Diwali Muhurat trading: Samvat 2079 outlook positive; ITC, Ashok Leyland among top stock picks

Diwali Muhurat trading Samvat 2079: Diwali (24 October) is a share market holiday, however, both NSE and BSE will open for an hour for Diwali muhurat trading. On both the indices, trading in equity, equity and derivative segment will start at 6:15 PM and will end after one hour at 7:15 PM. Pre-opening session will begin at 6:00 PM and it will end at 6:08 PM, according to the notice available on the exchange website. Matching timings on muhurat trading sessions will be from 6:08 PM to 6:15 PM. However, trade modification in the call auction will end at 7:45 PM. All trades executed at Indian stock market in Diwali 2022 muhurat trading session shall result in settlement obligation, the exchange circular stated. The new Samvat 2079 looks much brighter and more promising, according to Axis Securities.

Axis Securities Diwali top stocks picks

IDFC First BankTarget price: Rs 70| Upside 27%“The stock is poised for re-rating given the continuous improvement in the bank’s asset quality, its strategy to improve operating performance with expected operating leverage and superior return ratios over FY23-25.”

Westlife DevelopmentTarget price: Rs 870| Upside: 21%“The company is well-placed to capitalize on the growing QSR opportunity. Company’s EBITDA margin to be in the range of 14%-15%, driven by improving product mix, Operating leverage and cost rationalization, and Economies of scale from operating three categories in one store without incurring major Capex.”

ITCTarget price: Rs 380| Upside: 15%“The stock is currently trading at 18x FY25E EPS, 4-5% dividend yield provides a huge margin of safety compared to its peers. Moreover, the recovery in the cigarette business and uptick in Agri, Hotels, and Paperboard in the near term makes ITC a better play in the entire FMCG pack where valuations are high.”

Sundaram Finance“Target price: Rs 2,490| Upside: 13%Sundaram Finance’s well-diversified secured loan mix with strong underwriting practices and comfortable capital position (CAR +24.1%) will support operating performance in the currentbroad-based recovery in the CV space.”

Ashok LeylandTarget price: Rs 175| Upside: 17%“The company is well-positioned to benefit from the cyclical recovery, especially in buses and higher tonnage trucks where it has a higher market share. Demand recovery and gradual price increases are expected to drive improvement in the longer run. The RM cost pressures are likely to subside leading to margin improvement in the upcoming quarters.”

Aptus Value Housing Finance IndiaTarget price: Rs 350| Upside: 15%“Aptus remains well-placed in the high-growth market that exhibits lower competition due to the expertise required to cater to the un/underserved self-employed customers. While NIM compression over the medium term is imminent, stable Opex, and gradually improving credit costs with asset quality stress receding will support strong RoAs, thereby justifying premium valuations.”

Indian Hotels CompanyTarget price: Rs 375| Upside: 13%“Indian Hotel Industry is pegged to report ARR growth and occupancy improvement by 400 bps over the period CY22-24. Therefore, Axis Securities’ analysts expect significant improvement in the company’s realizations and occupancies, which in turn, would be further augmented by the strong operating leverage it enjoys among the industry peers.”

NOCILTarget price: Rs 300| Upside: 16%“NOCIL stands to be the key beneficiary of the China alternative theme in the niche rubber chemical space in India. The company is witnessing strong demand tailwinds and reducing pressure from raw materials. Furthermore, the operational leverage will boost its margin profile in the coming quarters.”

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Polycab IndiaTarget price: Rs 2860| Upside: 11%“Polycab has maintained a leadership position in the organized C&W segment with a market share of over 24%. Moreover, with superior financial strength, expansion of distribution network into tier-2, and tier-3 cities, and strong brand recall, it is poised to gain market share from unorganised players in both Wires and FMEG segments.”

(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)