Diwali Special: 10 wealth-creation ideas for this ‘Muhurat’ trading
10 wealth-creation ideas for this ‘Muhurat’ trading
- India is becoming a hub for auto components manufacturing with major global auto companies like Volkswagen, Suzuki, General Motors, Mercedes, etc. setting up base in India.
- According to IDBI Capital Markets, given the attractive industry dynamics, the company is expanding capacities of certain products and setting up manufacturing facilities for newer product range to meet the rising demand for its products under the able leadership of Suresh Krishna (CMD).
- The brokerage house is bullish on Sundaram Fasteners with a target price of Rs 590.
- "At CMP, the stock trades at 19.3x its FY19E EPS and 11.5x FY19E EV/EBITDA. We continue to remain positive on the stock," Centrum Broking said.
ICICI Prudential Life Insurance
- HDFC Securities said, "ICICI Prudential has strong financials and a healthy balance sheet. It is currently trading at 3.7x P/EV for FY17, which is lower than the recent listing of SBI Life insurance at 4.1x P/EV for FY17. Our target 1-yr fwd multiple of 3.8x FY19E P/EV yields 12M target price of Rs 520," HDFC Securities said.
Dewan Housing Finance (DHFL)
- The stock currently trades at 1.6x FY2019E ABV. The brokerage house maintains an ‘Accumulate’ rating on the stock, with a target price of Rs 650.
- Bata’s retail business, which is more than four-fifths of revenue, grew by 15%. Thanks to 10% SSSG in Q1FY18, the additional flip in revenue could come from new store addition.
- IDBI Capital Markets believes that if the current trend is to sustain, the revenue and net profit could grow at a CAGR of 12 per cent and 24 per cent over the next two fiscals. "The stock, however, is trading at 52.2x its FY2019E earnings. Yet this does not capture the earnings growth potential, in our view,” IDBI Capital Markets said.
- India is significantly underpenetrated in the insurance vertical which will help private players including BAGIC and BALIC to continue gaining market share. Sharekhan believes BFL, BAGIC and BALIC have plenty of headroom to grow and can outperform the industry in terms of growth. Hence, the brokerage firm finds significant long-term value in BFS and expect its subsidiaries’ earnings momentum to continue.
- HDFC Securities has 12-month target of Rs 3,820 for Bajaj Auto.
- According to Kotak Securities, revenues from quartz division are likely to improve sharply going forward owing to new product addition as well as higher branding.
Aditya Birla Capital
- For FY17, aggregate revenue of ABCL stood at Rs 10,600 crore and profit before tax at Rs 1,150 crore. Centrum Broking said, "Going ahead, with presence in high growth businesses aided by a pan-India presence and healthy financials, the company is expected to perform well on consolidated basis."
Wish you all a very Happy Diwali and a Prosperous New Year! Happy investing.