As Diwali 2024 approaches, Indian stock markets have experienced volatility due to uncertain global conditions, even though domestic economic indicators remain strong. The benchmark Nifty 50 has increased by over 25% in the last year, but analysts predict continued market fluctuations. JM Financial has released its list of stock picks for the festive season, highlighting ten stocks to consider buying for the upcoming Samvat 2081. The recommended stocks are:
1. Reliance Industries | Buy | Target Price: ₹3,500
Reliance has underperformed in 2024, but JM Financial expects a turnaround due to faster telecom tariff hikes, a recovery in its retail business, and positive developments in new energy. They forecast a 15% annual growth in profit from FY24 to FY27 and have set a target price of ₹3,500.
2. Power Grid Corporation of India | Buy | Target Price: ₹383
With a reasonable valuation and a strong dividend yield of about 4%, JM Financial sees potential in Power Grid as transmission capex recovers. They project a return on equity of approximately 18% from FY24 to FY26, valuing the stock at ₹383.
3. Bajaj Finance | Buy | Target Price: ₹8,552
Shares of Bajaj Finance are currently priced reasonably, giving room for upward re-rating due to strong growth prospects and healthy returns on equity. The target price is set at ₹8,552.
4. ICICI Lombard General Insurance Co | Buy | Target Price: ₹2,450
Despite premium valuations, JM Financial believes ICICI Lombard can achieve consistent growth of over 17%. They advise buying during any seasonal weakness and have a target price of ₹2,450.
5. Jindal Steel & Power | Buy | Target Price: ₹1,150
With a focus on increasing profit margins, Jindal Steel is expected to achieve significant earnings by FY26. JM Financial has set a target price of ₹1,150, valuing it at 8 times FY26 earnings.
6. National Aluminium Company | Buy | Target Price: ₹264
NALCO’s EBITDA is projected to rise significantly due to increased alumina prices and coal mining benefits. The stock is considered attractive at a valuation of 6.8 times FY26 earnings, with a target price of ₹264.
7. Gravita India | Buy | Target Price: ₹3,068
Regulatory support and a focus on expanding non-lead business are expected to drive strong earnings growth. JM Financial has raised the target price to ₹3,068 for Gravita India.
8. Macrotech Developers | Buy | Target Price: ₹1,480
The company is expected to generate substantial cash flows over the next three years, supporting growth. JM Financial has set a target price of ₹1,480 for Macrotech.
9. Olectra Greentech | Buy | Target Price: ₹2,200
Olectra is projected to see robust returns and significant volume growth. JM Financial believes the stock should reach a target price of ₹2,200.
10. Ashoka Buildcon | Buy | Target Price: ₹290
The company is expected to achieve strong profit growth over the next two years. JM Financial has set a target price of ₹290 for Ashoka Buildcon.
These stock picks reflect JM Financial’s insights into promising investments for Diwali 2024, focusing on companies with strong fundamentals and growth potential.
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