HDFC Securities Unveils Top 5 Diwali Stock Picks for Samvat 2080

HDFC Securities chooses these five stocks as the top picks for Samvat 2080. Read on to know the stockbroking platform’s forecast on market scenario for the upcoming period
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Diwali Stocks,
HDFC Securities, Diwali Stocks, Diwali

Amid the Nifty scaling new heights in 2023, stockbroking platform HDFC Securities has now released its list of Diwali stock picks that investors should look forward to in Samvat 2080.

HDFC Securities has asked investors to be wary about global conflicts, inflation, and rising bond yields.

The stockbroking platform expects the market to remain volatile till H1 2024, and has favoured domestic businesses in materials, pharma, oil and gas, small finance banks, petrochemicals, consumption, power EPC, and restructuring plays as its top sectors.

So, here’s a look at the five stocks chosen by the stockbroking platform for Samvat 2080.

1] Dr Reddys Laboratories Ltd (Pharmaceuticals)

(Current Market Price: Rs 5,345.35, Buy Range: Rs 4,850-5,400, Target: Rs 6,250)

Dr. Reddy’s reported healthy numbers for FY23 with the highest ever sales, strong cash flow generation and improvement in return ratios on the back of gRevlimid (lenalidomide) opportunity in the US. Even in H1 FY24, overall numbers remained strong largely led by robust US and Europe business.

2] Equitas Small Finance Bank (Small Finance Bank)

(Current Market Price: Rs 91.35, Buy Range: Rs 82-92, Target: Rs 112)

As of September 2023, the bank has reported total deposits worth Rs 30,839 crores, which has grown at a healthy rate of 42 per cent year-on-year (y-o-y) and 11 per cent quarter-on-quarter (q-o-q). Now the portfolio is largely secured in nature and around 83 per cent of the book is of fixed-rate advances.

3] GAIL (India) (Gas Transmission/Marketing)

(Current Market Price: Rs 118, Buy Range: Rs 106-120, Target: Rs 140)

GAIL plans to add 6,935 kms of gas transmission pipelines and 560 ktpa of petrochemical capacity over the next 2-3 years, at an investment of Rs 42,200 crore, and over half of it has already been invested. GAIL owns 70 per cent of India’s gas transmission network, which is its stable, non-cyclical and regulated business.

4] Godrej Industries (Diversified)

(Current Market Price: Rs 621, Buy Range: Rs 555-624, Target: Rs 735)

The revenue of Godrej Properties, which is the real estate subsidiary of Godrej Industries Limited (GIL), has more than doubled in Q1FY24, rising 282.6 per cent y-o-y to Rs 936 crore. The Godrej family

is undergoing a split among brothers and this could lead to value unlocking for GIL, as it is the holding company in the group and currently suffers from a large holding company discount.

Grasim Industries (Cement & Paints)

(Current Market Price: Rs 1,878.3, Buy Range: Rs 1,700-1,925, Target: Rs 2,275)

The company is targeting to commission three paint plants with a combined capacity of 0.63m litres by the end of FY24. The company is about to raise equity of Rs 4,000 crore through a rights issue.

Disclaimer: All stock recommendations in the article are from HDFC Securities. Outlook Money’s editorial team is not responsible for any inaccuracies in the content. Readers should exercise caution when looking at the data, and they should do their own research before investing and not blindly pick up the recommendations.

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