The Indian stock market has faced a rocky start to October, with major indices, including Sensex and Nifty 50, experiencing a decline of roughly 1.5% during the initial trading sessions. This downturn was particularly influenced by negative global signals, exacerbated by rising tensions in the Middle East, notably the Israel-Iran conflict, which have dampened investor confidence. As investors weigh the implications of geopolitical strife, the market’s performance reflects a cautious sentiment.
In the midst of this volatility, DRChoksey FinServ has identified six stocks that demonstrate potential upside, suggesting that these picks could yield gains of up to 28% this month. Investors looking for opportunities may find these recommendations particularly noteworthy.
Here are the selected stock picks for October by Deven Choksey Research:
Top Stock Picks for October
ACC | Buy | Target Price: ₹2,923
The brokerage anticipates that ACC will experience a compound annual growth rate (CAGR) in revenue, EBITDA, and PAT of 8.8%, 15.1%, and 8.4%, respectively, from FY24 to FY26E. Based on a multiple of 13.0x applied to an estimated FY26E EBITDA of ₹40,527 crore, the target price for ACC shares is projected at ₹2,923, earning it a ‘Buy’ rating.
Glenmark Pharmaceuticals | Buy | Target Price: ₹1,894
Glenmark Pharmaceuticals is favored with a ‘Buy’ sentiment, targeting a price of ₹1,894 per share. Projections indicate a revenue growth of 10% CAGR and an adjusted PAT growth of a remarkable 42.5% CAGR over the years FY23 to FY26E, supported by a PE multiple of 31.0x based on FY26E EPS.
Godrej Consumer Products | Accumulate | Target Price: ₹1,541
Godrej Consumer Products is undertaking an aggressive growth strategy focusing on acquisitions and market expansions. With an expected revenue CAGR of 10.1%, the company has maintained a marketing investment increase of 36% YoY for FY24. The target price is set at ₹1,541, given the focus on stabilizing and enhancing performance.
Rossari Biotech | Buy | Target Price: ₹1,034
Rossari Biotech shows promise with expected revenue and PAT growth rates of 20.3% and 22.7% CAGR, respectively, for FY24-FY26E. The stock is currently valued at a PE multiple of 29x on FY26E EPS of ₹35.7, leading to a target price of ₹1,034 per share.
SBI | Buy | Target Price: ₹1,010
The State Bank of India (SBI) has shown a robust performance with a Return on Equity (RoE) of 21.0% and Return on Assets (RoA) of 1.1% in Q1FY25. Valuing the bank at 1.5x FY26E P/ABV on an ABV of ₹520.6 and factoring in subsidiary values, a price target of ₹1,010 has been established with a ‘Buy’ recommendation.
Tata Motors | Accumulate | Target Price: ₹1,156
Tata Motors is expected to see favorable performance, particularly within its Jaguar Land Rover (JLR) segment. The target price set at ₹1,156 reflects strong prospects across its segments, positioning it as an accumulation recommendation for investors.
Conclusion
Investors are advised to carefully consider these recommendations amid the current market turbulence. The stocks listed not only have shown resilience but also promise growth in various sectors. It is crucial for investors to conduct thorough research or consult financial experts before making any investment decisions.
Disclaimer: The insights and recommendations provided are based on analyses from individual analysts or brokerage firms and do not represent the views of any organization. Investors should seek guidance from certified professionals prior to investing.
