New Delhi: As we enter Vikram Samvat 2081 following this Diwali, the markets will be keenly tracking several notable macro events set to take place this year. Starting with the US elections, further rate cuts supporting demand and a corporate earnings uptick, rising prices of precious metals, geopolitical changes in the world due to wars –will all weigh in on the investment portfolio of the investors.
“There is no doubt that the coming year will set new benchmarks in the investment field, given India’s development initiatives, its strive to emerge as a global manufacturing hub, strong domestic demand, and the increasing trend of domestic savings flowing into the equity market,” said SAMCO Securities.
Muhurat Pick #1: HDFC Bank Ltd
HDFC Bank, India’s largest private sector bank, has maintained a robust 10-year profit CAGR of 21.74%, operating with a NIM of 3.5% and a low net NPA of 0.3%. Advances and deposits have shown steady growth. Currently, the stock trades below its 10-year average price-to-book value and at a price-to-earnings ratio of 19, offering a favorable risk-reward profile with a substantial downside buffer.
Muhurat Pick #2: Vindhya Telelinks Ltd
Vindhya Telelinks Limited, a key cable manufacturing joint venture between Universal Cables Limited and Madhya Pradesh State Industrial Development Corporation, has shown robust growth over the last 5 years, nearly doubling revenues with a 14.3% CAGR. The company holds significant investments in Birla Cable Ltd, Birla Corporation Ltd, and Universal Cable Ltd, totaling ₹3,618 crore—surpassing its market capitalization of ₹2,545 crore. This solid investment base underscores Vindhya Telelinks’ strong fundamentals and financial potential.
Muhurat Pick #3: Ramco Industries Ltd
Ramco Industries Ltd., a leading South Asian building materials manufacturer, specializes in Fiber Cement sheets, Calcium Silicate Boards, cotton yarn, and wind energy. Over the past decade, sales grew at a 7% CAGR, while the share price rose at a 14% CAGR. Known for its financial stability, Ramco Industries boasts a low debt-equity ratio of 0.07 and has consistently paid dividends since FY17, currently yielding 0.31%. The stock’s attractive price-to-book multiple of 0.5 offers a solid margin of safety, highlighting its investment appeal.
Muhurat Pick #4: Piramal Pharma Ltd
In USA, the Biosecure Act was passed by the House of Representatives on September 9, 2024, and is currently pending in the Senate. When enacted, the Biosecure Act would prohibit US federal agencies from contracting with or procuring services and equipment from ‘biotechnology companies of concern,’ which includes several Chinese pharmaceutical companies. This legislation could create opportunities for Indian pharmaceutical companies, particularly Piramal Pharma, which has a significant presence in the U.S. market, to increase the market share and boost its revenue and profits.
Muhurat Pick #5: Cholamandalam Financial Holdings Ltd
The company has reported strong financial performance in FY24 and aims to improve it further by building a strong franchise with a focus on growth and profitability.
It shows convincing growth potential given a comfortable valuation. Also, around 40% of the stake of the company is held by DIIs & FIIs, providing further confidence in the optimistic outlook of the company.
Muhurat Pick #6: Deepak Fertilisers and Petrochemicals Corporation Ltd
The stock has been in a strong uptrend since June 2024 and has consistently remained above the 50-day moving average, except for a few days last week. The stock is also showing momentum, outperforming the returns of the Nifty 500 Index over the past year.
Despite experiencing a price and volume breakout, the stock is trading at just around 2.65 times its book value, making it an attractive investment pick.
Muhurat Pick #7: PG Electroplast Ltd
PG Electroplast, diversified Indian Electronic Manufacturing Services provider, being operating in a capital-intensive segment, the company’s Debt to Equity stands at 0.42 and is trading at a Price-to-Earnings ratio of 83, lower than with the industry PE of 106 times but higher than its 5-year Median PE of 50 times. Further, Q1FY25 recorded the highest year consolidated revenues and PAT with a phenomenal growth of 95%, and 148% YoY respectively.
Muhurat Pick #8: Persistent Systems Ltd
Persistent Systems is an AI-led, Platform-driven Digital Engineering & Enterprise Modernization partner, is almost a debt-free company trading at a Price-to-Earnings ratio of 72, much higher than its industry PE of 34 times and its 5-year Median PE of 40. Further, Q2FY25 recorded highest ever year revenues and PAT with a phenomenal growth of 20%, and 23% YoY respectively.
Muhurat Pick #9: Hikal Ltd
Hikal Limited, a comprehensive life sciences provider, despite challenges from demand fluctuations and competition, market conditions are expected to stabilize by Q3 or Q4 FY25. The CDMO segment continues to perform strongly, with high margins and increased client interest. The stock is witnessing rising delivery volumes, indicative of investor optimism.
Muhurat Pick #10: Tube Investments of India Ltd
The weekly chart displays a consistent pattern of higher highs and higher lows, indicating a sustained uptrend. The stock is positioned above the 20, 50, and 200-day moving averages in the daily timeframe. Additionally, the rise in volume accompanying the price increase further validates this positive outlook.
(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.)
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