to Rs 1,416.98 crore. The share price has gained 111.00% over five years. Foreign investors raised their holding from 21.25% in June 2025 to 22.42% in June 2026. The stock trades at a PE of 16.14 against an industry PE of 36.42, below the sector average, with a return on equity of 23.76%.
Federal Bank: 22.90% Profit CAGR Since FY22
Federal Bank is a Kerala-based private sector bank with a strong NRI deposit base and a growing retail, small business and digital franchise. It reported FY26 total income of Rs 34,272.42 crore, up 7.00% year on year, and net profit of Rs 4,483.38 crore, up 6.71%. Net profit has compounded at 22.90% a year since FY22, while total income has grown 20.05% a year.
The stock trades at a PE of 15.47 against an industry PE of 11.94, with a return on equity of 12.60%. In the September 2026 quarter, total income rose 19.01% to Rs 9,903.41 crore and net profit grew 53.42% to Rs 1,564.06 crore. The share price has gained 259.57% over five years and 57.58% over the past year. Domestic institutions raised their holding from 48.17% in June 2025 to 49.28% in June 2026.
Radico Khaitan: 24.88% Profit CAGR Since FY22
Radico Khaitan makes Indian-made foreign liquor and premium spirits, with brands including Magic Moments, 8PM and Rampur Single Malt. It reported FY26 revenue of Rs 6,062.27 crore, up 24.84% year on year, and net profit of Rs 604.48 crore, up 74.90%. Net profit has compounded at 24.88% a year since FY22, while revenue has grown 20.50% a year. Operating margin was 4.88% in FY26. The debt-to-equity ratio is 0.15, which keeps interest costs low.
In the June 2026 quarter, revenue rose 10.44% to Rs 5,869.46 crore and net profit grew 75.91% to Rs 229.60 crore. The share price has gained 299.58% over five years and 51.47% over the past year. Domestic institutions raised their holding from 25.47% in September 2025 to 27.17% in September 2026. The stock trades at a PE of 87.03 against an industry PE of 54.95, with a return on equity of 18.23%.
Kalyan Jewellers: 56.69% Profit CAGR Since FY22
Kalyan Jewellers is one of the largest jewellery retailers in India, with showrooms across India and the Middle East. It reported FY26 revenue of Rs 35,950.88 crore, up 42.72% year on year, and net profit of Rs 1,350.39 crore, up 89.09%. Net profit has compounded at 56.69% a year since FY22, while revenue has grown 34.90% a year. Operating margin was 7.62% in FY26.
The stock trades at a PE of 40.58 against an industry PE of 46.75, below the sector average, with a return on equity of 21.41%. In the June 2026 quarter, revenue rose 45.52% to Rs 10,644.67 crore and net profit grew 32.03% to Rs 348.67 crore. The share price has gained 618.28% over five years and 14.90% over the past year. Promoters hold 62.85%, which keeps ownership stable.
Diwali Stocks: Financial Comparison on Growth and Margins
The table compares scale and growth across these Diwali stocks. Latest quarter means the most recent reported quarter for each company, and only metrics that are positive for every company are shown.
| Stock | Revenue (Rs Cr) | Net Profit (Rs Cr) | Revenue Growth (YoY) | 4-Year Revenue CAGR | Latest Quarter Revenue Growth |
|---|---|---|---|---|---|
| Lupin | 29,038.95 | 5,355.47 | 26.76% | 14.98% | 32.45% |
| Federal Bank | 34,272.42 | 4,483.38 | 7.00% | 20.05% | 19.01% |
| Radico Khaitan | 6,062.27 | 604.48 | 24.84% | 20.50% | 10.44% |
| Kalyan Jewellers | 35,950.88 | 1,350.39 | 42.72% | 34.90% | 45.52% |
Check the Univest Screener for live data on these Diwali stocks
Institutional Holding in Lupin, Federal Bank, Radico Khaitan and Kalyan Jewellers
Institutional holding shows who is backing these Diwali stocks alongside the promoter. The table uses the latest reported quarter for each. Federal Bank has the deepest institutional backing, with FII and DII together holding 76.99% as of June 2026. Domestic institutions increased their holding over the past year in Federal Bank (from 48.17% to 49.28%) and Radico Khaitan (from 25.47% to 27.17%).
| Stock | Promoter | FII | DII | Public | Quarter |
|---|---|---|---|---|---|
| Lupin | 46.85% | 22.42% | 24.65% | 6.08% | June 2026 |
| Federal Bank | Nil | 27.71% | 49.28% | 23.01% | June 2026 |
| Radico Khaitan | 40.17% | 19.43% | 27.17% | 13.23% | September 2026 |
| Kalyan Jewellers | 62.85% | 13.83% | 14.41% | 8.91% | September 2026 |
Risks to Weigh in Diwali Stocks
Being careful with Diwali stocks means looking at what can slow the story as well as what can speed it up. Four points matter most:
- Past growth may not repeat.
- Share prices can move sharply in either direction.
- Valuation: Radico Khaitan trades at a PE of 87.03 against an industry PE of 54.95, so earnings need to keep growing to support the price.
- Concentration: Holding all 4 names puts the allocation in one sector, so size each position to match your risk appetite.
How to Choose Between Diwali Stocks
Picking from Diwali stocks comes down to four checks, applied in order.
- Check balance sheet strength first, and prefer a debt-to-equity ratio below 1 for non-financial companies.
- Compare each PE with the industry PE (11.94 to 54.95) and ask whether the growth rate justifies any gap.
- Track net profit growth, the operating margin and the return on equity in every quarterly result.
- Stagger entries across quarters and review institutional holding every reporting season.
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Conclusion
Among Diwali stocks, Lupin stands out for the highest return on equity at 23.76%, Federal Bank for the lowest PE of the group at 15.47, Radico Khaitan for the strongest latest-quarter profit growth at 75.91% and Kalyan Jewellers for the fastest profit growth, 56.69% a year since FY22. Which one suits a portfolio depends on how much valuation risk it can carry, so staggering entries and reviewing each quarterly result is a sound habit. Investors comparing Diwali stocks should rank them on growth, financial strength and the price paid, and anyone who wants personalised guidance can consult a SEBI-registered advisor before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions on Diwali Stocks to Watch
Which are the best Diwali stocks to watch for multibagger potential?
Ans. Lupin, Federal Bank, Radico Khaitan and Kalyan Jewellers are the 4 names this list highlights, with market caps of Rs 89,592 crore, Rs 83,333 crore, Rs 61,233 crore and Rs 58,211 crore respectively. Lupin is notable for the highest return on equity at 23.76%. Federal Bank stands out for the lowest PE of the group at 15.47. Radico Khaitan offers the strongest latest-quarter profit growth at 75.91%. Kalyan Jewellers brings the fastest profit growth, 56.69% a year since FY22. These are watchlist names for Diwali stocks, not recommendations, so match each one to your own risk profile and time horizon.
Is Lupin a good stock for long-term investors?
Ans. Lupin has a return on equity of 23.76%, a PE of 16.14 against an industry PE of 36.42 and a market cap of Rs 89,592 crore. FY26 revenue rose 26.76%, and June 2026 quarter net profit grew 16.01%. Long-term returns in Diwali stocks depend on earnings growth and the price paid at entry, so staggering purchases and consulting a SEBI-registered advisor is sensible.
Can Kalyan Jewellers become a multibagger from here?
Ans. Kalyan Jewellers has already gained 618.28% in five years, so another multi-fold move would need sustained earnings growth. A multibagger outcome in Diwali stocks requires earnings to keep growing faster than the market for several years. Net profit has compounded at 56.69% a year since FY22, and FY26 revenue rose 42.72%. At a PE of 40.58 against an industry PE of 46.75, valuation should be checked against that growth before investing.
What is the market cap of Lupin, Federal Bank, Radico Khaitan and Kalyan Jewellers?
Ans. As of 22 October 2026, Lupin has a market cap of Rs 89,592 crore, Federal Bank has a market cap of Rs 83,333 crore, Radico Khaitan has a market cap of Rs 61,233 crore and Kalyan Jewellers has a market cap of Rs 58,211 crore. All of them qualify as midcaps. Market cap changes daily with the share price, so check the latest figure on the Univest Screener or on NSE before taking a decision on Diwali stocks.
What are the risks of investing in Diwali stocks?
Ans. The main risks are market swings, slower growth than expected and valuations that already reflect good news. Companies with strong balance sheets and steady earnings handle these better. Radico Khaitan trades at a PE of 87.03 against an industry PE of 54.95, so earnings growth needs to hold up.
Why is Radico Khaitan trading at a PE of 87.03?
Ans. Radico Khaitan’s PE of 87.03 compares with an industry PE of 54.95. The market is paying a premium for a return on equity of 18.23%, profit growth of 24.88% a year since FY22 and latest-quarter profit growth of 75.91%, which also means the stock is more sensitive if growth slows. Investors in Diwali stocks who are comfortable with higher valuation risk may prefer to stagger purchases instead of investing in one go.
How much do institutions hold in Lupin, Federal Bank, Radico Khaitan and Kalyan Jewellers?
Ans. As of the latest reported quarter, FII and DII together hold 47.07% of Lupin (22.42% and 24.65%), 76.99% of Federal Bank (27.71% and 49.28%), 46.60% of Radico Khaitan (19.43% and 27.17%) and 28.24% of Kalyan Jewellers (13.83% and 14.41%). Rising institutional holding is a useful signal in Diwali stocks, though it should be read with earnings trends rather than on its own.
