Investor interest in India has been rising steadily due to economic growth, strong stock market performance and a rapidly growing population. Analysts at equity research firm Kotak Securities and asset management firm Mirae Asset said multiple industries and stocks are expected to perform well as the South Asian powerhouse approaches Diwali. Samvat 2081 – which begins on Diwali, October 31 – marks the beginning of the Hindu New Year. Some investors believe this is a new starting point for the market. Analysts at Kotak say most industries and stocks are overvalued as the new year begins. Higher market valuations make any market correction an opportunity to buy high-quality stocks with attractive long-term valuations, they added. Their remarks came as Indian markets made history on Samvat 2080, last year, with the BSE Sensex crossing 85,900 points in September and the benchmark Nifty 50 index crossing 26,250 points. So far this year, as of October 30, the BSE Sensex index, which represents the country’s 30 largest and most traded companies on the Bombay Stock Exchange, has gained about 10.9%, while the benchmark Nifty 50 index has gained about 12.2%. Here are four buy-rated Indian stocks that analysts are betting on this Diwali, with potential upside of more than 30%. Fiem Industries Fiem Industries is one of Kotak Securities’ top picks due to its debt-free balance sheet and strong cash flow. The auto lighting and mirror maker, which primarily serves two-wheelers, has been “outperforming the industry,” analysts wrote in a September 3 launch note. , can recover from (a) two-wheeler industry, which picked up during the festive season following sluggish sales in July-September. Kotak pointed out that the growing popularity of LED lighting in automobiles also supported the company’s Growth. Looking ahead, analysts expect Fiem’s full-year revenue to grow at a CAGR of 15% and earnings to grow at a CAGR of 19% on the National Stock Exchange of India (NSE) and Mumbai. Trading on the BSE, Kotak has set a 12-month price target on the stock of INR 2,140 ($25.45), implying a potential upside of approximately 40.8%. Company Gravita India is another stock on Kotak’s list. The research house believes that Gravita’s operations in 22 states in India “provide sourcing advantages and substitutability”. Other factors working in its favor include regulatory tailwinds promoting recycling and the formalization of a reverse charge mechanism for metal scrap, analysts at Kotak wrote in a Sept. 30 note. Looking ahead, they expect Gravita’s earnings per share to grow 31.8% for full-year 2025 and 35.8% for 2026. It is also included in the iShares MSCI India Small Cap ETF (weighting 0.1%). Kotak has set a 12-month price target on the stock at INR 2,800, implying a potential upside of 38.2%. SH Kelkar and Company Kotak also has spices and spices supplier SH Kelkar and Company on its list. The research house describes the company as an “emerging player” with “the ability to drive double-digit revenue growth.” “SHK is small compared to major global players but has a strong reputation for its technological capabilities,” analysts at Kotak wrote in a Sept. 30 relaunch report. They noted that SHK’s other strengths include “good credit standing” ” technical capabilities and expansion into the global market. “Given its established and sticky relationships, we think growth still has a long way to go,” the analysts added. Sun Hung Kai’s shares, listed on India’s NSE and BSE, are up 103.3% this year. Kotak has a 12-month price target of INR 400 for the stock, which represents a potential upside of close to 35%. Gabriel India Meanwhile, asset manager Mirae Asset is betting on auto parts maker Gabriel India. The company, part of carmaker Anand Group, is a market leader in the manufacturing of ride control products such as suspension systems and shock absorbers. Mirae likes Gabriel’s stable revenue visibility and “constantly increasing content per vehicle” in the shock absorber segment, driven by new product launches. Another plus is that it is “a major beneficiary of rising skylight penetration in India, led by premiumization trends and import substitution,” analysts added in a recent report on Diwali Picks. Gabriel India’s shares, listed on India’s NSE and BSE, are up 13.4% this year. According to FactSet data, all eight analysts covering the stock have a “buy” rating, with an average price target of 581.25 Indian rupees. This gives it a potential upside of 30.1%.
As Diwali begins, analysts point out that 4 Indian stocks will rise more than 30% | Real Time Headlines
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