Samvat 2081: Market has been on a jittery ride this month. With benchmark indices losing more than 5 per cent in October alone, investor sentiment has largely been cautious. However, DIIs (domestic institutional investors) have remained the ultimate saviours in the market and as Diwali makes its way this week, investors are keenly watching out for the Muhurat trading session.
The special 1-hour trading session will be taking place on November 1 (Friday), starting from 6:00 pm- 7:00 pm.
Historically, the Samvat week has mostly been positive for the market, with frontline indices— BSE Sensex and NSE Nifty— reaching fresh highs. However, this time, many factors are at play. From massive FII (Foreign institutional investors) outflows to the uncertain sentiment owing to the US election presidential election, a lot seems to create a blurry path for the D-street. Here are the top 5 stock picks by Axis Securities for this Diwali's Muhurat trading session.
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1. Gravita India Ltd.
The company is one of the leading players in the global recycling industry and already has the tag of multibagger stock on the D Street. On year-to-date, the company’s shares have delivered over 88 per cent returns on the National Stock Exchange.
"With planned capacity expansions and diversification into newer verticals, the company is positioned to benefit from favourable industry dynamics and rising demand for sustainable solutions," the brokerage firm stated in its report. The company is also planning to expand into the European market. The brokerage firm has set a target price of Rs 2,174, implying an upside of 38 per cent.
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2. Arvind Smartspaces
The real estate company recorded a sales CAGR (compound annual growth rate) of 5.4 per cent from FY19 to FY24. It currently holds an unsold inventory of 51 million square feet across completed, ongoing and planned projects, which makes up about 69 per cent of its total portfolio. This high inventory signals a strong potential for launches and bookings in the coming year.
On year-to-date basis, the company’s shares have delivered a whopping return of 99 per cent on NSE. The company is also planning to expand in new markets like Pune and the Mumbai Metropolitan Region. The brokerage firm has set a target price of Rs 1,085 for the company.
3. Inox Wind
The wind turbine manufacturer continues to witness strong growth in its bottom-line. In Q2FY25, the company reported a profit of Rs 90 crore, marking a significant turnaround from Rs 27 crore loss recorded in the corresponding period of previous year. The multibagger stock has delivered a return of more than 280 per cent over the past year.
As the country’s power demand continues to experience an uptick, India's renewable energy capacity is expected to reach 500 GW by 2030, which includes an additional 75 GW of wind capacity. This creates a favorable position for Inox Wind. With a strong order book, the brokerage firm has set the target price at Rs 270.
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4. KPIT Technology
KPIT technology provides engineering research and development (ER&D) services to automotive companies. The company collaborates with more than 12 of the world’s top 20 automotive OEMs (Original equipment manufacturers), which provide software and technology services across multiple segments.
While the shares of the company have largely remained in the negative territory so far this year, the brokerage stated that technological upgrades in the automotive industry can create multiple growth opportunities in the sector. "We recommend a buy rating on the stock with a target price of Rs 2,150 per share, implying an upside potential is 27per cent from the current market price," Axis Securities said in its report.
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5. Lupin
On annual basis, the shares of the pharmaceutical company have generated returns of over 93 per cent on the NSE. In Q1FY25, the Mumbai-based company reported a 77.2 per cent year-on-year surge in profits which stood at Rs 801 crore.
From an industry perspective, the pharmaceutical sector is expected to perform well in the mid to long term, driven by growth in both the US and Indian markets. On year-to-date basis, the shares of the company have delivered a return of over 68 per cent. The brokerage firm has issued a "BUY" rating for the stock, setting a target price of Rs 2,600 per share.
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