Top Diwali 2024 Stock Picks: Ashika Group Recommends 7 Stocks with Up to 33% Gains – ONGC, Nazara, Eris Among Highlights

Ashika Group, a brokerage firm, has recommended seven stocks for Diwali 2024 that could offer up to a 33% return for investors.

ONGC: Ashika Group sees ONGC as having a strong advantage due to its large oil reserves, built up over 60 years. In FY24, ONGC made nine new discoveries and added five more in the first quarter of FY25. The company has managed to keep its Reserve Replacement Ratio (RRR) above 1 for 18 consecutive years. ONGC’s capital spending increased by 14% to ₹34,551 crore in FY24, and it plans to spend ₹32,000-33,000 crore annually in FY25 and FY26. ONGC expects its oil production to grow by 10-15% with projects like KG Basin and Mumbai High set to boost output. Over the next three years, ONGC projects a 12% growth in crude oil production and 27% in natural gas, largely from its KG 98/2 project. A tax exemption on the KG 98/2 project and premium gas prices should help improve ONGC’s earnings.

Kaynes Technology: Established in 2008, Kaynes Technology is a leading company in electronics manufacturing, focusing on areas like automotive, aerospace, and medical devices. The company has a ₹5,040 crore order book, expecting to complete 60-70% of orders within the year. It has signed four MoUs in its OSAT business and anticipates receiving major export orders in the medical sector, particularly from the US and Europe. With new initiatives and strong partnerships, Ashika Group expects Kaynes to grow steadily.

Eris Lifesciences: Eris is a domestic pharmaceutical company known for its branded formulations. It recently acquired Swiss Parenterals, which reported ₹280 crore in revenue with a 37% EBITDA margin for FY23. Eris has grown significantly in the Indian Pharmaceutical Market (IPM), ranking among the top 20 companies. For FY25, the company aims for ₹3,000 crore in revenue, a 49% increase, and an EBITDA margin of 35%. It also plans to reduce its debt over the next 18 months, which should strengthen its balance sheet.

ISGEC: ISGEC, a company involved in manufacturing machinery and equipment, is set for growth, driven by increased government spending and private sector investments. As of Q1 FY25, ISGEC’s order book stands at ₹7,741 crore. The company is focusing on short-duration projects, which are expected to improve margins. With double-digit revenue growth projected over the next two years, ISGEC aims to increase its EBITDA margin from the current 8% to 11-12% over the next few years.

Nazara Technologies: A key player in the e-sports industry, Nazara Technologies has made several strategic acquisitions, including PokerBaazi, India’s largest online poker platform. The company also owns Kiddopia, a top app for kids in the US. Ashika Group expects these acquisitions to significantly boost revenue and profit for Nazara. The company’s growth prospects are further enhanced by partnerships like ComicCon India.

EMS: EMS specialises in constructing substations and providing engineering services for building and road projects. Its order book as of Q1 FY25 stands at ₹1,800 crore, with a strong pipeline of ₹4,000 crore in upcoming bids. EMS expects its revenue to grow by 30-35% for FY25, particularly due to opportunities in the sewerage sector. The company also plans to utilise its capital efficiently, reducing debt and improving profit margins.

Axiscades Technologies: Despite a slowdown in the global engineering and R&D industry, Axiscades has maintained steady growth due to its focus on aerospace and defence, which make up about 60% of its revenue. The company has secured deals in these sectors and has reduced finance costs by repaying ₹110 crore in borrowings. With a strong order book and new opportunities in defence programs, Ashika Group expects Axiscades to continue growing in the coming years.