Diwali 2024 stock picks: Inox Wind, KPIT Tech, 7 more counters to buy for Samvat 2081

Oct 27, 2024, 04:01:10 PM IST

As we are about to begin Samvat 2081 in less than a week, Axis Securities has identified nine stocks for this Diwali that could deliver handsome returns for investors. The global markets will take cues from the US election, the Chinese economy, activity during the ongoing festival season, oil prices, and fund flows amid bouts of volatility. Here’s what it recommends:

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Gravita India is a prominent player in the global recycling industry, specializing in the recycling of lead, aluminum, plastic, and rubber. Industry tailwinds and the company’s growth plans are expected to lead to revenue/EBITDA/EPS growth of 26%/32%/32% CAGR over FY24-FY27E.

ANI

Arvind SmartSpaces Limited is engaged in the development of real estate across residential, commercial, and industrial projects. With total cash visibility of Rs 1,100 crore, it aims to achieve guidance of 30%-35% growth in business development. The company is set to launch its Mumbai and Bannerghatta projects.

IANS

Inox Wind Ltd is an integrated wind energy solutions provider engaged in the manufacturing and sale of wind turbine generators (WTGs). We assign a target P/E multiple of 35x to our FY26 EPS estimate after adjusting for the minority stake in Inox Green Energy Services and Resco Global (7%).

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KPIT Technologies Ltd (KPIT) is a leading global pure-play Engineering, Research & Development (ER&D) services company engaged in product development for both the passenger car and commercial vehicle segments. Axis values it at a sustainable premium P/E multiple of 58x on FY26 EPS.

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The company is primarily engaged in road construction and is a major player in the EPC segment. Its growth will be driven by a strong order book position, improved order intake, diversification into related sectors, and the government’s focus on developing the country’s infrastructure.

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AU Small Finance Bank (AUSFB) is a retail-centric small finance bank offering financial products to low- and middle-income individuals and businesses. AUSFB is calibrating growth while prioritizing profitability, and we expect the bank to deliver a RoA of 1.6% in FY25E.

Agencies

Lupin is a prominent global pharmaceutical leader based in Mumbai, distributing its products across over 100 markets. It is well-positioned to capitalize on emerging opportunities, with upcoming approvals for Tolvaptan and Xyway expected to enhance revenue streams in the second half of the year.

Agencies

Indian Hotels Company Limited (IHCL) is a top player in the Indian hospitality industry, operating iconic brands like Taj. It is strategically leveraging an asset-light approach to expand its portfolio while minimizing capital expenditure. We expect higher occupancy rates in the coming quarters.

iStock

UNO Minda is a Tier 1 supplier of automotive solutions to leading Indian and international OEMs. With a strong pipeline of order wins and expanding product offerings in the EV space, the company is well-positioned to achieve significant revenue and profitability growth by FY26.

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