Diwali 2024 stock picks: Diwali, the festival of lights, is important for Indian investors because of its cultural and financial traditions linked to wealth and prosperity. It marks the beginning of a new Samvat or the start of a new Hindu calendar year.
Many investors review their financial plans and portfolios and buy stocks or other asset classes every Diwali in the hope that their investments will bring them good luck and financial prosperity.
Indian stock exchanges, the BSE and the NSE, hold a special one-hour trading session known as Muhurat Trading, which traders and investors consider an auspicious time to start new investments.
Experts and brokerage firms suggest stocks to buy for the new Samvat, aiming to deliver strong returns in the upcoming year.
Brokerage firm Geojit Financial Services has picked 10 stocks across sectors that can give healthy returns in Samvat 2081. Let's take a look:
The order book for lithium-ion battery packs is incipient, and sales are expected to ramp up during FY25.
The first phase is expected to commence production by the second half of the current financial year (H2FY25).
Exide, through its subsidiary, signed a strategic MOU with Hyundai Motor Co. and Kia Corp. for the development, production and supply of Lithium iron phosphate batteries for EVs in India.
Overall, the demand scenario is showing signs of pickup due to stability in the two-wheeler volume. The brokerage firm expects the margin to show resilience at the current level and improve going forward.
Bata has increased investments in premiumisation, technology, marketing, and cost optimisation.
The premium mix improved to 40 per cent as of Q1FY25, aiding margin expansion going forward.
The company has a strong focus on adding new stores on an asset-light model.
Consumption demand is expected to improve due to an increase in disposable income.
Bata has the capability to revive its revenue growth trajectory, given its strong brand recall, distribution reach, and balance sheet.
Consumption is expected to improve due to good monsoons and the Government of India’s strong focus on rural initiatives and job creation.
The company’s focus on premiumisation will boost its margins. Consistent product launches and expanding distribution channels will propel the growth of the food business.
The company’s recent acquisitions will enable it to broaden its target market and support its growth efforts.
The company’s product diversification has strengthened its market position and revenue streams, justifying the higher valuation.
Stable order inflow in the high-tech and manufacturing vertical to support strong double-digit growth.
LTIMindtree’s key deals with US companies and renewed strategic collaboration with Amazon Web Service (AWS) to drive significant growth in generative AI, SAP, and data management.
An increase in US discretionary spending in the BFSI space, improved operational efficiency, and a reduction in subcontracting are likely to support margin expansion.
The brokerage firm expects automation in the transportation vertical to continue to witness strong double-digit growth through large deal wins from Europe and the rest of the world.
The US market is expected to recover owing to improved discretionary spending aiding healthcare and communication segments. Current order book from Europe, Japan, and emerging markets, as well as reducing subcontracts to support margin expansion.
Demand is expected to pick up in the upcoming festive season. Lower inflation, improvement in the real estate sector and the strong government of India's focus on housing are expected to support demand, given TTK’s entry into the economy segment with its Judge brand.
The recent increase in metal prices is expected to be passed on, given the upcoming festive season demand and strong pricing power of the company.
An extensive distribution network and diverse range of products will help TTK to maintain its market share.
Bajaj Finance’s diversified lending profile, coupled with its customer-centric model and focus on cross-selling, has helped it achieve an optimal balance of risk and profitability to deliver a sustainable business.
The company has strong AUM growth supported by a strong cross-sell/up-sell engine and robust digital infrastructure.
Bajaj Finance’s prominence at every conceivable point-of-sale, whether in brick-and-mortar establishments or through digital purchases via mobile applications and e-commerce platforms, augurs well for the company.
Mold-Tek's long-term outlook has improved significantly, led by the diversification of product offerings, such as the launch of high-margin products in pharma packaging.
Strong client additions in FMCG and pharma are expected to drive growth ahead.
Larger volumes and benign raw material prices are anticipated to expand margin. Mold-Tek’s adoption of cutting-edge technology, fully backward integration, robust balance sheet, and strong earnings outlook make it a compelling story.
The brokerage firm expects buoyancy in the Indian home décor category during this festival season, adding colour to Asian Paints' revenue.
A better monsoon season will support rural demand while urban demand remains resilient.
Input price inflation remains a near-term caution. However, an expectation of a revival in demand in H2FY25 will lighten up the volume and earnings growth.
Sun Pharma has successfully scaled up its speciality portfolio and continues to add promising molecules, further strengthening the business.
The brokerage firm believes this is a major source of growth. A diversified portfolio across products, geographies and therapy categories, along with an increasing share of speciality products, will drive stable revenue and margins.
A strong balance sheet with adequate cash reserves will allow Sun Pharma to continue acquiring assets, which will help strengthen the business.
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