The Indian stock market has enjoyed significant growth in Samvat 2080, with the Nifty 50 index gaining 25% despite challenges like inflation, geopolitical uncertainties, and interest rate hikes. This year, Arihant Capital Markets highlights 15 stocks for Samvat 2081, each selected for its strong growth prospects. Here’s a look at the recommendations across various sectors.
Disclaimer: Stock investments are subject to market risks. Please consult a financial advisor before making investment decisions.
Banking Sector
HDFC Bank | Target Price: ₹2,002
With a robust CASA ratio and expanding customer accounts, HDFC Bank is well-positioned for growth. Arihant expects the bank to continue benefiting from economies of scale, recommending a buy with a target of ₹2,002.
Automotive Sector
Mahindra & Mahindra (M&M) | Target Price: ₹3,334
Mahindra’s automotive division, especially in SUVs, has grown 24% year-over-year. Combined with strong performance in farm machinery sales, Arihant has rated M&M as an ‘accumulate’ stock with a revised target price of ₹3,334.
Hyundai Motor India | Target Price: ₹2,345
Hyundai Motor India’s role as a major export hub and its alliances within the Hyundai group offer significant advantages. Arihant Capital’s target for Hyundai stands at ₹2,345.
Manufacturing & Industrial Companies
AGI Greenpac | Target Price: ₹1,734
AGI Greenpac, on the brink of becoming India’s largest glass manufacturer post-HNG acquisition, is primed for expansion. With a customer base of over 500 brands, Arihant sees AGI Greenpac as a compelling buy at ₹1,734.
Meghmani Organics | Target Price: ₹195
Diversifying into Titanium Dioxide and insecticides, Meghmani Organics is poised for margin growth. Arihant’s buy recommendation sets a price objective of ₹195, citing sector resilience and new product lines.
Alicon Castalloy | Target Price: ₹1,604
As a supplier to major OEMs, Alicon Castalloy projects a 15% annual revenue growth, backed by a dependable cash flow. Arihant has assigned a valuation based on a 5.8x EV/EBITDA multiple.
Specialty and Consumer Goods Sector
Styrenix Performance Materials | Target Price: ₹3,000
Rising demand for electronics and home appliances propels Styrenix’s growth. Arihant has issued a buy recommendation, forecasting the stock to reach ₹3,000 due to positive global market conditions.
Laxmi Organic Industries | Target Price: ₹452
Focused on specialty chemicals, Laxmi Organic is positioned for revenue growth with a goal of tripling EBITDA by FY28. Arihant Capital has set a target price of ₹452 for the stock.
Saregama India | Target Price: ₹625
A key player in music and digital content, Saregama expects a 30% revenue CAGR over three years. Arihant’s target of ₹625 reflects confidence in Saregama’s multi-segment growth.
Sheela Foam | Target Price: ₹2,614
Sheela Foam, known for the Sleepwell brand, is expanding into untapped rural markets. Arihant’s buy rating with a target of ₹2,614 considers Sheela Foam’s expanding footprint and revenue potential.
Real Estate Sector
Sunteck Realty | Target Price: ₹900
Sunteck Realty expects 30-35% growth in pre-sales due to a strong project pipeline. Arihant recommends a buy at ₹900, highlighting the company’s brand strength and growing presence in high-value real estate.
Mahindra Lifespace Developers | Target Price: ₹755
With an emphasis on premium and mid-premium projects, Mahindra Lifespace leverages its strong brand recall and healthy balance sheet. Arihant’s target price of ₹755 underscores its growth prospects in the real estate upcycle.
Technology and Financial Services
Protean eGov Technologies | Target Price: ₹2,880
Protean’s digital identity services, including PAN verification and Aadhaar authentication, make it a market leader. Arihant values the stock at ₹2,880, citing its dominance and strong revenue outlook.
Piramal Enterprises | Target Price: ₹2,445
Piramal’s shift towards retail lending has improved its asset quality and margins. With anticipated AUM growth, Arihant has a buy recommendation with a target of ₹2,445.
Cement and Infrastructure
Dalmia Bharat | Target Price: ₹2,394
Dalmia Bharat, a key player in the cement industry, is expected to benefit from infrastructure expansion. Arihant projects an 11.3% CAGR in revenue and maintains a buy rating with a ₹2,394 target.
Conclusion: Preparing for Growth in Samvat 2081
Arihant Capital’s stock recommendations for Diwali 2024 span across sectors, from banking to infrastructure, emphasizing India’s promising economic landscape. Investors can consider these picks as part of a diversified portfolio to maximize returns during Samvat 2081.
