Diwali Stock Picks: These five stocks including TCS, Axis bank can fill your bag, know what the brokerage firm said

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Diwali 2023 Stock Picks: Preparations for Muhurat trading on Diwali are going on in full swing. However, investors are a little worried after seeing the decline in the stock market for the last two days. The Indian domestic equity market is set to reach an all-time high in 2023. Frontline index Nifty 50 crossed the 20,000 mark. At the same time, the broader index Nifty Mid performed better with a gain of 30 percent and Smallcap with a gain of 36 percent.

Even after Diwali, the global geopolitical situation will remain critical as the Israel-Palestine war has further disturbed the already deteriorating global order due to the Russia-Ukraine war. Analysts expect the Indian market to maintain its current bullish momentum over the next year, given growing fundamental headwinds.

Meanwhile, some stocks have been selected by Religare Broking for Diwali 2023. The brokerage firm believes that these shares can please investors on Diwali.

Tata Consultancy Services (TCS)

TCS topline has been growing at a steady pace of 12.9 per cent CAGR or compound annual growth rate over the last five years due to strong demand for the transformation towards digital and cloud technology, amid the large-cap IT pack. On the financial front, the brokerage estimates its revenue/EBIT to grow at 16.5/19.8 per cent CAGR in FY23-25E. Its target price can be Rs 4,089.

ITC

ITC will continue to focus on the ITC Next strategy that will help it grow the non-cigarette business, particularly FMCG, by renewing, refurbishing and premiumizing products while building a future-ready portfolio. Furthermore, the demerged hotel business is progressing as per the company’s plan which is positive. Religare Broking has set the target for this at ₹535.

Axis Bank

Retail assets remain the main driver of growth for Axis Bank, growing at a CAGR of 17 per cent during FY 2020-23. Bank deposits have grown at a CAGR of 15 percent during the financial year 2020-23. The brokerage is positive on the stock given the bank’s growing asset book, premiumization of deposits, wealth management business and its market position in the credit card segment. The firm has set its target at ₹1,167.

Maruti Suzuki India

With improved product mix and favorable commodity prices, the brokerage firm estimates that Maruti Suzuki India will continue to gain market share in its key segments which will aid its revenue growth. Its target price has been kept at ₹ 12,714.

SBI Life Insurance

SBI Life Insurance’s Annualized Premium Equivalent (APE) has grown at a CAGR of 16 per cent over FY 2020-23, while Gross Written Premium (GWP) has grown at 18.3 per cent during the same period. Religare Broking has kept its target price at Rs 1644.

(Disclaimer: The views and recommendations given above are those of individual analysts or broking companies. We advise investors to check with certified experts before taking any investment decision. Investing in the stock market is subject to market risk.)

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