Muhurat Trading Pics 2023: Samvat 2079 has seen the Nifty making new lifetime highs amidst a volatile global environment. Going ahead, for Samvat 2080, the global geopolitical situation will remain grim as the Israel-Palestine war has added to the already crippled global order due to Russia-Ukraine war. Also, the strong resilience of the US economy despite high inflation is likely to keep policy rates high which can impact the FPI inflows in the near term.
Reliance Securities has come out with a list of ten stocks this Diwali for Samvat 2080 based on its assessment of markets and outlook. These stocks are from sectors like banking, auto, and IT. “We believe every decline in the market is likely to present a good opportunity as strong earnings rollover to FY26E will make the markets more attractive compared to the long-term averages, setting the goal post for NIFTY50 to scale to 22000+ over the next one year,” Reliance Securities said.
Here are 10 stock recommendations from Reliance Securities:
HDFC Bank | Buy | CMP: Rs 1494 | Target: Rs 1775 | Upside: 19%
With the conclusion of the merger with HDFC effective from July 1 2023, it is expected to drive up the scale of the bank, strengthen its presence in certain retail segments and offer more growth opportunities by virtue of the acquired customer base which stood at 91M including merged entity customers.
LTIMindtree | Buy | CMP: Rs 5160 | Target: Rs 5925 | Upside: 15%
Healthy deal pipeline and an increasing number of active clients provide strong growth visibility over the medium term and have also exhibited a healthy operating profitability level of more than 18% over the years, which has led to a robust return on capital employed in excess of 40%.
Divi’s Labs | Buy | CMP: Rs 3522 | Target: Rs 3850 | Upside: 9%
DLL continues to maintain a sound capital structure, which is characterized by growing net worth and low debt levels. It expects growth in future years on account of the increased capacity of the manufacturing facilities, expanded Sartan portfolio (Hypertension) and enhancing its focus on Contrast media (Radiology).
Ambuja Cement | Buy | CMP: Rs 421 | Target: Rs 495 | Upside: 18%
The company at a consolidated level is likely to incur a large capex of nearly Rs 22,000 crore over the next 2 years towards capacity addition and is likely to be funded through internal accrual and existing liquidity.Strong cash flows, expansion of capacities and consistent improvement in earnings with strong volume growth of 10-12% are key positives.
Hero MotoCorp | Buy | CMP: Rs 3170 | Target: Rs 3620 | Upside: 14%
HMCL is improving its presence in electric two-wheelers through its investee company Ather Energy Private Limited and committed to adapting to the changing customer requirements. It is also focused on building a strong portfolio for EV leadership.
IDFC First Bank | Buy | CMP: Rs 83 | Target: Rs 105 | Upside: 27%
IDFC Bank has applied to the Reserve Bank of India, SEBI, NSE, and BSE for the merger of IDFC Limited and the merger process is on track.
IDFC Bank’s brand has become strong, leading to strong deposit growth and its deposit per branch is comparable to large private banks despite being a new entrant. Valuations have declined after a sharp correction of 20% from its 52-week high.
UPL | Buy | CMP: Rs 554 | Target: Rs 700 | Upside: 26%
Backward integration and supply-chain management have strengthened operating efficiencies.. As a sizable portion of raw material and power requirements is met in-house, the group is assured a steady supply, with lesser price volatility.
Better than expected growth in revenues, with operating profitability in excess of 21-22%, ensuring strong cash generation and valuations at the lower end.
Navin Fluorine | Buy | CMP: Rs 3630 | Target: Rs 4300 | Upside: 18%
Its new capex of Rs4.5bn for setting up a new 40,000 tonnes per annum HF capacity at Dahej is expected to come on stream in two years and the launch of new products in agrochemicals through Multi-Purpose Plant (MPP) will add value. Valuations are in line with the long-term averages and risk-reward is favorable from current levels.
Happiest Minds | Buy | CMP: Rs 825 | Target: Rs 960 | Upside: 16%
Happiest Minds is actively pursuing M&A opportunities, focusing on domain expertise, technology, customer access, and potential for growth in new geographies and revenue growth guidance for the year has been revised to 12% on an organic basis, with additional growth from acquisitions and EBITDA guidance for FY ‘24 remains at 22% to 24%
EPL | Buy | CMP: Rs 195 | Target: Rs 228 | Upside: 17%
EPL’s focus on product and process innovation to develop sustainable packaging solutions across product categories and it held 89 patents and had 65 filing pending grants till FY23.New markets of Brazil will add volumes and increased margins along with domestic volume growth.
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