Diwali Hot Stocks: 5 Top Chart Picks By Religare Broking

New Delhi: Brokerage firm Religare has taken out a report on Diwali Picks 2024, recommending top picks for stocks of various sectors. Here are 5 stock recommendations by Religare Brokerage .

State Bank of India: BUY

SBI is well-positioned with a low loan-to-deposit ratio, allowing flexibility despite softer deposit growth. Its stable retail deposits and consistent 22-23% credit market share enable it to gain market share as competitors struggle. Additionally, technology investments have improved cost efficiency, reducing the cost-to-income ratio below 50% and enhancing long-term profitability. Based on these factors, we expect NII/ PPOP/PAT to grow at a CAGR of 14.2%/7.6%/7% over FY24-26E. We have a Buy rating on the bank with a target price of Rs 941.

ITC Ltd: BUY

ITC Limited stands as a diversified leader in India, excelling in cigarettes, FMCG, hotels, agri-business, and paperboards. Its ITC Next strategy drives future growth through innovation, agile supply chains, and sustainability initiatives. By launching new products across various categories and enhancing distribution, ITC is fortifying its core businesses. With a strong portfolio of brands and an extensive market presence, ITC mitigates risks through diversification while leveraging brand equity to capture market share, ensuring sustained revenue and reinforcing its leadership position. On the financial front, we have estimated its revenue/EBITDA/PAT to grow at 12.7%/13.5%/13.8% CAGR over FY24-26E. Thus, maintaining our Buy rating and a target price of Rs 594.

Titan Company Ltd: BUY

Titan has a large presence in the Jewellery industry through its brands like Tanishq, Mia, Zoya and Caratlane and has an overall market share of ~8% further, downward revision of custom duty on gold imports is a positive in the long-term with short-term implications on profitability and gold on lease. Company is also an emerging lifestyle player with presence across segments like Watches, Eye-Care and Emerging business. The company is focus on increasing its footprint by store expansion while taking efforts to improve margins. Its new business continues to see consistent growth. On the financial front, we have estimated its revenue/EBITDA/PAT to grow at 21.5%/28.0%/28.9% CAGR over FY24-26E. Thus, maintaining our Buy rating and a target price of Rs 4,270.

Berger Paints India Ltd: BUY

Berger Paints has demonstrated resilient performance, consistently surpassing industry growth rates and achieving the highest market share among listed competitors. Further, management remains positive on the growth prospects which would be driven by double digit volume growth for decorative segment, steady demand, innovations and expansion in distribution along with catch up in rural areas will help in aiding growth. On the financial front, we estimate its revenue/EBITDA to grow at 13%/15.9%/ 16.3% CAGR over FY24-26E and maintain a Buy rating with target price of Rs 655. 

Jyothy Labs Ltd: BUY

We believe Jyothy labs has come a long way by innovating products across categories, investing on advertisements & promotional activities and gaining market share. Going ahead, the management aims for volume led growth and at the same time maintain margins. Additionally, they want to invest behind brand building initiatives, manufacturing and strengthen distribution reach in rural areas as well as grow digitally. We are optimistic on the growth prospect of the company and estimate its Revenue/EBITDA to grow at 15.7%/17.3% CAGR over FY24-26E. Hence, We have Buy rating on the stock by to arrive at a target price to Rs 624.

Disclaimer: The article is for information purpose only and not meant for any financial advice. The stock recommendations provided in the article are those of individual analysts or brokerage firms/companies. They do not reflect the views of Zee News. Investors must consult with certified and professional experts before making any investment decisions.