Diwali, the festival of lights that reflects the victory of good over evil or light over darkness, is also the origin of the traditional Hindu accounting year. Traditionally, new accounting books are started by businessmen, and puja of the books is done to invoke the blessing of Goddess Lakshmi.
The stock traders and investors mark the occasion by Muhurat Trading, a customary one-hour trading session held every Diwali. This symbolic ritual that is considered to be auspicious, goes back almost to the beginning of the Indian Stock Exchange BSE in 1957 and thereafter NSE in 1992.
Let’s talk about Muhurat Trading
The Indian word Muhurat marks ‘an auspicious time’. The Hindu calendar, Samvat specifies an auspicious one-hour trading period for particularly the Indian stock market that is carried out on the day of Diwali. It is a popular belief in the Indian stock traders and investors, that buying and selling stocks at this auspicious time can double your wealth and bring you unlimited prosperity throughout the year.
The Top 9 stocks in Muhurat Trading
Here in this article, we will talk about the top 9 stocks to invest in this Samvat 2078 Muhurat Trading on 4th November 2021. Starting from ICICI Bank Limited to Phillips Carbon Black Limited, all these stocks are valuable with high returns and are sure to bring prosperity to your home.
1) ICICI Bank Limited
CMP – 747.20, Target Price – 874, Upside – 17%.
ICICI bank is hitting the market with CMP: 747.20, a target price of 874, and an upside of 17%. At the end of June 2021, the total turnover of the bank has increased at a price of 16%YOY to Rs. 16,64,822 crore. Also at the end of June 2021, deposit growth has increased by 16% at Rs. 9,26,224 crore. Net Interest Income (NII) increased by 18% YoY to Rs 10,935.77 crore in Q1 FY22 from Rs. 10,431.13 crore in Q4 FY21.
The bank has planned further digitalization and this will attract even more customers.
2) State Bank of India
CMP – 488.45, Target Price – 577, Upside – 18%.
State Bank of India is beating the market with CMP: 488.45, a target price of 577, and an upside of 18%. Net interest income (NII) increased by 19% YoY at Rs. 27067.00 crore for the quarter ended March 2021. Net Interest Margin (NIM) of the bank refined to 3.04% in Q4 FY2021 from 2.97% in Q4 FY2020.
The bank’s upward inclining turnover data is showing gradual enhancement quarter by quarter.
3) DLF Limited
CMP – 415.00, Target Price – 474, Upside – 14%.
DLF Limited is leading the market with CMP: 415.00, a target price of 474, and an upside of 14%. It is predicted that the stock will see a price boom of Rs. 474 in an 8 to 10 months time frame on a target P/BV of 3.05x and FY23 BVPS of Rs.155.30. A sudden technology up-gradation made new products sales booking of Rs542 crore during the quarter.
DLF Limited has planned further digitalization to attract premium customers. DLF Limited will maintain its exceptionally strong financial performance and strong market position in various segments in which it operates. DLF has developed 153 real estate projects and constructed an area of approximately 330 million square feet.
• Slowdown of economy
• Regulatory, environmental, and taxation risk
4) Endurance Technology Limited
CMP – 1722.95, Target Price – 2047, Upside – 19%.
Endurance Technology Limited is operating with a CMP: 1722.95, a target price of 2047, and an upside of 19%. The plant has a yearly installed capacity to produce 400,000 nos. of single-channel ABS modulators. The company pays attention to control costs, working capital, and CAPEX, to further establish its balance sheet. It is presumed that the stock will see a price target of Rs.2047 in 8 to 10 months’ time frame on 3 yrs average P/Ex of 33.14x and FY23 EPS of Rs.61.78.
5) Prestige Estate Projects limited
CMP – 441.15, Target Price – 529, Upside – 20%.
Prestige Estate Projects limited is hitting the market with CMP: 441.15, a target price of 529, and an upside of 20%. It sold 3.54 million square feet area in the second quarter compared with over 1.77 million sq. ft. area in the corresponding period of the previous year. The Group has completed 249 award-winning projects with a developable area of 135 Mio. sq. ft. and has 47 ongoing projects across segments, with a total developable area of 59 Mio. sq. ft. The acquisition of new geographies will help the company to reach the next level.
6) Welspun India Limited
CMP – 152.10, Target Price – 193, Upside – 27%.
Welspun is scoring amazingly in the market with a CMP: 152.10, a target price of 193, and an upside of 27%. On a segment-wise basis, bath linen sales volume grew 51% YOY, bed linen sales volume soared 114% YOY, and rugs and carpets sales volume climbed 219% YOY. Consolidated EBITDA grew 93.1% to Rs. 459.80 crore in Q1 FY22 as against Rs. 238.10 crore in Q1 FY21. EBITDA margin improved to 20.6% during the quarter as compared to 19.6% during Q1 June 2020. In Q1 FY22, Welspun India spent Rs 172.20 crore. It is forecasted that the stock will see a price target of Rs.193 in an 8 to 10 months time frame on target P/BVx of 4.70 and FY23 BVPS of Rs.41.17.
7) KEC International limited
CMP – 459.35, Target Price – 555, Upside – 21%.
KEC International Limited is hitting the market with CMP: 459.35, a target price of 555, and an upside of 21%. KEC is continuing to work on projects across various segments with a key focus on transmission and distribution (T&D; 58% of FY21 order book), railways (24%), civil (including metro, 16%), cables (1%), and smart infrastructure (1%). Further, recently the company received orders worth Rs. 1157 crores out of which 663 crores for T&D, 220 crores for the railway, and 173 crores for Civil. KEC International has a face value of Rs.2.
In FY21, the company’s civil business has already grown three times to Rs 1,080 crore, up 187 percent from Rs 376 crore, and the company is investing Rs 70-80 crore since last year as CAPEX.
• High competitive risks
• Risk of high working capital intensity in the EPC business
8) Phillips Carbon Black Limited
CMP – 241.85, Target Price – 294, Upside – 22%.
Philips Carbon Black is hitting the market with CMP: 241.85, a target price of 294, and an upside of 22%. Post completion of Mundra CPP in Q1 FY`22, the company expects the commissioning of power plants in Palej (7MW) and Kochi (7 MW) over the next couple of quarters. Specialty black sales volume raised to 7,283 MT in Q1 FY22.
Carbon Black realizations came in at Rs 90274/tonne, up 32.3%/20.2% YOY/QOQ, mainly on account of higher crude prices. Today, it is the biggest carbon black manufacturer in India (603,000 MT of annual production capacity) and a powerful global player with a significant customer base in 45+ countries and 6 offices outside India.
• Economy slowdown
• Environmental, Taxation, and Regulatory risks
9) Larsen and Turbo
CMP – 1846.40, Target Price – 2120, Upside – 15%.
L&T is hitting the market with CMP: 1846.40, a target price of 2120, and an upside of 15%. During Q1 FY22, consolidated net sales (including other operating income) for the quarter ended June 2021 has increased 38% to Rs 29334.73 crore. The operating profit margin has expanded by 320 bps to 10.8%, leading to a 96% rise in operating profit to Rs. 3171.49 crore and Net Profit attributable to owners of the company increased 287% to Rs. 1174.44 crore.
According to Larsen & Toubro’s classification, the value of the said orders lies between Rs. 2,500 crore to Rs. 5,000 crore.