Diwali Picks Stocks: 4 Stocks To Buy This Months For 21% Upside: Top Brokerage Suggests

The Indian stock markets recovered marginally today before Diwali. Sensex gained to 59,202.90 points, and Nifty gained to 17,563.95 points. Here, 4 stocks have been suggested to buy this month for upto 21% upside, as picked by Ashika.

Havells India - stock performances

The current market price of Havells India is Rs. 1,260/ share, and Ashika has estimated a target price for the stock at Rs. 1,520/share, for 20.6% potential return. The brokerage firm stated, "Havells is constantly working on improving its market share across its product segments through new product launches and increasing penetration in tier II and tier III cities. The company plans to spend Rs. 700-800 crore in FY23 to expand manufacturing capacities of air conditioner, washing machines and wire & cables. The company has spent average 4-5% of its sales on the advertisement and promotional activity."

Titan Company

The current market price of Titan Company is Rs. 2,635/ share, and Ashika has estimated a target price for the stock at Rs. 3,120/share, for 18.4% potential return. Ashika stated, "All the business segments, except eye-wear, posted strong double-digit growth in Q2FY23. Watches and wearables division saw highest‐ever quarterly revenue, achieved its highest ever quarterly revenue in Q2FY23 growing 20.0% YoY with healthy growth witnessed across all brands and products. Premiumisation is the theme in both Jewellery as well as watches segments. In eye wear, sales from Titan Eye+ stores grew in healthy double digits, sales decline in the trade and the distribution channels affected growth."

ITC

The current market price of ITC is Rs. 340/ share, and Ashika has estimated a target price for the stock at Rs. 395/share, for 16.2% potential return. According to Ashika, "ITC has a strong cash generation ability and has generated cumulative FCF of over Rs. 50 000 crore in the last five years. The company has invested large part of these cash flows in improving the growth prospects of non-cigarette FMCG and hotel businesses. Further, the strong cash flow is also utilised for a health dividend payout in FY22. At the current market price, the scrip is valued at P/E multiple of 21.7x on FY24E EPS."

HDFC Bank

The current market price of HDFC Bank is Rs. 1,444/ share, and Ashika has estimated a target price for the stock at Rs. 1,750/share, for 21.2% potential return. According to Ashika, "Merger with HDFC Ltd. is expected to further strengthen the bank's leadership position as growth run-way remains fairly large. Asset quality of the bank continues to remain pristine with improvement in GNPA/NNPA ratios by 5bps/2bps qoq to 1.23%/0.33%, respectively led by moderation in slippages in Q2FY23. Slippages stood at Rs. 5,700 crore. For Q2FY23, Retail advances grew 20% yoy/4.1% qoq; Corporates & Other Wholesale grew 27% yoy/9% qoq."

Disclaimer

The above stocks were picked from the brokerage report of Ashika. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.