Diwali Stock Picks 2023: The Indian stock market has delivered a strong performance since Diwali last year. While the Nifty 50 is up around 9 per cent, the broader markets have sharply outperformed since last Samvat.
Ahead of Diwali 2023, Axis Securities has shared its nine picks for muhurat trading, on fundamental basis, which may deliver a return of up to 34 per cent to the investors in next one year.
The domestic brokerage in its report said, “Samvat 2080 will be a very interesting year to watch out for the global economy. We embark on this new Samvat with a narrative marked by ‘Higher for Longer’ interest rates, volatile bond yields, geopolitical conflicts in the Middle East, and fluctuating oil prices. However, on the domestic front, the prospects for the Indian economy appear notably brighter and more promising. In the midst of a volatile global landscape, India remains in a favourable position for growth. According to the estimates of the International Monetary Fund (IMF), the Indian economy is set to be the fastest-growing economy in FY24 and FY25 within the emerging market category. This is poised to be a significant driving force behind Indian equities in the foreseeable future.”
Here are 9 stock picks by Axis Securities for Samvat 2080:
TVS Motor Company | CMP: 1,569 | Target: Rs 2,100 | Upside: 34%
Axis recommends a Buy rating on the stock with a target price of Rs 2,100, valuing it at a sustainable premium P/E multiple of 30X on December 2025 core EPS, other investments at 1x P/BV, and TVS Credit Services at 2X P/BV.
Bharti Airtel | CMP: 924 | Target: Rs 1,155 | Upside: 25%
The company’s business fundamentals remain strong and continue to improve. The management foresees huge potential for continued strong revenue and profit growth, supported by expanding distribution in rural areas, investments in the network, and increasing 4G coverage.
APL Apollo Tubes | CMP: 1,570 | Target: Rs 1,950 | Upside 24%
Incremental production from the Raipur plant will drive higher EBITDA/t. We value APL Apollo Tubes at 33x PE of September 2025 EPS on continued demand visibility to arrive at our TP of Rs 1,950/share. We maintain our BUY rating on the stock.
Jyothy Labs | CMP: Rs 358 | Target: Rs 440 | Upside: 23%
We expect the company to deliver healthy Revenue/EBITDA/PAT growth of 13%/25%/25% CAGR over FY23-26E respectively which will elevate the company’s overall return profile. At CMP, the company is currently trading at 32x/29x its FY25/26 EPS and with a better earnings growth visibility and return profile, the stock appears attractive in the small to midcap consumer space.
KPIT Technologies | CMP: Rs 1,221 | Target: Rs 1,500 | Upside: 23%
KPIT has a resilient business model and strong earnings visibility through its multiple long-term contracts with globally leading brands. It is well-positioned to capture the immense growth opportunity in the industry considering robust demand for ER&D spend, focus on client retention for long-term sustainable growth and margin tailwinds driven by cost efficiencies, lower input costs, rupee depreciation, and lower travel cost.
HDFC Bank | CMP: 1,476 | Target: Rs 1,800 | Upside 22%
Axis remains confident in the bank’s ability to sustain its growth momentum given the enormous opportunity post the merger in terms of a larger customer base, larger distribution network, and higher cross-sell opportunities to existing customers of HDFC Ltd. Moreover, we believe the current valuations, too, are reasonable and below the long-term average.
Astral | Rs 1,845 | Target: 2,150 | Upside: 17%
Axis notes management commentary which expects strong demand to continue and increased in FY24 volume guidance.
Ahluwalia Contracts India | CMP: Rs 664 | Target: Rs 770 | Upside: 16%
With favorable attributes such as a strong and diversified order book position, healthy bidding pipeline, new order inflows, its asset-light model, and emerging opportunities in the construction space, we expect the company to generate healthy free cash flows moving ahead and deliver Revenue/EBITDA/APAT growth of23%/26%/27% CAGR over FY23-FY25E, Axis Securities said.
SBI Life Insurance | CMP: Rs 1,345 | Target: Rs 1,535 | Upside: Rs 14%
SBI Life continues to maintain its leadership position with the best in the industry cost ratios. The company has been able to deliver strong APE growth over the past years and Axis Securities expects the momentum to continue with a more balanced product mix.
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