Samvat 2082: Nifty index closed in the green in the Muhurta trading session held on the occasion of Diwali. However, it remained slightly below the day’s high. Even before Diwali, many brokerage houses had shared their top stock picks for the new Samvat.
On the day of Muhurta trading, CNBC-TV18 spoke to several leading experts to know which stocks they are betting on in the new year. These included names like Ramesh Damani, Atul Suri, Deepan Mehta, Nilesh Shah, Dharmesh Kant and Deven Choksi. Let us know the choices of these giants.
Ramesh Damani
Market veteran Ramesh Damani is still bullish on the PSU sector. He believes that the government’s focus on shipbuilding sector has created good momentum in this theme. They are also betting on the government’s CapEx.
Damani said, ‘Now the importance of ‘rare earths’ is being understood in the world. I believe the government may provide capex funding to some PSUs for exploration and processing of rare earths. Companies related to this theme can benefit greatly.
According to Damani, he is also positive on infrastructure development and midcap pharma sector. He said, ‘A lot of innovation is happening in midcap pharma companies below Rs 10,000 crore. Vaccines, antibiotics, and ANDAs are expanding the portfolio. These sectors may see good growth in the coming times.
Dipan Mehta (Dipan Mehta, Elixir Equities)
Deepan Mehta is bullish on the AlcoBev sector. His favorite company is Allied Blenders, in which he and his clients have invested. “The company is moving up the value chain,” he said. Its margins are improving due to premium brands and strong distribution network.
The second choice is Tilaknagar Industries, which he considers a ‘high risk, high return’ stock. However, he warned that there is a lot of regulation in this industry, which can lead to fluctuations in performance.
Nilesh Shah, Envision Capital
Nilesh Shah says that small banks are ready for growth now. He said, ‘They have been underperforming for a long time, but now the environment is favorable for them. The bottom of NIMs has been formed, credit offtake is increasing. This may lead to re-renting of their shares.
He has also bet on decarbonization, electrification and consumer themes. He says he has invested in Ather Energy, which is a technology-driven company and is growing market share, even as bigger players have now entered the EV market.
Dharmesh Kant (Dharmesh Kant, Chola Securities)
Dharmesh Kant named Aurionpro Solutions as his first choice. He says that this stock can go up to ₹ 1,675 and its re-rating phase can start. He said that the order received from SBI has opened the doors of other banks for the company.
He said, ‘About 20% of the company’s revenue comes from data center architecture. Apart from this, its business is also growing in transit, mobility and ticketing systems. His second stock is Reliance Industries, in which he sees a rise of up to ₹1,650. Dharmesh’s third stock is Bank of India, in which he is expecting a target of ₹155.
He said, ‘Bank of India’s valuation is currently at 0.6x price-to-book, which is quite cheap. Advances are growing at 14% and asset quality is improving. Its multiple re-renting is possible in the coming years.
Atul Suri
Atul Suri says that in the last few years we had the lowest exposure in banks, but now we are most bullish on banks and financials. He believes that banking and financials will be the biggest thematic play in the coming 3-4 years.
Their choice in the NBFC space is Paytm, which is included in their portfolio. He said, ‘This is a strong financial platform business. It has a large user base and is a scalable model. Both GST cut and consumption growth together can prove to be a positive trigger for this.
Diwali Stock Picks: These two stocks can give returns up to 30%, expert advised to buy
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