Top 10 Stock Picks With Strong Fundamentals For Diwali

money-making-ideas

Experts have recommended 10 stocks with good fundamentals to buy for Diwali, according to a report in the Economic Times.

These stocks are good money making ideas and can be added to the portfolio.

Top 10 stocks with good fundamentals to buy

Stock

Target Price (Rs)

Recommended by

HUL

2,135

Axis Securities

Kotak Mahindra Bank

1,800

Axis Securities

Aarti Industries

875

Axis Securities

Dixon Technologies

3,649

Axis Securities

Dr. Reddy’s Labs

2,900

Axis Securities

PVR

2,050

Indiabulls Ventures

IndiGo

2,100

Indiabulls Ventures

Nestle

15,500

Indiabulls Ventures

Torrent Pharma

340

Indiabulls Ventures

Concor

680

Indiabulls Ventures




Recommended

12 Stocks With Good Fundamentals To Buy For 2019

Sharekhan has issued a research report in which it has recommended investment in 12 stocks which have strong fundamentals and a good track record of profitability and dividends. All the 12 stocks are well known names and have given multibagger returns to investors in the past

>>Click here to read the list of these stocks <<

HUL | Target Price: Rs 2,135

HUVR offers amongst the most visibility (~18% CAGR over FY19-21E) in the FMCG-staples packs with multiple drivers for growth over FY20E/21E. Axis Securities believes, its (a)WIMI strategy, (b)strong execution, (c)thrust on Naturals portfolio, (d)focus on premiumization and market development to drive profitability improvement, (e)extensively employing technology and data analytics to remain ahead of competition and (f)RM led tailwinds in FY20 could aid GMexpansion. At CMP, the stock trades at 49.8x FY21E, it said in a note. (Source: Axis Securities)

Kotak Mahindra Bank | Target Price: Rs 1,800

Kotak Mahindra Bank is well positioned due to higher capitalisation (TierI-17.3%), a strong liability franchise (CASA51%) and benign asset quality, which would allow it to gain further market share, Axis Securities said. The performance of non-banking businesses (life insurance, AMC business) remains strong on growth & profitability. The bank has been trading at rich valuations consistently due to its superior return ratios with RoA of 1.7%. Promoter stake dilution could be an overhang. However, the brokerage reckons this will be a minor blip in an otherwise strong earnings trajectory. Based on SOTP valuations, it has a target price of Rs 1,800 on the stock. (Source: Axis Securities)

Aarti Industries | Target Price: Rs 875

Although the management has sharply lowered its growth guidance, the brokerage believes the same has been factored in the CMP. The multi-year contracts won by the company shall begin contributing from FY21E onwards which could offset the headwinds from Auto and Agrochem sectors in the near term. Pharma segment will take the drivers seat with sustainable margin profile of +20% over FY19-21E. At CMP, stock trades at 18x its Sept21 EEPS. (Source: Axis Securities)

Dixon Technologies | Target Price: Rs 3,649

The brokerage expects strong growth in key segments viz, Consumer Electronics, Lighting and Home Appliances led by strong order book. Addition of new clients, recovery in mobile segment and robust growth in Security surveillance segment to aid revenue growth going forward. It maintains a buy with a target price of Rs 3,649. (Source: Axis Securities)

Dr. Reddy’s Labs | Target Price: Rs 2,900

With gaining traction in domestic formulation, key high-value launches in the US market coupled with cost rationalization benefits will translate ~17% CAGR earnings growth over FY19-21E, Axis Securities said in a note. It is constructive on DRRD, given improving FCF generation and high earnings growth visibility. Regulatory hurdles, delay in US approvals of niche products (like gNuvaring and gCopaxone), and slowdown in domestic formulation business & other key markets remain major concerns. (Source: Axis Securities)

PVR | Target Price: Rs 2,050

PVR has constantly been focusing on screen expansion plans and innovation focus. Currently, there are ~9,650 cinema screens in India, of which only ~30% are multiplex screens, while the majority is still constituted by single screens. On account of the huge demand for multiplexes, the brokerage has a BUY rating on the stock. The stock is currently cheaply valued at 30x FY21 PE and the brokerage would like to assign a PE multiple of 35x on FY21E on an EPS of Rs 60.74 to arrive at a target price of Rs 2050 per share. (Source: Indiabulls Ventures)




IndiGo | Target Price: Rs 2,100

With the sad demise of Jet Airways, Indigo has turned out to be the clear beneficiary in terms of market share. The market share of Indigo has turned out to be at 47% and the brokerage believes this will continue to grow in the future. The stock is currently trading at 13.53x FY21 PE and the brokerage would like to allot a PE multiple of 15x to arrive at a TP of Rs 2,100. (Source: Indiabulls Ventures)

Nestle | Target Price: Rs 15,500

The company continues to do good and its Maggie segment is gaining traction once again. Post the launch of Milo, the brokerage believes the company will pick up in the volume growth. At CMP, the stock is trading at a discount to its FMCG peers and hence the brokerage would like to allot at PE multiple of 43x on FY21 EPS of Rs 353 per share to arrive at a target price of Rs 15,500. (Source: Indiabulls Ventures)

Torrent Pharma | Target Price: Rs 340

The recent price move indicates a base building process with strong demand zone near rising support trendline which further validates the bullish structure and indicates limited downside from the current levels. The overall structure indicates limited downside from the current levels and hints for a new high in the long-term. (Source: Indiabulls Ventures)

Concor | Target Price: Rs 680

A four-year consolidation breakout has strong bullish implications especially when a preceding trend is strong on the upside. The pattern suggests the continuation of primary uptrend after a brief pause. Stock is likely to witness a multi-year uptrend going forward. (Source: Indiabulls Ventures)




Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Leave a Comment

Your email address will not be published. Required fields are marked *