New Delhi: As we enter Vikram Samvat 2081 after Diwali, markets will be keeping a close eye on several major macro events that will take place this year. Starting from the US election, further interest rate cuts to support demand, rising corporate profits, rising prices of precious metals, and geopolitical changes in the world due to wars – will all affect investors’ portfolios.
“There is no doubt that the coming year will set a new benchmark in the investment space given India’s development initiatives, efforts to become a global manufacturing hub, strong domestic demand and the growing trend of domestic savings flowing into the stock market,” SAMCO Securities said.
Diwali Stock Picks: Check out 10 stocks recommended by SAMCO Securities
Muhurat Pick #1: HDFC Bank Ltd
HDFC Bank, India’s largest private bank, maintained a strong 10-year profit compound annual growth rate of 21.74%, with an operating net interest margin of 3.5% and a net non-performing asset ratio of 0.3%. Advances and deposits grew steadily. The stock currently trades below its 10-year average price-to-book ratio and has a price-to-earnings ratio of 19, providing a good risk-reward profile and substantial downside cushion.
Muhurat Choice #2: Vindhya Telelinks Ltd
Vindhya Telelinks Limited, a major cable manufacturing joint venture between Universal Cables Limited and Madhya Pradesh State Industrial Development Corporation, has shown strong growth over the past 5 years with revenue almost doubling, CA The growth rate is 14.3%. The company has made significant investments in Birla Cable Ltd, Birla Corporation Ltd and Universal Cable Ltd, totaling Rs 3,618 crore, exceeding its market capitalization of Rs 2,545 crore. This solid investment base highlights Vindhya Telelinks’ strong fundamentals and financial potential.
Muhurat Choice #3: Ramco Industries Ltd
Ramco Industries Ltd. is a leading construction materials manufacturer in South Asia, specializing in fiber cement boards, calcium silicate boards, cotton yarn and wind energy. Over the past decade, sales have grown at a CAGR of 7%, while the share price has grown at a CAGR of 14%. Ramco Industries is known for its financial stability, with a debt-to-equity ratio of just 0.07, consistent dividend payments since fiscal 2017, and a current yield of 0.31%. The stock’s attractive price-to-book ratio of 0.5 provides a solid margin of safety, underscoring its investment appeal.
Muhurat Choice #4: Piramal Pharma Ltd
In the United States, the Biosecurity Act was passed by the House of Representatives on September 9, 2024 and is currently awaiting approval in the Senate. Once enacted, the Biosafety Act would prohibit U.S. federal agencies from contracting or purchasing services and equipment from “biotech companies of concern,” which includes several Chinese pharmaceutical companies. This legislation could create opportunities for Indian pharmaceutical companies, especially Piramal Pharma, which has a significant presence in the US market, to increase market share and improve revenues and profits.
Muhurat Pick #5: Cholamanandalam Financial Holdings Ltd
The company reported strong financial results in fiscal 2024 and plans to further improve them by building a strong franchise focused on growth and profitability.
Given its reasonable valuation, it shows compelling growth potential. In addition, approximately 40% of the company’s shares are held by DIIs and FIIs, further increasing confidence in the company’s optimistic prospects.
Muhurat Choice #6: Deepak Fertilizers and Petrochemicals Ltd.
The stock has been in a strong uptrend since June 2024 and has remained above its 50-day moving average except for a few days last week. The stock has also shown strong momentum, beating the Nifty 500 index’s returns last year.
Despite experiencing a price and volume breakout, the stock trades at only about 2.65 times its book value, making it an attractive investment option.
Muhurat Pick #7: PG Electroplast Ltd
PG Electroplast is a diversified Indian electronics manufacturing services provider in the capital-intensive sector. The company’s equity-to-debt ratio is 0.42 and its P/E ratio is 83, which is lower than the industry’s P/E ratio of 106 times but higher than its 5-year median P/E ratio. 50 times. In addition, comprehensive revenue and profit after tax in the first quarter of FY25 hit annual records, with year-on-year growth of 95% and 148% respectively.
Muhurat Choice #8: Durable Systems Ltd.
Persisted Systems, an AI-led, platform-driven digital engineering and enterprise modernization partner, is virtually a debt-free company and trades at a P/E ratio of 72x, well above its industry P/E ratio of 34x and P/E ratio of 5-5x .
Muhurat Pick #9: Hikal Ltd
Hikal Limited, an integrated life sciences supplier, expects market conditions to stabilize in the third or fourth quarter of fiscal 2025, despite facing challenges from demand fluctuations and competition. The CDMO segment continues to perform strongly, with high margins and increased customer interest. Deliveries for the stock are increasing, showing investor optimism.
Muhurat Pick #10: Indian Pipeline Investments Ltd.
The weekly chart shows a consistent pattern of higher highs and higher lows, indicating a continuing uptrend. The stock is trading above the 20-day, 50-day, and 200-day moving averages on the daily time frame. Additionally, higher volumes due to higher prices further confirm this positive outlook.
(Disclaimer: The article is for informational purposes only and does not constitute any financial advice. Stock recommendations provided in the article are those of individual analysts or brokerages/companies and do not reflect the views of Zee News. Investors must consult before taking any investment decision , ask a certified professional expert.