Kotak Securities Recommends Top Stock Picks for Diwali 2023

As Diwali approaches, analysts at Kotak Securities have identified some promising stock investment opportunities for the festive season in 2023. Here’s a closer look at their top recommendations:

1. Reliance Industries (RIL):
   • Kotak Securities gives a ‘buy’ rating with a target price of Rs 2725 (current market price: Rs 2288).
   • The focus is shifting towards monetizing 5G technology with the impending rollout of R-Jio’s 5G.
   • Reliance continues its expansion in the retail sector and expects growth in KG-D6 production.
   • The reported net debt has decreased by approximately Rs. 8,900 crore.
     
2. Canara Bank (CBK):
   • Kotak Securities issues a ‘buy’ rating with a target price of Rs 425 (current market price: Rs 384).
   • Canara Bank has shown remarkable results with a 43 percent YoY growth in earnings.
   • The bank has improved its asset quality and achieved a 20 percent YoY increase in net interest income.
     
3. Cipla Ltd.:
   • Kotak Securities reiterates an ‘add’ rating with a target price of Rs 1320 (current market price: Rs 1200).
   • Cipla’s strong performance in Q2FY24 prompts the company to revise its EBITDA margin guidance.
   • The potential divestment of shares by the promoter group is of interest to investors.
     
4. Cyient Ltd. (CYL):
   • Kotak Securities maintains a ‘buy’ rating with a target price of Rs 2000 (current market price: Rs 1589).
   • Cyient focuses on high-growth services and diversification across industries and geographies.
   • The company expects sustained demand in aerospace, sustainability, and automotive sectors.
     
5. Godrej Consumer Products Ltd. (GCPL):
   • Kotak Securities maintains an ‘add’ rating with a target price of Rs 1135 (current market price: Rs 992).
   • GCPL exhibited commendable performance in Q1FY24, with double-digit volume growth.
   • The company plans to invest Rs 900 crore in capital expenditure to increase its capacity.
     
6. Macrotech Developers Ltd. (Lodha):
   • Kotak Securities upholds an ‘add’ rating with a target price of Rs 840 (current market price: Rs 788).
   • Lodha is positioned for market share expansion with its diverse geographical presence.
   • The company aims for a 20 percent compound annual growth rate in pre-sales.
     
7. PCBL:
   • Kotak Securities reaffirms its ‘buy’ rating with a target price of Rs 260 (current market price: Rs 199).
   • PCBL’s Q2FY24 performance meets expectations, with strong volumes and innovation.
   • The company foresees a 12-13 percent volume growth CAGR over the next 5-6 years.

These stocks represent attractive investment opportunities for the Diwali season, according to Kotak Securities’ analysts.