After significant market volatility, Samvat 2072 is ending with gains of about 11% on the benchmarks. Analysts at Kotak are of the opinion that the year can be analysed in two parts. The first being the sharp fall till Budget 2016 and then an equally sharp, almost Vshaped, recovery till date. Here are the top 10 Diwali picks for Samvat 2073.
Arvind – IDBI Capital
The stock is currently trading at a FY18PE multiple of 16x (based on Bloomberg consensus estimate). We have a positive view on the stock.
Nilkamal Plastics – IDBI Capital
The consolidated EBITDA would grow at a CAGR of 13% in FY16-18E (with stable margin), while significant debt reduction and positive earnings from retail division (FY17) would boost earnings by around 16% CAGR during FY16-FY18. We maintain buy rating on the stock.
Avanti Feeds –
Neckline of the pattern is placed at 617; breakout from the neckline on higher volumes can trigger bull trend reversal. Stock may be bought in the range of R595- R615 for targets of R690 – R715, keeping a stop loss at R559.
Sanghvi Movers –
Stock can be bought in the range of R265 -R275 for targets of R305-R319, keeping a stop loss at R248.
Ashok Leyland –
Geojit BNP Paribas
We expect valuation to improve ahead due to better earnings outlook in the 2HFY17. Hence, we value AL at 20x on FY18EEPS and arrive at a target price of R116 with buy rating.
Astra Microwave Products – Geojit BNP Paribas
Given AMPL robust order prospects, niche expertise and strong execution capabilities we have a buy rating for the stock. We value AMPL a tP/E of 16x on FY18E with a target price of R157.
Kotak Mahindra Bank – HDFC Securities
We foresee core improvement led by loan growth, improving operating leverage, and LLP reverting to normalised levels. Maintain buy.
Lupin – HDFC Securities
After a 25-28% fall from its peak, we believe most of the negatives are priced in for LPC and present a great opportunity to buy this stock at attractive valuations.
Allcargo Logistics – Kotak Securities
We estimate ALL to be the biggest beneficiary of any recovery in trade and GST implementation.
Dish Tv India –
The company may see some benefits due to tussles between cable operators and broadcasters.
Stock CMP Target Upside potential
Arvind 359 525 46.00%
Nilkamal Plastics 1671 2350 40.00%
Avanti Feeds 609 715 12% – 20%
Snaghvi Movers 271 319 11% – 20%
Allcargo Logistics 181 215 18.80%
Dish TV India 95 110 15.80%
Geojit BNP Paribas After significant market volatility, Samvat 2072 is ending with gains of about 11% on the benchmarks. Analysts at Kotak are of the opinion that the year can be analysed in two parts. The first being the sharp fall till Budget 2016 and then an equally sharp, almost Vshaped, recovery till date. Here are the top 10 Diwali picks for Samvat 2073.
Arvind – IDBI Capital