Diwali 2023 Picks - 10 Fundamental Stocks Listed By Motilal Oswal For Samvat 2080; Raymond, SBI And More

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Despite global uncertainties, India remains a shining star and is expected to maintain its outperformance. Nifty is trading at a 12- month forward P/E of 17.6x, which is at a 13% discount to its 10-year average, thus providing comfort. We believe that over the next couple of quarters, sector rotation could be an important driver along with the overall market uptrend. We also believe valuations will become an important factor in stock selection to drive outperformance in portfolios. We present below our key themes and ideas for Samvat 2080..Dalmia Bharat Ltd. (Current market price: Rs 2,105 / Target price: Rs 2,800 / upside potential: 33%)Dalmia Bharat is benefiting from: a robust increase in cement prices, particularly in the East, where prices have risen by Rs 40-50/bag, andan improvement in demand. We expect ~11% volume compound annual growth rate over FY23-26, and estimate Ebitda/tonne of Rs 1,045/ 1,150/ 1,250 in FY24/FY25/FY26 driven by a reduction in opex (operating efficacy and softening fuel prices)..Raymond Ltd. (Current market price: Rs 1,890 / Target price: Rs 2,600 / upside potential: 38%)Raymond in last two-three years has strengthened its leadership team and restructured its group. Demerger and promoter’s capital infusion strengthened balance sheet. It has a collection of established brands like Raymond, Park Avenue, ColorPlus, Ethnix which it plans to grow through capex-light franchisee mode..Kaynes Technology Ltd. (Current market price: Rs 2,455 / Target price: Rs 3,100 / upside potential: 26%) Kaynes is a prominent end-to-end and IoT-enabled integrated electronics manufacturer, with strong order book growth (96% CAGR over FY20-23) and a higher share of Box Build (~40% in H1 FY24) and printed circuit board assembly (54%).We estimate 41%/56% CAGR in revenue/adjusted profit after tax over FY23-FY26, driven by healthy order book and a better margin profile (increasing mix of high value order)..SBI - (Current market price: Rs 574 / Target price: Rs 700 / upside potential: 22%) Investment Rationale:SBI has strengthened its balance sheet by creating higher provisions. It raised its provision coverage ratio (including TWO) to 92% in Q2 FY24 and held a higher (~99.5%) provision coverage on corporate non-performing asset. Among PSU banks, SBI remains the best play, with a healthy PCR, tier-I of ~12%, strong liability franchise, and improved operating profitability..Click on the attachment to read the full report:.Diwali 2023 Picks - Ashok Leyland, Tata Motors, Bajaj Finance Among Top Nine Investment Ideas By KRChoksey.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Diwali 2023 Picks - 10 Fundamental Stocks Listed By Motilal Oswal For Samvat 2080; Raymond, SBI And More

We also believe valuations will become an important factor in stock selection to drive outperformance in portfolios.

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