Diwali picks: 10 stock picks for Samvat 2079 by HDFC Securities

Aster DM Healthcare is one of the largest integrated private healthcare service providers operating in Gulf Cooperation Council (GCC) and India. GCC contributed to 77 per cent of revenues, while India accounted for the balance in FY22. We recommend investors to buy the stock at Rs 242 and add more on dips at Rs 211 for a target price of Rs 278.

The company has kicked-off a low capex brownfield expansion. To expand its healthcare offerings for its patient base, the company is actively expanding Aster Labs and its pharmacy distribution network. Better case mix, price hikes and expansion in Tier 1 cities are likely to improve its ARPOB. Medical value tourism could find traction due to its focus on specialties.

Bharat Dynamics is a leading Defence PSU in India, manufacturing guided missile systems. It is engaged in the manufacturing of surface to air missiles, anti-tank guided missiles, underwater weapons, air-borne products and allied defence equipment. We recommend investors to buy the stock at Rs 858 and add more on dips at Rs 774.

It has been of strategic importance to the Government of India, as it is the prime production agency under India’s Integrated Guided Missile Development Programme. It is continuously engaged in new product development and upgradation of existing products to meet customer requirements. Its order book stood at about Rs 13,000 crore.

Bharat Electronics is a defence public sector undertaking, engaged in the business of Defence Electronics, which is empowering the nation’s defence forces, and in other chosen areas of Professional Electronics. We recommend investors to buy the stock at Rs 101 and add more on dips at Rs 87.

BEL has formed many strategic alliances and partnerships with Defence laboratories, the Ordnance Factory Board, DPSUs, niche technology companies and reputed global OEMs. Its order backlog stood at Rs 55,333 crore as of June 30, 2022, which is 3.3x TTM revenue. BEL is also focusing on increasing its non-defence revenues by diversifying into civil segments.

Birla Corporation is the flagship company of the MP Birla Group. Incorporated as Birla Jute Manufacturing Company in 1919, it was given shape by MP Birla. Birla Jute Mills is the first jute mill started by an Indian entrepreneur. We recommend investors to buy the stock at Rs 896 and add more on dips at Rs 784.

It is committed to increasing its annual cement production capacity to approximately 30 million tons (mt) by 2030. It has two operational captive limestone mines (Sagmania & Birhulli) at Satna, Madhya Pradesh and operational captive limestone mines (Nagri mines Jai,and Surjana) at Chanderia, Rajasthan. Government incentives to provide a cost advantage.

Cipla is a leading global pharmaceutical company and third largest in India, with a 4.8 per cent market share in IPM. The company focuses on respiratory, anti-retroviral, urology, cardiac, anti-infective, gastrointestinal and CNS therapeutic segments. We recommend investors to buy the stock at Rs 1109 and add more on dips at Rs 992.

Its complex generics portfolio continues to scale-up strongly, with Albuterol US revenue surpassing $100 million, 3 inhaler products pending USFDA approval and another 2 inhaler products in development. Unlocking of the peptide injectables pipeline has also commenced through the launch of lanreotide and another 5 products pending USFDA approval.

Deepak Fertilisers and Petrochemicals Corporation has a presence across Isopropyl Alcohol, Nitric Acid, Methanol, Liquid CO2, Ammonia, Technical Ammonium Nitrate, Bentonite Sulphur, NP and NPK fertilisers. We recommend investors to buy the stock at Rs 895 and add more on dips at Rs 791.

In FY22, the company reported 32 per cent YoY growth in revenue, along with record high profitability. We project a 14 per cent revenue CAGR, led by strong growth in both segments. The long-term growth of the company is expected to be underpinned by a change in its product mix, head room availability of additional capacities emerging from better operational management and de-bottlenecking, along with greenfield expansions.

ICICI Bank is the second largest private sector bank in India in terms of assets size and is designated as one of the domestic systemically important banks in the country. The total balance sheet size of the bank on a standalone basis stood at R 14,15,58 crore as on June 2022. We recommend investors to buy the stock at Rs 87 and add more on dips at Rs 773.

We believe that the Indian banking industry is at the cusp of a credit upcycle. Back book cleaning is almost complete and the pace of recoveries has accelerated. In FY22, the NPAs stood at around a six year low level and balance sheets are now adequately capitalised. The credit growth prospects look promising. To ride the growth, we feel that ICICI Bank is one of the best placed large private sector banks.

Incorporated in January 2003, Rail Vikas Nigam is a schedule A – public sector enterprise and a miniratna. RVNL is a project execution company and works for the Ministry of Railways. It executes all types of railway projects. We recommend investors to buy the stock at Rs 36.8 and add more on dips at Rs 32.75.

Rail Vikas Nigam has an asset-light business model, which helps keep its fixed assets lower, enabling it to keep its balance sheet stress free, and resulting in lower inventory days. Its experienced management and execution teams give it a competitive advantage, which has contributed significantly to increasing its project execution capabilities.

Sun TV Network is a leading regional television broadcaster in India and has a presence across genres like general entertainment, movies, music, news, kids, action and life, with a dominant market share in the southern states of India. We recommend investors to buy the stock at Rs 536 and add more on dip at Rs 468.

Sun TV has been present in the television broadcasting space for over two decades and has gradually expanded its channel base to 33 as on date. It broadcasts programs in Tamil, Telugu, Kannada, Malayalam, Marathi and Bangla, across various genres, such as general entertainment, movies, music, news and kids.
Increasing interest in regional content among the Indian population across the borders results in higher overseas viewership, attracting foreign investment.

TCI Express is one of the pioneers in the Indian express distribution industry. Touted as one of India’s leading and premier express distribution and first and last mile delivery services providers. We recommend investors to buy the stock at Rs 1,890.4 and add more on dips at Rs 1,640.

The express logistics industry is expected to clock robust growth, with growing demand for faster delivery, government initiatives, policy support, improved road connectivity and reducing turnaround times. Given its wide network of branches and balanced mix of large corporations, TCIE is well positioned to capitalize on growing market opportunities and deliver long-term sustainable growth through its asset-light and comprehensive express offerings.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)