Diwali 2025: Anil Singhvi’s 'dhanlakshmi' stock pick–Target points to 81% return

Diwali Stock 2025: As the festival season brings fresh investment opportunities, market veteran Anil Singhvi has zeroed in on IIFL Finance Ltd as one of his top Diwali 2025 stock picks. The well-known market voice believes the financial services firm holds the potential to deliver up to 81 per cent returns over the next one to three years, with target levels placed at Rs 625, Rs 750, and Rs 900 against the current market price of Rs 497.

Why Singhvi is Betting on IIFL Finance

According to Singhvi, the company stands out for its strong gold loan portfolio, improving business mix, and visible recovery in earnings. The broader lending book, spread across gold, housing, and SME segments, has also helped the lender maintain balance-sheet stability.

Add Zee Business as a Preferred Source

He pointed out that the gold loan segment continues to anchor growth and is expected to benefit further from higher gold prices in the coming quarters. Rising demand for secured retail loans, combined with controlled credit costs, is also expected to aid momentum.

How to trade the stock: Buy on Dips

Singhvi recommends that investors adopt a gradual accumulation strategy rather than lump-sum buying. His advice is to add more shares of IIFL Finance every time the stock corrects by about 15 per cent, turning market volatility into an opportunity. The approach, he says, helps investors lower average costs and stay aligned with the company’s long-term growth story.

Management Shift Adds Confidence

Adding to the positive outlook, the appointment of Girish Kousgi as MD & CEO of IIFL Home Finance has been received well by the market. The leadership change is viewed as a strategic step to accelerate the next phase of growth, particularly in the affordable housing segment.

Brokerages tracking the stock expect IIFL Finance’s profit after tax (PAT) to climb to nearly Rs 2,700 crore by FY26, supported by healthy demand, expanding margins, and steady asset quality.

Valuation and Long-Term Outlook

At roughly 10 times FY25 earnings, IIFL Finance trades at an attractive valuation compared with its peers. Analysts say the stock is still reasonably priced, given its improving fundamentals and diversified revenue base.