Stocks to buy: ICICI Bank, Cipla among Muhurat’s top picks, investors could pocket smart returns until next Diwali
Indian stock exchanges BSE and NSE will host a special one-hour trading session on Muhurat on the occasion of Diwali on Monday, October 24. The hour-long auspicious session will mark the start of Samvat 2079, the new year according to the Hindu calendar. At Samvat 2079, volatility is expected to continue, but at a slower pace. HDFC Securities analysts continue to favor companies focused on the domestic market and opportunities such as healthcare, defense, banking, entertainment and infrastructure for next year. Focusing on these themes, the brokerage announced 10 picks for Samvat 2079. “These stocks have strong fundamentals and some headroom in their valuation to deliver superior returns to investors,” he said. she declared.
HDFC Securities Diwali 2022 Muhurat Stock Picks
Aster DM Health
Analysts expect revenue, EBITDA and PAT to grow at a CAGR of 9%, 7% and 10% respectively in FY22-24. The stock is trading at an attractive valuation, representing a significant discount to its Indian peers, they said. “We believe such a high discount is unwarranted given the stable operating performance and increasing share of the Indian business, while being supported by stable growth prospects in the GCC,” they said. they added. The brokerage recommends buying the stock at R242 and adding more on dips to Rs 211 for a target price of Rs 278 until next Diwali.
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Analysts expect revenue, EBITDA and PAT to grow at a CAGR of 26.7%, 18.8% and 17.7% respectively in FY22-24. “We recommend investors to buy the stock at Rs 858 and add more on the dips to Rs 774 for a target price of Rs 1022 until next Diwali,” they said.
According to the brokerage, BEL’s financial profile remains strong due to healthy profitability and yield indicators, zero net debt, superior liquidity and strong debt hedging measures. He expects the company to report a revenue CAGR of 14% from FY22 to FY24. “We recommend investors to buy the stock at R101 and add more on the dips to Rs 87 for a target price of Rs 123 until the next Diwali,” the report said.
HDFC Securities analysts believe that various cost-cutting initiatives taken by the company (such as waste heat recovery and solar power plants to replace high-cost grid power), increasing the capacity of clinker and coal mining from captive mines would help drive revenue and margin growth. “We recommend investors to buy the stock at Rs 896 and add more on the dips to Rs 784 for a target price of Rs 1069 until next Diwali,” they said.
HDFC Securities expects a single-digit CAGR of domestic formulations revenue on a high FY22 basis. net profit respectively in FY22-24. “We recommend investors to buy the stock at Rs 1109 and add more on dips to Rs 992 for a target price of Rs 1283 until next Diwali,” the brokerage report said.
Deepak Fertilizers & Petrochemicals
Analysts forecast a 14% CAGR in revenue, driven by strong growth in both segments. The EBITDA margin is estimated between 18 and 20% over the next two years. Strong revenue and a stable margin could result in a 17.5% CAGR of net profit over the same period, they said. “We recommend investors to buy the stock at Rs 895 and add more on dips to Rs 791 for a target price of Rs 1058 until next Diwali,” they added.
According analysts say India’s banking sector is on the cusp of a credit bull cycle. ICICI Bank is one of the best positioned large private sector banks. Over the years, it has consistently focused on de-risking its lending portfolio by shrinking its business portfolio and focusing on the lower-risk, high-margin retail segment, they noted. “We recommend investors to buy the stock at Rs 870 and add more on the dips to Rs 773 for a target price of Rs 999 until next Diwali,” they added.
The brokerage noted that the company has a strong balance sheet and is available at an attractive dividend yield of around 5%. “Given the strong outlook, we believe the stock is available at a reasonable valuation. We recommend investors to buy the stock at Rs 36.8 and add more on the dips to Rs 32.75 for a target price of Rs 42.25 until the next Diwali,” he said, adding that a stake sale by the government could, however, prove to be an overhang for the stock in the short term.
Sun TV Network
According to analysts, the growing interest in regional content among the Indian population across borders is leading to an increase in overseas viewership, attracting foreign investment. “Given future growth and a healthy cash balance, we have a positive view on the stock. We recommend investors to buy the stock at Rs 536 and add more on the dips to Rs 468 for a target price of Rs 624 until next Diwali,” they said.
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HDFC Securities analysts expect the company to see 18%, 25% and 25% CAGR growth in sales, EBITDA and APAT in FY22-24. With improving profitability, RoE and RoCE are expected to remain high. “We recommend investors to buy the stock at Rs 1,890.4 and add more on the dips to Rs 1,640 for a target price of Rs 2,169 until next Diwali,” they said.
(The stock recommendations in this story are from the respective research analysts and brokerage firms. FinancialExpress.com takes no responsibility for their investment advice. Investments in the capital markets are subject to rules and regulations. Please consult your investment advisor before investing.)