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Diwali Special: 10 wealth-creation ideas for this ‘Muhurat’ trading

10 wealth-creation ideas for this ‘Muhurat’ tradingBCCL
10 wealth-creation ideas for this ‘Muhurat’ trading
These are the 10 stocks which brokerage houses are recommending this Diwali:
Sundram Fasteners
- Sundram Fasteners is headquartered in Chennai. It is a part of the $5 bn TVS group. The company’s clientele includes reputed companies such as Ashok Leyland, M&M, Tata Motors, Daimler, Siemens.

- India is becoming a hub for auto components manufacturing with major global auto companies like Volkswagen, Suzuki, General Motors, Mercedes, etc. setting up base in India.

- According to IDBI Capital Markets, given the attractive industry dynamics, the company is expanding capacities of certain products and setting up manufacturing facilities for newer product range to meet the rising demand for its products under the able leadership of Suresh Krishna (CMD).

- The brokerage house is bullish on Sundaram Fasteners with a target price of Rs 590.
LupinDefault Agency
- Centrum Broking expects the pharma company to benefit from strong growth across all markets along with its enhanced manufacturing and R&D capabilities.

- "At CMP, the stock trades at 19.3x its FY19E EPS and 11.5x FY19E EV/EBITDA. We continue to remain positive on the stock," Centrum Broking said.
ICICI Prudential Life InsuranceDefault Agency
ICICI Prudential Life Insurance
- India holds immense opportunities to expand life insurance business, given the vast untapped potential, favourable demographics and an increasing awareness of the need for financial protection from which ICICI Prudential has a lot to gain.

- HDFC Securities said, "ICICI Prudential has strong financials and a healthy balance sheet. It is currently trading at 3.7x P/EV for FY17, which is lower than the recent listing of SBI Life insurance at 4.1x P/EV for FY17. Our target 1-yr fwd multiple of 3.8x FY19E P/EV yields 12M target price of Rs 520," HDFC Securities said.
FIEM IndustriesDefault Agency
FIEM Industries
FIEM generates almost 95 per cent of its automobile business revenues from the 2W segment and hence recovery in this segment will be positive for the company, according to Kotak Securities. The brokerage house is positive on FIEM with a target price of Rs 1,254. Kotak Securities believes that EBITDA margin performance is expected to improve gradually for the company.
Dewan Housing Finance (DHFL)BCCL
Dewan Housing Finance (DHFL)
- Angel Broking expects the company’s loan growth to remain 23 per cent over next two years and earnings growth is likely to be more than 28 per cent.

- The stock currently trades at 1.6x FY2019E ABV. The brokerage house maintains an ‘Accumulate’ rating on the stock, with a target price of Rs 650.
Bata IndiaBCCL
Bata India
- IDBI Capital Markets is positive on Bata India with a target price of Rs 925. The shift from basic-need-based category to evolving-fashion is visible in same stores sales growth (SSSG).

- Bata’s retail business, which is more than four-fifths of revenue, grew by 15%. Thanks to 10% SSSG in Q1FY18, the additional flip in revenue could come from new store addition.

- IDBI Capital Markets believes that if the current trend is to sustain, the revenue and net profit could grow at a CAGR of 12 per cent and 24 per cent over the next two fiscals. "The stock, however, is trading at 52.2x its FY2019E earnings. Yet this does not capture the earnings growth potential, in our view,” IDBI Capital Markets said.
Bajaj FinservDefault Agency
Bajaj Finserv
- Sharekhan recommended Bajaj Finserv this Diwali. Bajaj Finserv (BFS) is the holding company comprising of lending business and insurance companies. The insurance subsidiaries of BFS: Bajaj Allianz General Insurance Co Ltd (BAGIC) and Bajaj Allianz Life Insurance Co Ltd (BALIC) too have maintained strong operating metrics.

- India is significantly underpenetrated in the insurance vertical which will help private players including BAGIC and BALIC to continue gaining market share. Sharekhan believes BFL, BAGIC and BALIC have plenty of headroom to grow and can outperform the industry in terms of growth. Hence, the brokerage firm finds significant long-term value in BFS and expect its subsidiaries’ earnings momentum to continue.
Bajaj AutoDefault Agency
Bajaj Auto
- According to HDFC Securities, healthy growth expectations in the remaining quarters of FY18 for the domestic 2W market will auger well for the company, with a new product range on offer. Recent non-equity JV with Triumph to help company strengthen its hold over mid-capacity motorcycles.

- HDFC Securities has 12-month target of Rs 3,820 for Bajaj Auto.
Asian Granito
- Kotak Securities is positive on Asian Granito with a target price of Rs 603. The company is fourth largest player in tile industry and set to benefit from demand growth. Asian Granito has a capacity of 33 mn sq meter spread across 8 plants in Gujarat.

- According to Kotak Securities, revenues from quartz division are likely to improve sharply going forward owing to new product addition as well as higher branding.
Aditya Birla CapitalDefault Agency
Aditya Birla Capital
- Aditya Birla Capital (ABCL) is the holding company of all the financial services businesses of the Aditya Birla Group. The company listed as a separate entity in September 2017 after a composite scheme of arrangement under which Aditya Birla Nuvo was merged with Grasim Industries and the financial services business - Aditya Birla Financial Services Ltd (ABFSL), was subsequently brought under Aditya Birla Capital.

- For FY17, aggregate revenue of ABCL stood at Rs 10,600 crore and profit before tax at Rs 1,150 crore. Centrum Broking said, "Going ahead, with presence in high growth businesses aided by a pan-India presence and healthy financials, the company is expected to perform well on consolidated basis."

Wish you all a very Happy Diwali and a Prosperous New Year! Happy investing.
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