Diwali 2023 stock picks: Bonanza Portfolio suggests 7 stocks to buy on Dhanteras | Stock Market News (2024)

Unlike other IT companies, KPIT's business has high growth and revenue potential as EV, connectivity and IoT are the future and all major OEMs are focusing on them. KPIT has invested in various technologies for OEMs and intended to be remain leader in these areas. Increased focus on EV, particularly in the US and Europe, is creating new growth opportunities for the entire automotive sector and particularly for KPIT.

KPIT share price is currently trading at 65.4x/51.2x FY24E/FY25E EPS, respectively. We are valuing KPIT at 57.0x FY25E EPS of Rs.25.70 to arrive at a BUY rating with target price of Rs.1,462.00, an upside of 11%.

2] MAS Financial Services: CMP, ₹900, stop loss ₹1192.

MASFIN is trading at a Rs. 900 which translates to a PB multiple of 3.0x against the which is below its 5-year median of 3.6x. When compared to the industry PB multiple of 2.7x, MASFIN is priced are significant premium. It is our understanding based on the strong network MASFIN has created coupled with the robust credit policy and macroeconomic tailwinds in the MFI sector, we believe that is substantial growth in prospect. Further, MRHMFL would be a surprise performer and positively contribute towards the overall growth of the company. Hence value MASFIN at 3x FY25E Book value.

3] V-Guard Industries: CMP ₹285, target ₹371.

The stock is currently trading at a PE of 66.0x against the median of 50.7x and industry PE of 42.7x. Additionally, the EVEBITDA is currently at 41x against the median of 32.2x. This indicates an overvaluation that is enjoyed by the company due to its robust competitive position, financials and growth story.

4] Vedant Fashion: CMP ₹1,334, target ₹1528.

We expect a ramp-up in the performance in H2 due to Weddings and the Festive season coupled with a wide product portfolio. VFL has a healthy margin profile, led by Asset Light – Franchise model, with strong cash flows and robust return ratios makes it a good pick. VFL currently trades at a premium of 70.5x PE. We ascribe a PE of 70.5x on FY25E EPS of Rs. 21.68 per share, arriving at a Target Price of Rs. 1,528 per share with an upside of 15%.

5] TVS Motor Company: CMP ₹1,647, target ₹1,920.

The stock is currently trading at a PE of 53.6x against its 3-year median of 44.7x and industry PE of 40.2x. We believe traction in volumes will increase, management consistent focus in improving EBITDA margin will drive growth commanding a premium valuation of 49x FY25E EPS.

6] Technocraft Industries: CMP ₹2,240, target ₹2,600.

Technocraft has reported extremely well on the growth drivers and has a superior outlook, hence we believe the following valuation is reasonable. The stock is currently trading at 16.8x FY24E EPS and 15.6x FY25E EPS, respectively. We are valuing Technocraft Industries at 19.5x FY25E EPS of Rs. 143.73 to arrive at a BUY rating with a target price of Rs. 2600, an upside of 16%.

7] Bank of Maharashtra: CMP ₹43.40, target ₹56.

Currently stock is available at a reasonable valuation of P/BV 1.85x which is justified because of growth that BOM had delivered and improvement in overall operation that bank is doing. we can expect 29% upside potential in BOM valuing it at 1.80xP/BV of FY25E.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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First Published:

10 Nov 2023, 12:42 PM IST