ICICI Direct has suggested 10 Diwali Muhurat Stock Picks for 2022-23.
Last year in 2021 also ICICI Direct has suggested Diwali stocks. Suggested stock last time was Bata India, Bank of Baroda, Action Construction, TCNS clothing, Gateway Distriparks, Mahindra Life space, and VSSL. These stocks have given returns in the range of 16-33% from 2021 Diwali to 2022 Diwali.
So, it makes sense to invest in the stocks suggested by ICICI Direct.
You must be excited to take benefit of the Diwali Muhurat session.
Let me share with you one-hour Muhurat trading for Diwali 2022 on the stock markets BSE and NSE are announced on Monday, October 24, 2022, by BSE, NSE. The Muhurat trading will start at 6:15 pm and end after an hour at 7:15 pm. Meanwhile, the pre-open session will commence at 6:00 pm and last till 6:08 pm.
Here are quality company stocks suggested by ICICI Direct on Diwali 2022.
10 ICICI Direct Diwali Muhurat Stock Picks – 2022-23
#1 Axis Bank
Axis Bank is one of the largest private-sector banks in India. As per ICICI Direct research, Robust business growth, improving operational efficiency and synergy benefits from the Citi acquisition would reflect positively on the earnings trajectory and price performance. We believe Axis Bank will deliver an RoA, RoE of ~1.5%, ~15%, respectively, over FY22-24E. The target price set by ICICI direct research team for Axis bank is INR 970 (22% upside).
#2 City Union Bank
City Union Bank is an old private-sector bank with a primary focus on MSME and Agri loans. The bank is aiming to strengthen its digital platform and branch expansion, which will keep operational expenses elevated in the near term. Revival in MSME is expected to benefit credit offtake as well as recoveries in the stressed asset pool. ICICI Direct has suggested City Union Bank as one of the best stock for investment in Diwali 2022. The target price set by ICICI direct research team for City Union Bank is INR 215 (17% upside).
#3 Apollo Tyres
Apollo Tyres (ATL) is a leading tire manufacturer, with operations in India (67% of sales) & Europe (31% of sales). Domestically, Apollo Tyres is expected to benefit from a cyclical upswing in the commercial vehicle space coupled with double-digit growth in the personal vehicle domain driven by greater consumer preference for SUVs.
The brokerage also expects the company to be a key beneficiary from a correction in prices of commodities like natural rubber and crude. The target price set by ICICI direct research team for Apollo Tyres is INR 335 (25% upside).
#4 Eicher Motors
Eicher Motors is one of the leading automobile companies in India. The brokerage expects sales volumes at Royal Enfield to grow at a compounded rate of 25 percent over the next two financial years. Amid high double-digit growth prospects, the company is trading at inexpensive valuations, according to ICICI Direct. The target price set by ICICI direct research team for Eicher Motors is INR 4170 (23% upside).
Coforge is a global digital services and solutions provider with deep domain expertise in select industry verticals.ICICI Direct expects Coforge to have 19.1 percent compounded revenue growth over the next two years. The brokerage also expects an offshoring focus to drive further margin expansion for the company. The target price set for Coforge is INR 110.
#6 Lemon Tree Hotels
Lemon Tree (LTHL) is the largest hotel chain in the mid-priced segment of India.The hotel sector’s outperformance in FY22 was significantly driven by Indian leisure tourists. With the opening of international borders to foreign tourists, we expect the hotel business in key cities like Mumbai and Delhi to also improve significantly. Lemon Tree is likely to be the key beneficiary of the same.
The favorable location of its properties in prominent tourist and business districts supports revenue growth prospects & reduces concentration risk. The target price set for Lemon Tree Hotels by ICICI direct research team for Diwali 2022-23 is INR 110 (29% upside).
#7 Healthcare Global Enterprises
HCG operates one of the largest private cancer care networks in India with end-to-end solutions available under a single corporate entity. Owing to an exclusive agreement with vendors, HCG procures equipment on a deferred payment basis.HCG, with its integrated, one-stop-solution, and focused model, is well poised to capture growing potential with a pan-India focus on cancer therapy. The target price set for HCG by ICICI direct research team for Diwali 2022-23 is INR 345 (17% upside).
#8 Laurus Labs
Laurus Labs operates in the segment of generic APIs & FDFs (formulations), custom synthesis, and biotechnology. A stable API order book, product launches, and capacity expansion are some of the key levers that keep ICICI Direct bullish on this stock. The target price set for Laurus Lab by ICICI direct research team for Diwali 2022-23 is INR 675 (34% upside).
#9 Container Corp
Concor is the dominant player in the container train operator (CTO) business. Led by high volume growth and incremental revenue from new initiatives, ICICI Direct expects Concor to report compounded revenue and profit growth of 22 percent and 46 percent respectively over the next two years. The target price set for Container Corp by ICICI direct research team for Diwali 2022-23 is INR 890 (28% upside).
#10 Havells India
Over the last decade, Havells India has transformed its business profile from being an industrial product-driven business to a consumer-driven business. ICICI Direct expects Havells to report compounded revenue growth rate of 16 percent over the next two years led by new product launches and dealer expansion. It also sees the softening of raw material prices and the launch of premium products to aid recovery in margins. The target price set for Container Corp by ICICI direct research team for Diwali 2022-23 is INR 1650 (29% upside).
For more information about ICICI Direct Diwali Muhurt Pick 2022 – Download ICICI Direct Research Diwali 2022 – Complete Report.
(The views content and recommendations expressed in this post are of leading stock market experts and do not represent those of Moneyexcel.com. Please consult your financial adviser before taking any position in the stocks mentioned)