Stocks to buy this Diwali: The year 2022 has been full of ups and downs for the stock market investors. There are many reasons behind the ongoing movement in the market. For example, there is an outbreak of inflation in the world, there is uproar in global politics, the war between Ukraine and Russia continues, the US and China are face to face on the issue of Taiwan, central banks are increasing the interest rate, thereby increasing the liquidity. is decreasing. In the midst of all these circumstances, the global economy is rapidly going towards recession. This fluctuation is expected to continue in the coming times.
Nifty’s annual growth may be 15 percent
Brokerage firm Sharekhan believes that the annual growth for Nifty 50 between FY 2022 to FY 2024 can be 15 percent. In such a situation, he has selected 15 stocks before Diwali, which can be included in the portfolio for the medium term. Good earnings are possible in these stocks in the next two years. In the stocks in which the investment has been advised, every fall will have a buy suggestion. Wealth creation will help if investors stay patient for the long term. The brokerage has selected the stocks on the basis of fundamental analysis. For this, RS means right sector, RQ means right quality and RV means right valuation has been made the basis.
Bank of Baroda
The first name from the list of Sharekhan is that of Bank of Baroda. Last week, the stock closed at Rs 131. The brokerage says that the banking sector is good and the quality of this stock is good and the valuation is also good. In such a situation, it is advisable to buy for the financial year 2024.
The second selection of the banking sector is ICICI Bank. Its quality and valuation is also good. Bank’s loan growth is good. Margins are increasing continuously. The operational profit of the bank is very strong.
ITC has also been selected for the next two years. The valuation of this stock is good and the quality is good. Good growth is expected in the cigarette business. The annual growth of non-cigarette business can be 17 percent. If the government increases the tax on cigarettes or tobacco, then it will be negative for the company.
The fourth name of the list is of Sun Pharma. Sectors, quality and valuations are good. The brokerage believes that the company’s Revenue, EBITDA and Profit After Tax (PAT) will grow at an annual rate of 12, 13 and 14 per cent till the financial year 2024.
Titan Company of Tata Group is also in the list of brokerage. Last week, the stock closed at Rs 2617. The sector, quality and valuation of this stock is good. The company’s focus is on 20 percent annual growth. The plan for the next five years is brilliant. The cash reserve of the company is more than 2000 crores. The company will use 75 per cent of the cashflow for growth. 25 percent will be distributed as dividend.
Mahindra CIE Automotive
Shares of Mahindra CIE Automotive closed last week at Rs 303 level. Sector, quality and valuation is perfect. 49 percent of the company’s revenue comes from India and 51 percent from Europe. This stock has given a return of 57 per cent in the last six months. The CAGR is estimated to be 48.6 percent between the calendar year 2021 to 2023.
Kirloskar Oil Engines
Shares of Kirloskar Oil Engines closed at Rs 271 last week. The sector, quality and valuations are excellent. Has given a return of 77 percent in the last six months. Data centers and real estate will benefit from spurt in demand. The company will get the benefit of infrastructure development and PLI scheme in the form of boost demand. The company’s business is in Electric Pump, Water Management.
The brokerage has also chosen Greaves Cotton for the next two years. Last week, this stock closed at Rs 151 level. Sector, quality and valuation are fine. The company is getting benefits from the adoption of an electric vehicle. The CAGR is expected to be more than 22 per cent between the financial years 2021 to 2024.
Devyani International is in a strong position on the fundamentals basis. Sector, quality and valuation is perfect. Annual growth is expected to be 43 per cent till the financial year 2024. This is a quick service restaurant whose clients are KFC, Pizza Hut, Costa Coffee. It is opening 300 new restaurants on an annual basis. IPO money reduced debt and strengthened the balance sheet.
APL Apollo Tubes
The brokerage has also chosen APL Apollo Tubes, whose stock closed last week at the level of Rs 1121. Sector, quality and valuation are green. It is the largest structural tube manufacturer in India. The market share is 55 percent. The company has 11 plants. The company is serious about its expansion. The company will benefit greatly from the merger of Apollo Tricoat. PAT ie Profit After Tax is estimated to be 33 percent by the financial year 2024.
(Disclaimer: The investment advice here is given by the brokerage house. These are not the views of Zee Business. Please consult your advisor before investing.)