Muhurat trading: Three multibagger stocks are hot picks this Diwali; gains over 130-235% in 2 years

Investors across India eagerly await the favorable one-hour trading Monday on the occasion of Lakshmi Pujan, also known as Main Diwali. Bets on major stocks are placed for future profits. Investments during the Diwali festival are considered a lucky charm for savings and investments. That said, three multibagger stocks are Muhurat picks. Of these three stocks, two are from the banking basket and the other from the heavy electrical equipment sector. These stocks can yield between 22-38% profit in the future.

On the evening of October 24, investors are allowed to trade in the capital marketequity derivatives, currency derivatives, commodities and other securities for one hour as part of: Muhurat trade.

According to the circular, the block deal session will start tomorrow from 5:45 p.m. to 6:00 p.m. Furthermore, the pre-market opening will take place from 6:00 PM to 6:08 PM, followed by normal market trading from 6:15 PM to 7:15 PM.

This week the markets will be closed on October 24 and 26. While trading will resume on October 25 and further on October 27 and 28.

Here is a list of three shares those are muhurat picks from LKP Securities.

Bank of Baroda:

The second largest bank in the public sector in terms of business has a strong consumer franchise following the merger with Dena Bank & Vijaya Bank and has been posting consistent profits for many quarters.

In its research note, LKP expects Bank of Baroda to see a 12% growth in net advances by the end of FY23, while it will further increase to 14% in FY24. The brokerage sees the bank’s net advances and deposits around 9.923 billion and 13,048 billion by the end of FY24. Furthermore, the ROE is expected to be 10.75% for FY23 and above 11.5% for FY24. Gross NPA will be below 6% by the end of the next fiscal year.

The brokerage has issued a ‘buy’ recommendation for a price target of 175 to the Bank of Baroda.

Last week, on Friday, Bank of Baroda ended at 143.55 each an increase of 1.95% on BSE. The stock also hit a new 52-week high of 144.90 each yesterday.

Taking into account the current market price and the price target of LKP, there is almost 22% upside potential in the bank.

Bank of Baroda is a multi-dredging stock. Over the past two years, the stock has skyrocketed nearly 237% as of now. The stock was below 43 levels on October 21, 2020.

In the current year, Bank of Baroda shares have risen more than 71% so far.

Federal Bank:

LKP’s note said: “With several key metrics peaking over several quarters, the Federal Bank, which posted its highest-ever quarterly net profit, has seen its share price rise 40% over the past year and we expect the Bank to that trajectory during the next year as well.”

The brokerage expects the Federal Bank to post 15% growth in advances toward FY23 and 16% growth toward FY24-end. ROE is expected to rise more than 13% towards FY23 and 14% towards FY24 end. Asset quality is expected to continue to improve, reaching close to 2% by the end of FY24.

LKP has set a price target of . on Federal Bank 180 and recommended as ‘Buy’. This would be a potential advantage of almost 36% over the current market price.

Share closed on BSE 132.60 each, up 1.77% on Friday. On this day, the bank reached a record high of 134.80 each.

The late Rakesh Jhunjhunwala was one of the Federal Bank’s largest investors. Together, he and his wife Rekha Jhunjhunwala own 75,721,060 shares or 3.6% in the bank.

The Federal Bank’s performance has been robust this year. So far, shares are up just over 52% on Dalal Street in 2022. Over the past two years, the stock has registered a huge increase of almost 133%. On October 21, 2020, the shares were close 57 level.

Federal Bank released its Q2 results, with PAT up 53% yoy to 703.7 crore, and net income interest (NII) up 19% yoy to 1,762 million euros. On September 30, 2022, the bank’s gross NPA was 2.46%.

Schneider Electric Infrastructure:

According to LKP, energy sector reforms along with initiatives such as grid modernization, renewable energy investments and Make in India have created a favorable business environment for Schneider.

Furthermore, the LTP note added that its strong presence in the infrastructure, energy, construction, industrial and IT segments, coupled with its ability to offer services beyond these segments, provides a distinct advantage to serve its customers. are further supported by strong parental support.

LKP has prepared a buy recommendation for a price target of 236 each for Schneider. This would be a potential advantage of more than 38% over the current market price.

Schneider shares closed on Friday 170.75 each lower at 1.36% on BSE.

So far, shares are up more than 56% on D-Street in 2022. While the shares have become a multi-bagger in 2 years with an increase of over 135% on BSE. On October 21, 2020, the shares were below 73 levels.

Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms, not Mint.

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