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Synopsis: In anticipation of the Muhurat trading session for Diwali 2024, which is scheduled for November 1, Chola Securities has released its top stock picks for Samvat 2081. Investors have seen remarkable gains in the Indian equity markets over the past year, with the BSE Sensex up by 25%, and the midcap and smallcap indices surging by over 45%. Chola Securities has highlighted five stocks that it believes will continue to perform well: Hindustan Aeronautics (HAL), Ircon International, Bank of India, Life Insurance Corporation (LIC), and Narayana Hrudayalaya. These companies are positioned in key sectors like defense, infrastructure, banking, insurance, and healthcare, with strong order books and growth potential in the coming years.
As the Indian stock market gears up for the Muhurat trading session on November 1, 2024, from 6:15 PM to 7:15 PM, investors are preparing for what is believed to be an auspicious time for trading. Muhurat trading is a special one-hour session held during Diwali to mark the start of the new financial year according to the Hindu calendar, Samvat 2081. Historically, investors consider this time period favorable for making new investments.
Stock Picks from Chola Securities
Hindustan Aeronautics (HAL)
HAL, a leading aerospace and defense company, boasts an impressive order book of Rs1,20,000 crore, with further orders of Rs2,00,000 crore expected in the next few years. This robust outlook is driven by India's "Make in India" initiative and the company's indigenization efforts, which are expected to bolster operating margins. As of October 11, HAL’s stock was priced at Rs4,446.85.
Ircon International (IRCON)
Specializing in large-scale infrastructure projects, Ircon International benefits from a strong order book of Rs26,784 crore. The company's expanding presence in renewable energy, particularly its plans to establish a 500 MW solar power plant, adds to its appeal. Ircon has maintained consistent profitability with a return on equity (ROE) of 17%. Its stock was trading at Rs226.20 as of October 11.
Bank of India
In Q2 FY25, Bank of India delivered a 12% year-on-year increase in total business, with its retail, agriculture, and MSME loans growing significantly. The bank's credit growth targets for FY25 align with India's rising credit demand, positioning it well for the coming year. Shares of the bank closed at Rs105.50 on October 11.
Life Insurance Corporation of India (LIC)
As India’s largest insurer, LIC has a dominant market share in both premiums and policies. The company is undergoing a digital transformation with a new platform in collaboration with Infosys, aimed at enhancing customer service. LIC also plans to expand its health insurance offerings through acquisitions. Its stock was valued at Rs949 on October 11.
Narayana Hrudayalaya
A leading hospital chain in India, Narayana Hrudayalaya is known for its cost-effective treatments in cardiology and oncology. The company’s strong cash flow and profitability metrics make it a compelling investment, especially given its plans for a Rs4,000 crore capex over the next 3-4 years. On October 11, its shares were trading at Rs1,230.
Conclusion : With the festive spirit driving optimism and market momentum, Chola Securities' recommendations for Samvat 2081 offer a blend of companies from key sectors poised for growth. The Muhurat trading session provides a unique opportunity for investors to strategically position themselves in the market.
Disclaimer: The information provided in this article is for informational purposes only. Always consult with a certified financial advisor before making any investment decisions.
