Diwali, the festival of lights, is a time of renewal, prosperity, and joy for many Indians. Samvat 2079 has come to an end and now we are entering Samvat 2080. Currently, the Indian economy finds itself in a sweet spot of growth.
The celebration of Diwali usually marks the start of the new year according to the lunar Vikram Samvat calendar. On Diwali, there is a one-hour trading period known as Muhurat trading or auspicious trading.
The National Stock Exchange (NSE) has declared that on November 12, 2023, the stock market will be open for muhurat trading from 6:00 pm to 7:15 pm in honour of Diwali.
Listed below are five stocks recommended by various Brokerages this Diwali for a potential upside of up to 34 percent:
Dr. Reddy Laboratories Ltd
The shares of the pharma company opened lower on Friday’s trading session at Rs. 5,439 compared to its previous close at Rs. 5,439. The share closed its trading day at Rs. 5,424.90 apiece.
HDFC Securities one of the well-known brokerage firms, has given a ‘Buy’ target on the company’s stock with a target of Rs. 6,250 indicating a potential upside movement of around 15 percent.
The investment rationale for providing such a recommendation pertains to the company’s healthy numbers for FY23 with the highest-ever sales, strong cash flow generation, and improvement in return ratios on the back of the gRevlimid (lenalidomide) opportunity in the US. The growth was supported by the launch of 25 new products during the year, including Revlimid.
United Spirits Ltd
The shares of breweries company opened Friday’s trading session lower at Rs. 1,080 making a loss of around 4 percent compared to its previous close at Rs. 1,097. And closed its day at Rs. 1,044 apiece.
HDFC Securities, one of the well-known brokerage firms, has given a ‘Buy’ target on the company’s stock with a target of Rs. 1,195 indicating an upside movement of around 15 percent.
Socializing is back with a bang, with more consumers coming to upper segments. UNSP is also seeing a lot of tourist traffic. These factors will drive demand. Mid-prestige, Upper prestige, and Luxury premium grew 43 percent, 32 percent, and 37 percent respectively in FY23.
Reliance Industries Ltd
The share of this large-cap company opened flat in Friday’s trading session at Rs. 2,305 compared to its previous close at Rs. 2,310.
HDFC Securities, one of the well-known brokerage firms, has given a ‘Buy’ target on the company’s stock with a target of Rs. 2,695 indicating a potential upside movement of around 17 percent.
The investment rationale for providing such a recommendation pertains to Reliance’s expecting nationwide 5G coverage in India by Dec 2023 and launching Jio Bharat to gain market share.
Reliance will continue to expand in all categories viz., grocery, FMCG, electronics, fashion, etc. through physical as well as digital platforms. Reliance’s priority is to set up a battery Giga factory by 2026. It will manufacture battery chemicals, cells, and packs, leading up to energy storage solutions, and will include a battery recycling facility.
TVS Motors Co Ltd
The shares of the bike manufacturing company on Friday’s trading session opened flat at Rs. 1,645 compared to its previous close at Rs. 1,646. The share closed its trading day at Rs. 1,631 apiece.
Axis Securities, one of the well-known stock brokers, has given a “Buy” target on the company’s shares with a target of Rs. 2,100 indicating a potential upside movement of around 30 percent.
The investment rationale for providing such a recommendation pertains to, the retail demand in the domestic urban market is strong, and rural demand is expected to do well in the coming months on account of the festive season. Furthermore, the EV market share of TVSL in H1FY24 stands at 20 percent, which stands higher than its market share.
Union Bank of India
The share of the banking company opened Friday’s trading flat at Rs. 103 compared to its previous close at Rs. 103.95. The shares closed its trading session at Rs. 104 apiece.
IDBI Captial, one of the well-known brokerage firms, has given a ‘Buy’ target on the company’s stock with a target of Rs. 138 indicating an upside movement of around 34 percent.
The investment rationale for providing such a recommendation pertains to the healthy balance sheet where advances grew by 12 percent YoY in the corporate sector and retail segment advances grew by 17 percent YoY. Asset quality ratios also improved. Additionally, the bank’s valuation at 0.8x P/B FY24 is relatively inexpensive compared to its peers.
Written By Vaibhav Patil
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