After analysing various brokerage recommendations, five names stand out as common favourites; Here’s the list
Top 5 Picks For Muhurat Trading 2024
This Diwali, brokerages including HDFC Securities, JM Financial, Sharekhan, AngelOne, ICICIdirect and more have unveiled their top stock recommendations, highlighting opportunities for festive-season gains. Among the stocks favoured are sector giants like Reliance Industries (RIL) and State Bank of India (SBI), along with other high-growth names, reflecting sectoral resilience and strategic growth potential. After analysing various brokerage recommendations, five names stand out as common favourites, each backed by strong fundamentals and sectoral advantages. Below, we delve into why these stocks are considered solid bets for investors in the year ahead and what’s fuelling analyst optimism across multiple sectors.
Backed by HDFC Securities, JM Financial, Sharekhan, and 5paisa, Reliance Industries is positioned as a top Diwali pick, driven by its expanding telecom, retail, and new energy divisions. Brokerages have set target prices ranging from Rs 3,243 (HDFC Securities) to Rs 3,500 (JM Financial), banking on potential 15% profit CAGR through FY27. Risks include high capex and pressures from natural gas pricing.
With support from Religare, Kedia Advisory, HDFC Securities, and 5paisa, State Bank of India (SBI) stock is recommended for its robust technical indicators and stable growth in India’s banking sector. Brokerages suggest a target range of Rs 915-Rs 1,240, noting potential 20-55% upsides as the stock stabilises near its 200-day EMA and earnings growth remains on track.
Mphasis is marked by Phillip Capital, 5paisa, and Anand Rathi as a promising Diwali pick in the IT sector. Citing bullish technical patterns and sectoral momentum, these brokerages see Mphasis reaching target prices from Rs 3,560 (5paisa) to Rs 4,400 (Phillip Capital). The company’s solid position in digital transformation is expected to fuel long-term growth.
Endorsed by Angel One, HDFC Securities, and Religare, Jyothy Labs is gaining traction for its national, multi-product transformation and projected revenue CAGR of over 12% through FY26. Brokerages have set targets from ₹600 (HDFC Securities) to Rs 680 (Angel One), highlighting improved margins and a balanced product mix as key drivers.
NCC Ltd Recommended by ICICIdirect, Angel One, and HDFC Securities, NCC Ltd is a top pick in the construction space. With target prices ranging from Rs 363 (HDFC Securities) to Rs 400 (Angel One), NCC’s broad order book and expected 16% revenue CAGR through FY27 make it a standout choice for Diwali, particularly given its diversified infrastructure portfolio.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Newsbusiness » markets Diwali Top Picks: 5 Stock Ideas To Light Up Your Portfolio In Samvat 2081
The BSE MidCap and SmallCap indices outperformed, with 44% and 43% gains, respectively during the year
Domestic equity markets made history in Samvat 2080
Choice Equity Broking has released its annual Muhurat Picks 2024 report, offering investors a comprehensive guide to making informed investment decisions this Diwali.
Domestic equity markets made history in Samvat 2080. The Nifty 50 index crossed the 26,250 mark, while the BSE Sensex surged past 85,900 for the first time in September, both registering gains of approximately 25% during the year.
The BSE MidCap and SmallCap indices outperformed, with 44% and 43% gains, respectively. This rally occurred despite geopolitical tensions, global economic challenges and elevated interest rates. Looking ahead to Samvat 2081, Choice Equity Broking has recommended 10 stocks for Diwali investments.
Bajaj Auto (Target price: Rs 12,483)
Choice Broking is positive on Bajaj Auto’s growth trajectory in the medium to long term, supported by several key factors such as growing focus on exports to drive sales, increasing demand for the 125cc 2W “Freedom”, strong demand for the 2W EV “Chetak” and an aggressive marketing push for CNG-based 2-wheelers and electric variants. With the rising contribution of premium products like Triumph, solid growth in the EV portfolio (2W+3W), and improving profitability from “Chetak,” the brokerage recommend ‘Buy’ rating on the stock.
Bharat Dynamics (Target price: Rs 1,501)
Choice Broking has a positive outlook on Bharat Dynamics (BDL), as it is catering for the strategic needs of the MoD Indian defence forces, supported by a sole supplier of offensive, as well as defensive systems domestically. Upcoming big-ticket projects are in the pipeline it is expected to materialise from FY25 onwards. In addition to this, increasing export opportunities, talks are underway with 4-5 friendly countries, diversified product portfolio across armed forces, the company’s humongous order book, which stood at Rs 19,500 crore as on April 1, 2024, stands at 8.2x of FY24 revenue will support the growth story of the company.
ACC (Target price: Rs 2,795)
India’s cement demand is expected to maintain a growth rate of 7-8%, largely propelled by investments in infrastructure and extensive residential housing projects. The company is targeting to double its capacity to 140 million tonne (mnt) by FY28E, a significant increase from its current capacity of 89 mnt. The company’s strategy revolves around cost optimisation, with a concerted effort to reduce costs to fuel its growth trajectory. As per FY26E estimates, Choice Broking expects revenue and EBITDA to grow at a CAGR of 5.7% and 13.1%, respectively, over FY24-FY26E.
Somany Ceramics (Target price: Rs 965)
Choice Broking expects Somany Ceramics to registered a healthy revenue, EBIDTA and PAT growth of 11%, 13% and 23%, respectively, CAGR over FY24-27E and RoCE expansion from around 14.2% in FY24 to 17.4% in FY27E.
TCS (Target price: Rs 4,664)
The company is investing significantly to create a large footprint in emerging growth markets. A near all-time high TCV and client interest in GenAI shall provide growth. Choice Broking has introduced FY27E and expect revenue, EBIT and PAT to grow at a CAGR of 10.3%, 12.3% and 12.2%, respectively over FY24-FY27E.
HCL Technologies (Target price: Rs 2,105)
The company remains committed to achieving business growth in a sustainable and responsible manner. Their deal pipeline is robust, featuring opportunities in Data & AI, Digital Engineering, SAP migration and efficiency-driven programs. The brokerage expects revenue, EBIT and PAT to grow at a CAGR of 10.5%, 13.5% and 13.7%, respectively, over FY24-FY27E.
EFC (I) Ltd (Target price: Rs 855)
EFC Ltd is a real estate management company headquartered in Pune. Its principal business is to provide managed office spaces for startups, small and medium-sized businesses and large corporations. EFC operates through 3 major verticals: office rentals, interior and furniture and fixture trade. It has recently forayed into furniture manufacturing, in which will complement its existing managed office business and also supply to third parties.
EFC’s plan to scale up all 3 business verticals – managed office space, design and build and furniture manufacturing will establish itself as an integrated player with diverse revenue streams and also able to capitalise on the cross synergies from these 3 verticals. The furniture manufacturing division starts contributing meaningfully from Q2FY25 as the large capacities go live and will be scaled up in FY26. With the market already for EFC as 60-70% capacity utilisation will be met from internal furniture requirement only and then will start pursuing the B2B model.
Granules India (Target price: Rs 723)
Granules is expected to benefit from its strategic shift towards the FD segment, stabilising Paracetamol API sales in Europe, backward integration efforts, the operationalisation of its new FD facility and new product launches, particularly in North America. Choice Broking projects the company’s revenue, EBITDA and PAT to grow at a CAGR of 15%, 22% and 27%, respectively, from FY24-27E.
Global Health (Target price: Rs 1,246)
Global Health is one of the biggest private multispecialty tertiary care providers in the North and East regions of India in terms of bed capacity and operating revenues with key specialties in cardiology and cardiac science, neurosciences, oncology, digestive and hepatobiliary sciences, orthopaedics, liver transplant, kidney, and urology. The organisation operates a network of numerous hospitals under the “Medanta” brand, including ones in Gurgaon, Indore, Ranchi, Lucknow and Patna, as well as one hospital that is currently being built in Noida.
Choice Broking forecasts that Medanta’s revenue and EBITDA will grow at a CAGR of 21.6% and 23.0%, respectively, for FY24-26E. The company is in a capex phase, planning to invest Rs 1,000-1,200 crore over the next two years, which may impact margins when the Noida facility begins operations.
Ugro Capital (Target price: Rs 345)
UGRO Capital is well-positioned to capture the growing demand for MSME credit, with its scalable and tech-driven business model driving sustainable growth. The company’s diversified revenue streams, combined with its strong focus on capital efficiency through co-lending partnerships, provide a solid foundation for long-term profitability. Choice Broking projects UGRO to achieve an earnings per share (EPS) CAGR of 42% from FY24-26E.
Newsbusiness » markets Diwali Stock Picks: Choice Broking’s Top 10 Stock Picks For Muhurat Trading 2024
This year’s special one-hour Diwali Muhurat trading session will take place on Friday, November 1; Here are a few stock picks for Samvat 2081
Muhurat Trading 2024
Diwali Muhurat Trading Stock Picks For 2024: Samvat 2080 has been a year of constant fresh highs for the key benchmarks BSE Sensex and NSE’s Nifty50, as both created many fresh lifetime highs during the year, buoyed by a resilient and one of the fastest growing emerging economies, steady earnings, a rate cut by the US Federal Reserve and a strong splurge of domestic flows.
The BSE Sensex created a fresh high of 85978.25 on 27th September, 2024, while the NSE’s Nifty50 also climbed a new peak on the same day, reaching 26,277.35 level. Both gained around 25 per cent during Samvat 2080.
The benchmark BSE Sensex has surged 25% since November 12, 2023, while the BSE Midcap and BSE Smallcap indices have jumped 49% and 47%, respectively, during the same period. Market experts attribute this strong performance to solid domestic inflows that have buoyed market sentiments.
For Diwali 2024, JM Financial has released its top 10 stock picks for Samvat 2081, offering investors a guide to capitalising on the festive season and market momentum. This year’s special one-hour Diwali Muhurat trading session will take place on Friday, November 1, from 6:15 PM to 7:15 PM. Let’s explore the stocks that could brighten your portfolio this Diwali.
Reliance Industries (Target price: Rs 3,500)
RIL’s stock price has underperformed broader markets with just 5% returns in CY24YTD versus 15% return for Nifty 50. JM Financial believes that this underperformance could reverse supported by faster-than-anticipated telecom tariff hikes by telcos, recovery in retail business and positive announcements on new energy business. Earnings growth momentum to remain strong across segments and the brokerage expects 15% PAT CAGR over FY24-27E.
Power Grid Corporation of India (Target price: Rs 383)
JM Financial believes that valuation of Power Grid is reasonable at 3.1x FY26E P/BV stock offers healthy dividend yield of around 4%, low earnings risk given regulated returns, and most importantly, it sees sharp recovery in transmission capex cycle. JM Financial expects the company to maintain a ROE of 18% during FY24-26E.
Bajaj Finance (Target price: Rs 8,552)
Bajaj Finance stock has over last 2 months witnessed a decent recovery of 20%. One of the important triggers behind this was IPO of its housing finance division recently. However, despite such a run up, there is still steam left in the stock. AUM growth of Bajaj Finance over the last 2-3 years has remained healthy at over 25% YoY levels. In Q1FY25, slight moderation was witnessed owing to the company shifting focus from unsecured loans to secured loans after RBI instructions for the entire sector with respect to unsecured loans. With festive season ahead, Q3FY25 is seasonally a good quarter in terms of AUM. On an annual basis too, JM Financial believes the company would maintain its healthy growth strategy ahead, owing to its diversified asset book.
ICICI Lombard General Insurance (Target price: Rs 2,450)
The company has a strong presence in health & motor segment owing to a strong product suite, growing retail agency and digital capabilities, deep distribution and conservative underwriting and a large balance sheet, reinsurance and agility. These capabilities have made the company a leader in this large and fast growing segment. A smooth management transition after a CEO at the helm for 14 years indicates depth in leadership, visible also in consistent growth and 15% plus returns, even as it toggles segments in response to customer demand and competition.
Jindal Steel & Power (Target price: Rs 1,150)
Jindal Steel and Power (JSPL) is one of India’s leading steel manufacturers with current capacity of 9.6mtpta. The company is undergoing capex to expand its crude steel production capacity by 65% to 15.9mtpa. JSPL’s strategic expansion would augment its crude steel capacity by 65% to 15.9m tonnes and enrich its product mix. Also, the company is strengthening raw-material integration and increasing the share of VAPs which should aid margins. Considering its strong focus on margin expansion, JM Financial expects it to achieve Rs 15,000 EBITDA/tonne by FY26. With a 0.9x net debt/EBITDA, it has one of the strongest balance sheets among domestic peers.
National Aluminium Company (Target price: Rs 264)
NALCO’s Q2FY25 EBITDA is expected to increase by around 3 times YoY to Rs 1,200 crore supported by rise in alumina/aluminium price, lower cost and benefit of captive coal mining. FY27E EBITDA estimate of Rs 6,000 crore and 7.5 times EV/EBITDA + FY26E Net cash of Rs 3,500 crore gives us equity value of Rs 48,500 crore (Rs 264/share). At CMP of Rs 227, the stock trades at attractive valuation of 6.8 times on FY26E EBITDA and offers healthy dividend yield of 3%.
Gravita India (Target price: Rs 3,068)
Gravita India is a leading player in India’s recycling industry and currently operates in three verticals i.e. lead, aluminum, plastics and has concrete plans to diversify into other verticals (steel, paper and lithium-ion batteries). The company is one of the largest lead recyclers in India and derives 82% of its EBITDA from lead recycling vertical while aluminum, plastic and turnkey projects contributed 5%, 4% and 9% of its FY24 EBITDA (Rs 343 crore).
Macrotech Developers (Target price: Rs 1,480)
Lodha is expected to generate robust operating cash flows (OCF), as collections catch up to the growth in pre-sales (in the last 3 years). The company will generate OCF of Rs 7,000-8,000 crore on average for the next 3 years. JM Financial estimates that Lodha should have surplus cash available for deleveraging even after accounting for a consummate increase in business development investments (growth investments).
Olectra Greentech (Target price: Rs 2,200)
Olectra is one of the largest manufacturers of electric buses in India. It has establishing greenfield state-of-the-art plant in Hyderabad with capacity of 5,000 units per year and scalable to 10,000 units per year. Company has commenced partially operations for manufacturing electric buses and other EV products in the new plant. Over the next 2 financial years, ramp up will be visible. Olectra delivered 156 units of e-buses in Q1FY25, management guides for volumes to double in Q2FY25, and further over 1,000 buses in H2FY25 equating to 1,800-2,000 buses volumes for FY25 which is an annual growth of nearly 300%. For FY26E management is targeting growth of 2 times over FY25E levels, hence volumes for Olectra should grow 8 times from FY24 levels in 2 years’ time.
Ashoka Buildcon (Target price: Rs 290)
The company is expected to clock a PAT CAGR of 33% over FY2024-2026E with a robust ROE of 10% in FY26E. The stock trades at 15.3x FY26E standalone EPS. JM Financial values company’s EPC business at 12x September-FY26E core EPS, HAM portfolio at 1.6x P/B and other ABL assets at 0.5x P/B.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Disclaimer:Network18 and TV18 – the companies that operate news18.com – are controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Newsbusiness » markets Diwali Stock Picks: JM Financial Suggests 10 Stocks To Buy For Muhurat Trading 2024
