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Diwali

Axis Securities' Top 9 Diwali Stock Picks: Unlocking Up to 23% Upside

Strategic Insights

— 2 min read

Diwali is approaching, and Axis Securities has unveiled its list of top 9 stocks to bet on during this festive season. The brokerage firm has carefully curated these picks for potential investors, highlighting stocks with substantial growth prospects and significant upside. In this article, we will delve into the details of these stocks, examining the reasoning behind Axis Securities' choices and the key takeaways for investors.

Key Takeaways:

  • Kotak Mahindra Bank is expected to maintain a steady Loan-to-Deposit Ratio (LDR) between 85-86% due to deposit growth mirroring credit growth, despite margin pressure.
  • Federal Bank's share price is expected to increase by 16% with term deposits repricing and improving Net Interest Margins (NIMs) in H2.
  • KEC International has a well-diversified and robust order book, providing healthy revenue visibility for the next 18-24 months, and its target price is set at Rs 1,030 for a 20% upside.
  • Rainbow Children's Medicare is well-positioned to deliver healthy growth, supported by strong occupancy trends and its focused specialisation in paediatrics and maternity care, with a target price of Rs 1,625 for a 23% upside.
  • DOMS Industries' growth is supported by its expansion into new product segments, global partnership, and increased distribution, leading to a target price of Rs 3,110 for a 22% upside.
  • Chalet Hotels is expected to generate Rs 300 crore from the sale of remaining residential units, which will be deployed toward hospitality and commercial expansion, enhancing returns, and its target price is set at Rs 1,120 for a 19% upside.
  • Minda Corp is evolving into a high-value, technology-driven mobility solutions provider, supported by robust order wins and a strong order book, with a target price of Rs 690 for a 19% upside.
  • JSW Energy is set to benefit from the growing energy storage space, with its 3,800 TPA green hydrogen project expected to be commissioned soon, leading to a target price of Rs 625 for a 15% upside.
  • Coforge is well-positioned for growth, with multiple long-term contracts with leading global brands and a target price of Rs 1,980 for a 15% upside.

Statistics:

  • Kotak Mahindra Bank: margin pressure expected to continue due to repo rate changes, with deposit growth mirroring credit growth to maintain a steady LDR between 85-86% (Source: Axis Securities).
  • Federal Bank: share price expected to increase by 16% with term deposits repricing and improving NIMs in H2 (Source: Axis Securities).
  • KEC International: target price set at Rs 1,030 for a 20% upside, with a well-diversified and robust order book providing healthy revenue visibility (Source: Axis Securities).
  • Rainbow Children's Medicare: target price set at Rs 1,625 for a 23% upside, with strong occupancy trends and focused specialisation in paediatrics and maternity care (Source: Axis Securities).
  • DOMS Industries: target price set at Rs 3,110 for a 22% upside, with expansion into new product segments, global partnership, and increased distribution (Source: Axis Securities).
  • Chalet Hotels: expected to generate Rs 300 crore from the sale of remaining residential units for deployment toward hospitality and commercial expansion (Source: Axis Securities).
  • Minda Corp: target price set at Rs 690 for a 19% upside, with evolution into a high-value, technology-driven mobility solutions provider (Source: Axis Securities).
  • JSW Energy: set to benefit from the growing energy storage space, with a 3,800 TPA green hydrogen project expected to be commissioned soon (Source: Axis Securities).
  • Coforge: target price set at Rs 1,980 for a 15% upside, with multiple long-term contracts with leading global brands and a positive outlook (Source: Axis Securities).

Sources:

  • Axis Securities
  • Contify.com

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