Every year brokerages come up with their select stock recommendations ahead of Diwali. For 2024, Anand Rathi has shared six such 'Buy' ideas for investors which include shares of KRN Heat Exchanger and Refrigeration Ltd, Tejas Networks Ltd, Data Patterns (India) Ltd, Interglobe Aviation Ltd (IndiGo's parent), Power Grid Corporation of India Ltd and Mahindra & Mahindra (M&M) Ltd.
The brokerage sees a 30 per cent upside in KRN Heat Exchanger. It expects a 12-month target price of Rs 550 on the counter from current levels of Rs 423. "KRN a manufacturer of fin and tube-type heat exchangers widely used in the growing HVAC&R industry is expanding its capacity which would generate increased growth in revenues from existing as well as new products like bar and plate heat exchanger, oil cooling unit with blower and motor and roll bond evaporator with improved margins from the export markets. Looking at the company's experienced legacy along with its plan to expand internationally and rising demand in HVAC market and strong demand from emerging sectors like data centers which could aid KRN's revenue and profit margin in the long run," Anand Rathi said.
For Tejas Networks, it has indicated a 28 per cent jump from the current market price (CMP) of around Rs 1,292. Anand Rathi pegged the stock at a value of Rs 1,650. "Tejas has a total order book of Rs 4,845 crore, of which order book from India is Rs 4,627 crore and outside India is Rs 218 crore. The company has ramped up their 4G/5G RAN shipments for BSNL’s network. In Q2 FY25, Tejas did more than 30k sites and shipped 58k sites to BSNL network cumulatively. Indian railways - Kavach, bharatnet for Phase 3, expansion of BSNL's 4G network and 5G upgrades are some of the opportunities which will help it show strong revenue growth going forward," the domestic brokerage said.
In case of Data Patterns, Anand Rathi believes the fair value of the stock lies at Rs 2,850, up 26 per cent from CMP of Rs 2,264. "The company holds 100 export orders and expects new radar orders from South Korea and Europe in the coming quarters. The company forecasts total order inflows of around Rs 1,000 crore for FY25. Going forward, the company expects revenue growth of about 20-25 per cent in FY25 and is targeting a revenue CAGR of over 25 per cent in the next 2-3 years. Margins are projected to stay around 35 per cent, with anticipated earnings growth of 25-30 per cent," the brokerage mentioned.
Anand Rathi values IndiGo's stock at Rs 5,300, an uptick of 17 per cent from Rs 4,528 level. "IndiGo as India's leading airline has a market share of 62 per cent as of FY24 with 18 per cent of market share in international passenger segment. It served 2.8 crore customers in Q1 FY25. Huge investments by government in construction of airports, UDAN scheme and increase in number of passenger are some of the growth triggers for aviation industry going forward," it said.
Next on Anand Rathi's festive buy list is Power Grid Corporation. It anticipates a 16 per cent rise in the stock price, from Rs 319 to Rs 370 over the next 12 months. "PowerGrid stands to benefit significantly from India's goal to expand its renewable energy capacity to 500GW by 2030. In Q1, they became L1 bidders for three ISTS TBCB projects worth Rs 4,172 crore, including Rajasthan RE Power projects in Jaisalmer and Barmer (Phase IV, Part B & D) and the Fatehpur-Badla HVDC project (Phase III, Part I). The company revised its FY24 capex plan to Rs 18,000 crore, up from Rs 15,000 crore. For FY25, Rs 5,000 crore is allocated for RTM and Rs 13,000 crore for other projects," the brokerage stated.
Mahindra & Mahindra shares also featured in Anand Rathi's top bets for this year's festival of lights. It expects the stock to hit Rs 3,250, up 15 per cent from CMP of Rs 2,835 in the next 12 months. "M&M has been the dominant market leader in the domestic tractor market, commanding a market share of 42 per cent in FY24. It aims to launch new models across ICE and EV in auto division. On the back of strong order backlog for UV's, new launches in ICE and EV's and a leadership position in tractors. We believe that company will leverage its operational performance achieving strong volume growth in FY25 for both the division," the brokerage highlighted.
Stock exchanges will hold Diwali Muhurat trading session on November 1, 2024, from 6 pm to 7 pm, marking the start of the Hindu calendar year, Samvat 2081. While regular trading will remain closed for Diwali, the special one-hour Muhurat trading session will be open in the evening. A pre-opening session is scheduled from 5:45 pm to 6 pm, just before the main trading window.
The Muhurat trading session is considered an auspicious time. This one-hour trading window has long symbolised a fresh start for businesses as investors make new financial commitments under the glow of Diwali festivities.