Diwali Muhurat Trade 2022: Domestic exchanges BSE and the National Stock Exchange will conduct their usual one-hour special ‘Muhurat’ trading between 6:15 PM and 7:15 PM on October 24, 2022. The block deal session will be held from 5:45 PM to 6:00 PM. The pre-open session will take place between 6:00 PM and 6:08 PM.
This year’s Diwali Muhurat trading session also marks the beginning of Samvat 2079 according to the Hindu calendar year beginning on Diwali. The trade in Muhurat is believed to bring prosperity and wealth throughout the year.
Shares to buy for Samvat 2079
In a note, Axis Securities said: “Since last Diwali, the Indian market has outperformed other global and emerging markets by a remarkable margin, thanks to the country’s robust economic outlook, despite multiple headwinds such as volatile macroeconomic developments, faster regime changes Since Diwali, our benchmark index Nifty has fallen just 5 percent (to October 11, ’22), while the S&P500 and the emerging markets index have fallen as much as 22 percent and 29 percent over the same period.”
The new Samvat 2079 looks much brighter and more promising, according to Axis Securities. It believes that the Indian economy is in a good spot of growth and remains the country of stability against the backdrop of a volatile global economy.
IDFC First Bank
Target Price: Rs 70| Upward 27 percent
“The stock is poised for a revaluation given the bank’s continued improvement in asset quality, its strategy to improve operating performance with expected operating leverage and superior return ratios over FY23-25.”
Westlife Development
Target Price: Rs 870| Upward: 21 percent
“The company is well positioned to take advantage of the growing QSR opportunity. The company’s EBITDA margin will be in the 14 percent-15 percent range, driven by improved product mix, operational leverage and cost rationalization, and economies of scale by operating three categories in one store without major capital expenditures.”
ITC
Target Price: Rs 380| Upward: 15 percent
“The stock is currently trading at 18x FY25E EPS, a dividend yield of 4-5 percent provides a huge margin of safety compared to its competitors. In addition, the recovery in the cigarette business and the rebound in Agri, Hotels and Paperboard in the near term makes ITC a better player in the whole FMCG package where valuations are high.”
Sundaram Finance
Target Price: Rs 2,490 | Upward: 13 percent
“Sundaram Finance’s well-diversified mix of secured loans with strong underwriting practices and comfortable capital position (CAR +24.1 percent) will support operating performance in the current broad recovery in the CV space.”
Ashok Leyland
Target Price: Rs 175 | Upward: 17 percent
“The company is well positioned to benefit from the cyclical recovery, especially in higher tonnage buses and trucks, where it has a larger market share. The recovery in demand and gradual price increases are expected to improve in the longer term. Pressure on RM costs is likely to ease, leading to margin improvement in the coming quarters.”
Aptus Value Housing Finance India
Target Price: Rs 350| Upward: 15 percent
“Aptus remains well-positioned in the fast-growing market that is less competitive due to the expertise needed to cater to the underserved/underserved independent customer base. While NIM compression is imminent in the medium term, stable Opex, and gradually improving credit costs with decreasing asset quality stress, will support strong RoAs, justifying premium valuations.
Indian hotel company
Target Price: Rs 375| Upward: 13 percent
“The Indian hotel industry is expected to report ARR growth and occupancy improvement of 400 basis points over the period CY22-24. Therefore, Axis Securities analysts expect a significant improvement in the company’s realizations and occupations, which in turn would be further enhanced by the strong operating leverage it enjoys among its peers.”
NOCIL
Target Price: Rs 300| Upward: 16 percent
“NOCIL is the main beneficiary of the China alternative theme in the rubber chemicals niche market in India. The company is witnessing a strong tailwind in demand and easing pressure from commodities. In addition, the operating leverage will strengthen the margin profile in the coming quarters.”
Polycab India
Target Price: Rs 2860 | Upward: 11 percent
“Polycab has maintained a leading position in the organized C&W segment with a market share of more than 24 percent. In addition, with superior financial strength, distribution network expansion to tier-2 and tier-3 cities, and strong brand recall, it is poised to gain market share from disorganized players in both Wires and FMEG segments.”
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