InvestorQ : Which are the best scrips to buy on Muhurat trading?
Dawn Cherian made post

Which are the best scrips to buy on Muhurat trading?

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Roshni Hegde answered.
3 years ago
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After the announcement on corporate tax cuts and brokerages, market has been recovering sharply from the recent lows of approx. 10,700. To mark in terms of the overall performance of the markets, it remains positive at the range of nearly 11,200-11,000 levels on the downside.
Don't just enjoy Diwali in a customary manner but pick the best Diwali stocks, well the most asked question today is, Which stock would be preferable in the current volatile market?
I have some cherry-picked 5 stocks to buy on this auspicious occasion of Diwali. Below recommendations are based on my market research, fundamental analysis, company's management outlook and growth potential of the company.

1) Reliance Industries (RIL)-
Considering the various market factors, it is estimated RIL to re-rate on account of its overall de-leveraging drive (~Rs1.1 lakh cr via fiber/tower asset sale, 20% O&C sale to Armco and roping investor for consumer business) coupled with strong traction in Retail and Telecom (Jio) business. Further favorable responses can be expected in the company's business of diesel & petrol crack, development in Jio’s EBITDA & cash flows that may cause advancement of EV for the business.
Current market price of the stocks is Rs.1392, Target price is Rs. 1594 and expected upside is 15%.

Source- 5 Paisa Research

2) ICICI Bank-
Currently the primary focus of ICICI Bank is working on improving margins, lower credit cost and initiatives to bring down operating costs. Bank's target is to achieve 13.4% RoE in FY21E from 3.2% in FY19.
As per bank's source, it can be expected that the Bank is improving the liability (loan amount payment) that eventually improves PCR clearly denotes moderation in credit cost going forward.
ICICI Bank can be expected to grow having strong liability franchise, superior customer outreach across business segments and a healthy capital position.
The current market price of the stock is Rs.455 The target price is Rs.505 and expected upside is 12%.


Source- 5 Paisa Research

3) Larsen Turbo - L&T
L&T records to have balanced with leverage investment cycle. Government may push on infrastructure and widening base of mid-size orders. Further, monetisation of non-core assets will help release capital and improve return ratios. As per estimation, the company's revenue may reach CAGR of 19% over FY19- 21E with a flat EBITDA margin. PAT CAGR is estimated at 17% over the same period.
L&T's strong order book of Rs2,94,014cr (2.8x TTM sales) at Q1FY20-end shows a positive growth in the next 2 years.
The current market price of the stock is Rs.1430 The target price is Rs.1875 and expected upside is 31% 


Source- 5 Paisa Research

4) Gujarat Gas-
Gujarat Gas is expected to have strong earnings over FY19-21. industrial volumes is estimated to advance by 35% CAGR over FY19-21E. CNG (22% of overall FY19 volumes) and Domestic PNG (8%) are expected to post ~12% volume CAGR over the same period.
The current market price of the stocks is Rs.178, Target price is Rs. 229 and expected upside is 28%.

Source- 5 Paisa Research

5) Atul Limited-
Having diversified business portfolio and strong chemistry skills, Atul Limited is expected to have good growth in volumes led by crop protection, better mix and de-bottlenecking are expected to drive 12.6% revenue CAGR over FY19-21E.
Primary two factors of operational efficiencies (incl. performance of JVs and Subsidiaries) and better product mix are expected to drive earnings CAGR of 22.6% over FY19-21E.
As per the records, Atul limited is debt free company and generates strong operating cash flows, which will be utilized for its current capex plan worth Rs412cr (with a revenue potential of ~Rs850cr). The stock trading at 19.1x FY21E EPS.
The current market price of the stock is Rs.4225 The target price is Rs.4791 and expected upside is 13%

Source- 5 Paisa Research

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