Diwali 2023-ICICI Bank, Maruti, UltraTech amongst top 10 picks by SBI Securities

During Samvat 2080 as per SBI Securities -India remains the Emerging Global Economic Powerhouse: They say that as per the latest World Economic Outlook – October’2023 report by IMF, India’s FY24 GDP growth estimate has been revised upwards by 0.2% to 6.3% and will be the fastest-growing economy in the world.

Also Read- Market outlook for Samvat 2080: Positives outweigh potential negatives

India’s Favorable macro set-up coupled with inclusion of Indian government bonds in JP Morgan Emerging Market Debt Index is to ensure stability in Dollar-Rupee over next 1 year, said SBI Securities. India’s macro set-up is on a relatively stronger footing with Debt to GDP ratio at 84%, no change in government’s borrowing program in 2HFY24 ahead of Lok Sabha election next year, robust tax collection – (1HFY24 direct and GST tax collection up 22% and 11% YoY respectively) and forex reserves to the tune of $583.5 bn (8-10 months of import cover).

Healthy Earnings Growth for Nifty50 companies coupled with decent valuations: Nifty50 companies are likely to report healthy 12.5% earnings CAGR (compound annual growth rate) during FY23-FY26 period. Nifty50 is trading at FY24 and FY25 estimated price to earnings multiples of 19.8 times and 16.9 times which is neither expensive nor cheap.

Strong domestic fund flows likely to support market at lower levels: Monthly SIP contribution in equity mutual funds is at record high (~ ₹16,000 cr in the month of Sep’23) and is up 22% YoY during the Apr’23-Sep’23 period at ₹90,312 cr. This coupled with demat account count breaching 12 cr mark will attract fund flows from DIIs and retail investors at lower levels, in case of any deep correction due to an unknown factor

Sector to focus on: As per SBI Securities sectors to focus on include Consumption, Auto, BFSI (Banks, AMCs, Insurance, NBFC, Stock market intermediaries), Real Estate, Travel & Tourism, Engineering & Cap Goods, Telecom and fast growing sectors like Renewables, EMS etc .

Also Read – Stocks to Watch Today- Coal India, LIC, ONGC, SAIL, Biocon, Sun TV network

SBI Securities Diwali Picks 2023

ICICI Banl Ltd – SBI Securities targe price of ₹1,081 indicated 18% upside from market price of around ₹915

Maruti Suzuki India Ltd– The target price of ₹12,000 indicates a 15% upside from market price of ₹10,391

Ultratech Cement Ltd – The target price of ₹9,800 indicated 16% upside from amrket price of ₹8,422

Polycab India Ltd– The target price of ₹5,877 indicates 19% upside from current market price of 4,922.

Kalyan Jewelers India Ltd– The target price of ₹364 indicates 26% upside from ₹289.

Praj Industries Ltd – The target price of ₹633 indicates 18% upside from ₹536

Titagarh Rail Systems– The SBI’s Target price of ₹988 indicates 30 % upside from ₹762 levels

Mrs. Bectors Food Specialities Ltd– Target price of ₹158 indicates 21% upside from current levels of ₹1120

Kolte-Patil Developers Ltd– The target price of ₹570 indicates 19% upside from current level of ₹479

Goodluck India Ltd– The target price of ₹1072 indicates 26% upside from current levels of Rs850

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Updated: 12 Nov 2023, 05:57 PM IST