Diwali Muhurat trading picks: Max Health, Anupam Rasayan among Anand Rathi's top stocks

Pranati Deva
Updated: 24 Oct 2022, 05:27 PM IST
TL;DR.

Indian markets have lost around 2 percent since Diwali last year amid fears of recession, consistently high inflation, worsening Russia-Ukraine crisis, FII outflows and strengthening of the dollar. However, Indian equities remain a long-time favourite for brokerages despite the heading. Welcoming Samvat 2079 and wishing all investors, a Happy and Prosperous Diwali, brokerage house Anand Rathi has come out with 6 top stock picks for Diwali with an upside potential of up to 30 percent. Let's take a look

Anupam Rasayan: The brokerage has a target price of ₹940 for the stock indicating a potential upside of 30 percent. As per the brokerage, the company is targeting the launch of seven new products in FY23 and has a pipeline of 90 products at various levels of R&D and pilot scale. With the completion of a major capacity expansion exercise the company is set to ramp up its production in the near term, it added. Anand Rathi believes the firm with a strong pipeline of products, ramp-up of new capacities and competency in key complex chemistries could continue to grow at high rates.

Max Healthcare: Anand Rathi sees this stock surging 18 percent to ₹504 in 1 year. Max Health continues to record healthy performance with considerable improvement in Average Revenue Per Occupied bed (ARPOB), maintaining its industry-leading margins and strong balance sheet, said the brokerage. The company reported the highest ever EBITDA per bed in Q1FY23, which is expected to improve further with the favourable payor mix change in the coming years, it added.

Tarsons Products: The brokerage has an upside of 21 percent for the stock with a target price of ₹974. Tarsons is a leading labware equipment player providing high-quality and cost-effective plastic labware products across the Academia/Research and Pharmaceutical industries with a growing market share and presence in the high-margin exports market (29% of FY22 revenues), noted the brokerage. A surge in outsourcing by pharmaceutical companies and increasing awareness and testing requirements in the diagnostics space can drive further growth, predicted Anand Rathi.

State Bank of India: Anand Rathi expects India's largest public sector lender to jump 23 percent to ₹650 in 1 year. According to the brokerage, SBI is witnessing strong advance growth with an increase in retail consumption, corporate demand and agriculture improvement due to monsoon and Government CapEx. SBI has a diversified loan book, one of the best liability franchises with a CASA mix of 45% and an improving balance sheet, said the brokerage.

Mrs Bectors Food: The brokerage has a target price of ₹455 for the stock, implying a potential upside of 21 percent. With Branded biscuits, Breads & Buns & Chain QSR Market expected to grow at a CAGR of 12%/11%/29%, the brokerage expects a huge runway of growth ahead for Mrs.Bectors Food owing to rising distribution reach enhancing product portfolio and deepening relationships with leading QSR players to capture further growth.

Linde India: Anand Rathi has given a target of ₹3,800 for the stock, indicating a 21 percent upside in 1 year. Linde India is all set to register good growth driven by increasing manufacturing activities from the downstream industry like steel, cement, etc, new capacities coming on-stream and Synergies benefit from JV with Praxair India, said the brokerage. The Company also has a debt-free Balance sheet and a good financial profile, it added.

First Published: 23 Oct 2022, 11:26 AM IST