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Interested in buying the right stocks before Diwali? As the festival of lights, Diwali, approaches, many investors are eyeing strategic investments that align with the season's positivity. Diwali is widely believed to be an auspicious time for financial decisions, and several brokerage houses have shared their top stock recommendations for 2024.
These recommendations cover various industries, including FMCG, telecom, finance, and real estate, offering strong growth potential amidst market fluctuations. Below is a detailed list of top stock picks from leading firms like Sharekhan, Angel One, and others.
The stocks of companies that have been included in Sharekhan’s Select 15 list were chosen based on factors like growth rate, performance consistency, and market positioning. Here’s a closer look at some of the key picks:
Dabur India (FMCG, CMP: Rs. 571):
Dabur targets mid-teen earnings growth by increasing market share through expanded distribution and the launch of new products.
Dee Development Engineers (Engineering, CMP: Rs. 251):
Government infrastructure plans are expected to drive strong future orders for Dee Development Engineers.
HUDCO (Housing, CMP: Rs. 215):
As a leading player in affordable housing, HUDCO benefits from strong government backing, making it a desirable stock in the real estate sector.
Larsen & Toubro (L&T) (Engineering, CMP: Rs. 3,576):
L&T's steady order inflow continues to boost its revenue and strengthen its market position.
State Bank of India (SBI) (Banking, CMP: Rs. 597):
With overall credit expansion and an attractive price-to-book (P/B) ratio of 2.3x, SBI stands out as a compelling choice in the banking sector.
Besides Sharekhan, other broking houses have also come up with Diwali gifting lists of their preferred stocks for 2024.
Hindalco Industries (26%)
India Glycols (23%)
Newgen Software Tech (21%)
Power Mech Projects (23%)
Triveni Turbine (37%)
Bank of India
Hindustan Aeronautics (HAL)
Ircon International (IRCON)
Life Insurance Corporation of India
Narayana Hrudayalaya
Asian Paints
HDFC Bank
Infosys
Reliance Industries
Tata Motors
Anand Rathi's recommendations include companies with significant growth potential, such as:
BEML Ltd (42.1%): It was believed to experience robust sales growth, mainly attributed to the defense industry and infrastructure.
Garden Reach Shipbuilders & Engineers Ltd (52.3%): Ideally positioned to fully benefit from large government defense contracts.
Hindustan Zinc Ltd (50.0%): Hindustan Zinc is among the most dynamic companies in the mining industry and is expected to achieve high growth as prices go up.
Angel One’s top stocks for 2024 include a mix of blue-chip and mid-cap companies:
Blue Star (26%): Residential air conditioning is the growth vehicle currently sustaining steady progress.
Colgate Palmolive (32%): Thoroughly, the position of Colgate relating to premium oral care products make the company capable of going further.
Dixon Technologies (24%): Appreciating from the higher demand of consumer electronics.
Bank of India Ltd (25%)
JK Lakshmi Cement Ltd (15%)
Jyothy Labs Ltd (13%)
L&T Finance Ltd (30%)
National Aluminium Company Ltd (NALCO) (23%)
Motilal Oswal has provided a strong lineup of stocks for Diwali 2024:
Adani Enterprises
Asian Paints
Reliance Industries (RIL)
HDFC Bank
UltraTech Cement
Market Ez and Sector Review
Several sectors are showing strong growth potential, making this Diwali a great time to consider strategic investments:
Some of the strategies followed by the various companies, which are currently in this business, are market development and product innovation, Dabur India being an example. It is a stable sector which I believe has especially re-emerging rural markets.
Players such as L&T and Dee Development Engineers are well positioned to ride on the current government’s agenda of infrastructure development for sustainable future revenues.
With affordable housing initiatives and a large project pipeline, HUDCO and Sunteck Realty are some of the stocks well-placed in the real estate sector.
Bharti Airtel stands to gain from the rising 5G deployment, while Mastek has been delivering strong results in the digital transformation segment.
Many sectors of the Indian economy including FMCG, Telecom, Finance, Real estate and so on have good growth prospects this Diwali. The opportunities remain bright regardless of the focus on Dabur India or SBI or new entrants like BEML Ltd.
However, while these particular stock picks have growth projections, it is advisable for any investor to seek professional investment advice and invest based on individual needs and total amount of risk willingness. Wishing you good luck in your investments, and hope this Diwali brings as much prosperity to your stock market portfolio!
