Diwali 2024 picks: StoxBox recommends Reliance Industries Ltd, BEML, Advanced Enzyme Technologies Ltd, Ami Organics Ltd, and TARC Ltd as top stocks to buy for Samvat 2081 for up to 20% upside.
StoxBox has identified promising stock picks to enhance investment portfolios during Diwali 2024. These stocks have strong fundamentals and are spread across various sectors, from biotechnology to real estate.
1) Advanced Enzyme Technologies Ltd - StoxBox recommends buying Advanced Enzyme Technologies Ltd (AETL) in the range of ₹444-450, targeting ₹533 by next Diwali, which suggests a potential upside of 19%.
The global enzyme and probiotic markets, valued at $11.3 billion and $70 billion, are expected to grow at CAGRs of 6.0% and 7.75%, respectively. AETL's diverse product portfolio, strong R&D, and strategic expansion position it well to capitalise on these growth trends.
2) Ami Organics Ltd - StoxBox advocates buying Ami Organics Ltd at ₹1,610-1,620, targeting ₹1,897 by next Diwali.
The company anticipates 25% growth this year, fueled by strong order wins and a 50-90% market share in key chronic therapies. Despite supply challenges from China, its core products remain stable. A partnership with Fermion for the prostate cancer drug Nubeqa could generate ₹5-7 billion in revenue, while the acquisition of Baba Fine Chemicals aids expansion into semiconductor chemicals. With solid exports (56% of FY24 revenue) and new product launches, Ami is poised for growth.
3) BEML Ltd - StoxBox urges buying BEML Ltd at ₹3,770-3,800, targeting ₹4,546 by next Diwali for a 20% upside.
As a Mini Ratna under the Ministry of Defence, BEML is crucial in the defence, rail, metro, mining, and construction sectors. With a strong order book of ₹11,872 crore in FY24, boosted by projects like Vande Bharat and Bangalore Metro, the company is also expanding in defence with initiatives like Pinaka missile launchers. Strategic restructuring, capacity expansion, and increased R&D investments position BEML for long-term growth in its core segments.
4) Reliance Industries Ltd - StoxBox rates Reliance Industries Ltd. (RIL) as a strong buy, with a buying range of ₹1,330-1,345 and a target price of ₹1,568 by next Diwali.
Despite a likely 10% earnings drop in 2025, RIL is expected to recover through retail growth, potential telecom rate hikes, and petrochemical expansion. The company plans to invest ₹75,000 crore in solar and battery storage, aiming to match its O2C EBITDA of ₹62,393 crores in 5-7 years. Additionally, RIL's JioBrain initiative seeks to enhance AI services and triple Jio's revenue and EBITDA in 3-4 years, leveraging its 130 million 5G users.
5) TARC Ltd - StoxBox Advises buying TARC in the range of ₹222-227 for a target price of ₹260 until next Diwali.
TARC is positioned for significant growth, benefiting from a strong land bank, a diversified portfolio, and superior execution. The Indian real estate sector is witnessing rising demand for luxury and mid-income housing, evidenced by a decline in unsold stock in Delhi. TARC anticipates improved cash flows from its ongoing projects and a robust pipeline valued at over ₹7,700 crore. The company aims for ₹5,000 crore in presales for FY25, with a clear strategy for debt-free growth by FY26.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
