Given that the rate rise cycle is almost at its apex, volatility in Samvat 2079 may calm down. To overcome the downbeat attitude and return to the route of a continuous increase in the markets, brokerage and research company Hdfc Securities wrote in a report that growth must resume both domestically and globally.
The brokerage company has suggested ten stocks that investors might seek to buy with a time horizon of until next Diwali as part of its Diwali Stock recommendations for Samvat 2079.
HDFC Securities’ Top Diwali Stock Picks:
Aster DM Healthcare: The ARPOB and Medical value of the firm is probably going to increase with a better case mix, pricing increases, and growth into Tier 1 cities. The memo said that because of its emphasis on specialities, tourism may take off. The stock is rated Buy by the firm, with a target price of ₹278.
Bharat Dynamics: “BDL plans to use its knowledge to create new goods including heavyweight torpedoes, ATGMs, and SAMs of the next generation, which will boost its bottom line. Large projects being granted (Akash and next-gen ATGMs are anticipated to be awarded shortly), strong revenue visibility supported by a strong pipeline, and a focus on indigenisation and internal efficiency are likely to fuel profits growth, the brokerage added. (Target price: ₹1,022).
Bharat Electronics: BEL’s financial profile is still good, according to HDFC Securities, thanks to high profitability and return indicators, zero net debt, excellent liquidity, and strong metrics for debt coverage. (Target price: ₹123).
Birla Corporation: The brokerage thinks the company’s numerous cost-cutting measures, increased clinker capacity, and coal extraction from owned mines will help revenue and profit expansion.(Target price: ₹1,069)
Cipla: “One India (branded generics, trade generics, and consumer health) accounted for 45% of Cipla’s revenue, followed by the US (20%), South Africa (17%), Sub-Saharan Africa (17%), RoW (13%), and the API segment (3%). This geographic and product diversity shields the business from sizable unfavourable fluctuations in sales and profitability. (Target price: ₹1,283)
Deepak Fertilisers: According to the company, a shift in its product mix, head room availability of additional capacities resulting from improved operational management and de-bottlenecking, as well as greenfield expansions, will support the company’s long-term growth. (target price: ₹1,058)
ICICI Bank: “To position itself for the next phase of expansion in the retail and SME categories, the bank is concentrating on technological investments and digital initiatives. The company’s subsidiaries, who excel in their specialised industries, significantly increase the valuation overall.” (TP: ₹999)
Rail Vikas Nigam: The execution of bigger projects on a low base should drive growth higher in the upcoming years, and the firm has a strong balance sheet and is offered at an alluring dividend yield of about 5%, it noted. (TP: ₹42.25)
Sun TV: Due to its size, vertical integration, presence throughout the value chain, significant negotiating power, and minimal finance expenses, Sun TV has posted good profit margins/accruals in recent years. (TP: ₹624)
TCI Express: Although our projection for margin remains lower than the management’s guidance, we expect the business to generate 18%/25%/25% CAGR increase in revenue, EBITDA, and APAT over the next four years. (TP: ₹2,169)
