As we are celebrating one of the biggest festivals of India — Diwali, investors would be examining various investment opportunities. The fiesta of light and the moment of delight, Diwali is considered as a very auspicious occasion as far as money making is concerned. To mark the beginning of Samvat 2074, Indian stock market will open today in a special Muhurat session for an hour between 6:30 pm to 7:30 pm. Being large variety of stocks available in the market, be it small cap or large cap, most of the investors might be confused today. We bring you 13 best blue-chip stocks to buy in Muhurat trading which may give you up to 90% returns.
Tata Steel — Indiabulls Ventures
Shares of Tata Steel have returned around 80% in the present calendar year. “Tata Steel post-2008 had been in a multiyear correction/sideways cycle which lasted for almost nine years. It is only in early 2017 Tata Steel broke out from its long-term sideways range and in spite of the near-term rally, it is still in early stages of its long-term Bull cycle. Stock is poised for strong gains with the multiyear uptrend. Tata Steel has shown classical signs of an early strong uptrend. Stock has repeatedly taken support at 200 EMA and has made higher tops & higher bottoms as per classical Dow Theory. Expecting stock to hit levels of 1,400,” according to Indiabulls Ventures. As per the projections of Indiabulls Ventures, the stock of Tata Steel may return over 95% from its current market price of Rs 709 to the expected levels of Rs 1,400.
Eicher Motors — Aditya Birla Money
Shares of Eicher Motors have risen over 40% in the current calendar year. Eicher Motors is one of the leading player in Indian two-wheeler and CV segments, operating under the brand “Royal Enfield”. It sells over 700,000 Royal Enfields per year. The stock of Eicher Motors has delivered a PAT CAGR of 40%+ over past five years with healthy ROE of 35%+. As far as valuation is concerned, it is valued at 30x FY19 P/E. It should continue to command premium being a unique player in the segment. We expect the stock to deliver 25% returns over the next 12 months.
Maruti Suzuki – Axis Direct
Shares of Maruti Suzuki has returned around 45% since January 2017. The research and brokerage firm Axis Direct has given an upside of 18% from its current market price of Rs 7,906 to a target price of Rs 9,298. Maruti Suzuki (India), is the largest passenger car company in India, is a subsidiary of Suzuki Motor Corporation of Japan. The company was formed as a government-owned company (Maruti Udyog Limited), it entered into a JV with Suzuki Motor Corporation. Over the years the company has been one the most successful player in the Indian car market.
Tata Motors – Globe Capital Market
The research and brokerage firm Globe Capital Market has given an upside of 33% from its current market price of Rs 424 to a target price of Rs 565. Tata Motors has won the first contract to supply electric vehicles to replace petrol and diesel cars used by the government. “Sharper improvement in overall sales is expected in second half of FY18. JLR to launch three new products and three refreshes until FY19, which will help it to outgrow the industry,” according to Globe Capital Market.
ITC – Reliance Securities
Shares of India’s largest FMCG player ITC have risen around 10% in the present year. The research and brokerage firm Reliance Securities has given an upside of 26.2% from its current market price of Rs 266 to a target price of Rs 336. “We believe that increased clarity post revised GST rates and the resultant price hikes will return the focus on earnings for the company. Despite challenging regulatory environment, the stock has traded at an average 1-year forward PE multiple of 30x in past five years, which provides cushion in our view,” according to Reliance Securities.
Dr Reddy’s Laboratories — Escorts Securities
The research and brokerage firm Escorts Securities has given an upside of 47% from its current market price of Rs 2,374 to a target price of Rs 3,500. “We expect H1FY18 to be muted for the US business with earnings recovering in H2FY18, following ramp up in recent launches like Doxil and Vytorin, which will offset incremental pricing pressure in base portfolio. Earlier than expected launch of Aloxi in Q4FY18 could be a positive surprise for Street,” according to Escorts Securities.
L&T — IDBI Capital
The research and brokerage firm IDBI Capital has given an upside of up to 24% from its current market price of Rs 1,142 to a target price of Rs 1,425. LT has won the orders awarded under the Western Dedicated Freight Corridor. “We forecast 12% CAGR in revenues till FY19. We anticipate a strong margin recovery through power, heavy engineering, electrical and automation and IDPL. Thereby, we believe EBITDA should grow by 20% CAGR over the next two fiscals,” according to IDBI Capital.
Indiabulls Housing Finance — Anand Rathi
Shares of Indiabulls Housing Finance are one of the top performers in the year 2017 so far. The stock has more than doubled in the nine-and-half-month period, jumped over 100%. The research and brokerage firm Anand Rathi has given an upside of 25% from its current market price of Rs 1,268 to a target price of Rs 1,580. According to Anand Rathi, strong structural drivers and government focus on housing for all by 2022 coupled with growth momentum in mid-income affordable housing will provide a boost. Indiabulls Housing Finance is the 2nd largest private housing finance company in India with an ‘AAA’ rating.
Hero MotoCorp — Indiabulls Ventures
Shares of Hero MotoCorp have risen about 22% from January 2017 so far. The research and brokerage firm Indiabulls Ventures has given an upside of 27% from its current market price of Rs 3,695 to a target price of Rs 4,707. Good monsoon would lead to successful harvest and government’s renewed focus on spurring rural income over the coming years is likely to provide a major boost to the automobile space and more likely to Hero MotoCorp due to its larger market share in rural areas, according to Indiabulls Ventures.
HDFC — ICICI Direct
Shares of HDFC have grown over 50% in the nine-and-half-month period of 2017 so far. With HDFC as the first specialised housing finance company (HFC) and also the largest with outstanding loan book at Rs 312,978 crore, “we expect total loan growth of 16.2% CAGR in FY17-19E to Rs 3,99,035 crore. We expect NIMs (calculated) to stay broadly stable at ~3.2% and spreads around~2.2%. HDFC has one of the best asset quality with nil NNPA,” according to ICICI Direct.
Bajaj Auto — HDFC Securities
Shares of Bajaj Auto have grown almost 20% in the year 2017 so far. “Healthy growth expectations in the remaining quarters of FY18. Margins could come back on track to the normal ~19.5 – 20% range from ~17% in Q1FY18. Exports showing good traction to reach double-digit growth. New non-equity JV with global industry major Triumph will help the company,” according to HDFC Securities.
HCL Technologies — Escorts Securities
“HCL Technologies is looking good on charts. It is giving a breakout on monthly charts with strong RSI and rising volume. Buy the stock in small quantity at current level at Rs 905 and add more on dip around Rs 870 with stop-loss below 845 for a price target of Rs 996 & Rs 1044 in short to medium term,” according to Escorts Securities.
IndusInd Bank — ShareKhan
Shares of IndusInd Bank have returned about 50% since January this year. IndusInd Bank has been among the best‐performing private sector banks with its superior operating metrics. Despite the banking sector facing tough times on asset quality owing to various reasons, IndusInd Bank’s asset quality has been excellent. Gross non‐performing asset (GNPA) ratio of IndusInd stands at 0.93% as of March 2017 which is among the best in the industry, according to Sharekhan.