Diwali 2024 Picks : SBI, Titan, ITC among 5 stock to buy by Religare Broking for Samvat 2081

Diwali'2024 : State Bank of India , Titan Company Ltd, ITC Ltd, Berger Paints India ltd, and Jyothy Labs Ltd are the stock picks by Religare Broking for Samvat 2081.

State Bank of India - Religare has recommended to buy State Bank of India stock at around ₹782 for a target price of ₹941 for an upside of 20.3%.

State Bank of India is well-positioned with a low loan-to-deposit ratio, allowing flexibility despite softer deposit growth. Its stable retail deposits and consistent 22-23% credit market share enable it to gain market share as competitors struggle. Additionally, technology investments have improved cost efficiency, reducing the cost-to-income ratio below 50% and enhancing long-term profitability. Based on these factors, Religare expects Net Interest Income and Net profit growth at a CAGR of 14.2% and 7% over FY24-26.

Titan Company Ltd - Religare has recommended buying Titan Stock at ₹3271 for a target price of ₹4270 indicating upside of 30.5%

Titan has a large presence in the Jewellery industry through its brands like Tanishq, Mia, Zoya and Caratlane and has an overall market share of ~8% further, downward revision of custom duty on gold imports is a positive in the long-term with short-term implications on profitability and gold on lease. Company is also an emerging lifestyle player with presence across segments like Watches, Eye-Care and Emerging business.

The company is focus on increasing its footprint by store expansion while taking efforts to improve margins. Its new business continues to see consistent growth. On the financial front, they have estimated its revenue and net profit to grow at 21.5% and 28.9% CAGR over FY24-26 respectively.

ITC Ltd - Religare has recommended buying ITC at close to ₹482 for a target price of ₹594 for an upside of 23.2%.

ITC Limited stands as a diversified leader in India, excelling in cigarettes, FMCG, hotels, agri-business, and paperboards. Its ITC Next strategy drives future growth through innovation, agile supply chains, and sustainability initiatives. By launching new products across various categories and enhancing distribution, ITC is fortifying its core businesses. With a strong portfolio of brands and an extensive market presence, ITC mitigates risks through diversification while leveraging brand equity to capture market share, ensuring sustained revenue and reinforcing its leadership position. On the financial front, Religare has estimated its revenue and net profit growth at 12.7% and 13.8% CAGR over FY24-26 respectively

The other two

Berger Paints India Ltd - Religare has recommended buying Berger at close to ₹537 for a target price of ₹655 for a target price of 22.0%

Berger Paints has demonstrated resilient performance, consistently surpassing industry growth rates and achieving the highest market share among listed competitors. Further, management remains positive on the growth prospects which would be driven by double digit volume growth for decorative segment, steady demand, innovations and expansion in distribution along with catch up in rural areas will help in aiding growth. On the financial front, Religare estimates its revenue and earnings before interest tax Depreciation and amortisation (Ebitda) to grow at 13% and 15.9% CAGR over FY24-26.

Jyothy Labs Ltd- Religare has recommended buying Jyothy Labs Ltd at around ₹487 for a target price of ₹624 for a target price of 28.1%

Religare believes Jyothy labs has come a long way by innovating products across categories, investing on advertisements & promotional activities and gaining market share. Going ahead, the management aims for volume led growth and at the same time maintain margins. Additionally, they want to invest behind brand building initiatives, manufacturing and strengthen distribution reach in rural areas as well as grow digitally. Religare is optimistic on the growth prospect of the company and estimate its Revenue and Ebitda to grow at 15.7% and 17.3% CAGR over FY24-26 respectively

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.