Motilal Oswal expects the sectors such as Financials, Consumption, Industrials, Technology and Healthcare to do well in Samvat 2081
Samvat 2081: During the Samvat 2080, Indian equities touched new highs with the benchmark NSE Nifty 50 index surpassing the milestone of 26,000 to hit a new all-time high of 26,277 in September 2024. Broader markets also recorded significant rally with Nifty Midcap 100 and Smallcap 100 rallying 38 per cent and 37 per cent, respectively.
“This remarkable journey can be attributed to healthy corporate earnings, political continuity, surge in domestic flows and resilient macro landscape that has weathered global storms. Moderation in inflation and expectation of peaking out of global interest rates in the last few months too supported equities,” Motilal Oswal Financial Services said in its note to investors.
The brokerage firm expects the sectors linked to domestic structural and cyclical themes to do well. It remains positive on sectors such as Financials, Consumption, Industrials, Technology and Healthcare.
The brokerage firm has shared 10 stocks to buy this Diwali. Take a look:
The private sector bank reported steady Q2 FY25 results, unlike many of its large peers with 15 per cent year-on-year (YoY) growth in net earnings.
“A stable mix of high-yielding portfolio and ongoing growth in Business Banking, SME, and secured retail segments are driving broad-based growth, helping the bank maintain healthy business diversification,” Motilal Oswal said.
The company revised its FY25 growth guidance to 3.5-5 per cent YoY, supported by strong deal wins and its leading position in data/SAP modernization.
“Its investments in next-gen platforms position it well for the GenAIrevolution and future recovery in client spending,” the brokerage firm said.
The multinational conglomerate is eyeing opportunities in new areas such as offshore wind projects, where it has already made its foray with an order win of USD 100 million.
It is also looking for opportunities in green hydrogen and nuclear projects construction. LT’s RoE stands at 14.7 per cent and it has maintained its long-term target of 18 per cent RoE.
“Titan continues to outperform other brands due to its strong competitive positioning. Tanishq's unique brand recall and business moat provide a solid edge,” Motilal Oswal said in its note to investors.
In addition, the company plans to open 40-50 Tanishq stores and 70-80 Mia/Caratlane stores, along with transforming 20-30 stores into larger formats.
Zomato's vision of creating strong brands across food delivery, grocery, and going out could make it a formidable platform that could command a high wallet share from urban consumers, according to Motilal Oswal.
“With Blinkit’s growth, Zomatois positioned for robust long-term growth. Our estimates imply FY24-27 revenue CAGR of 55 per cent,” the brokerage firm said.
The leading Indian pharmaceutical company, focuses on APIs and formulations and expects strong earnings growth from FY24-27, supported by a 14 per cent CAGR in the domestic formulation market and a revival of its US generics business.
“Key drivers include better USFDA compliance, synergies from the Unichem acquisition, and improved operational efficiency,” Motilal Oswal said.
Angel One reported a 39 per cent YoY increase in PAT to Rs 4.2 billion, driven by a 45 per cent rise in order volume and effective cost management, maintaining a CI ratio of 50.1 per cent.
“The company has successfully diversified into credit products and expanded its wealth management services, enhancing its growth potential,” the brokerage firm said.
Five Star is well-positioned for growth, with projected 35 per cent asset under management (AUM) growth for FY25 and a lending rate cut enhancing its competitive edge.
The company is expected to maintain premium valuations due to stable asset quality and strong return metrics, supported by management's focus on operational efficiency and digital collections for sustained profitability and growth, according to Motilal Oswal.
“Amber Enterprises is well-positioned for strong growth across multiple segments, driven by a robust RAC market and expanding opportunities in electronics,” the brokerage firm said.
The company’s strategic focus on diversifying its client base in consumer durables and enhancing its electronics division is set to yield significant revenue increases, projected at a 21 per cent CAGR over FY24-FY27.
Zen Technologies stands out in the anti-drone market with over 40 indigenously developed products, including training systems & counter-drone solutions. The company benefits from backward integration & offers comprehensive services such as after-sales support, warranty, & AMC.
“With 150+ filed patents and nearly 70 granted, ZEN is well-equipped to innovate and capture market opportunities,” Motilal Oswal said.