The Indian equity market finished in the green on Wednesday, as traders awaited the US Fed's policy decision later in the evening. The Sensex increased 89.64 points to 72,101.69, while the Nifty50 rose 21.65 points to 21,839.10 on the day.
Ahead of Holi 2024, here are the nine Holi seections from Equinomics Research's G. Chokkalingam and Chandan Taparia, CMT, CFTe Derivatives & Technical Analyst at Motilal Oswal.
Here's an overview of each of these stocks from various sectors, as well as the investment logic behind them.
Holi Picks by G. Chokkalingam
Karnataka Bank
The stock is selling at just 0.6 times adjusted book value, the lowest among the traditional private sector banks. Chokkalingam believes it deserves a one-time book value for next year. He set a target of Rs 337 for next year. This is the only old private bank with a Rs 10 face value. The bank will reward investors through bonus issuance and stock splits.
The bank's profit increased from Rs 348 crore in 2013 to Rs 1300 crore in the current year. The bank's net NPAs fell to 1.55% in the December quarter, from 3.18% in FY21. The promoter's share is zero. The bank claims to have never lost money in its 100-year history. In barely three years, it has paid dividends. In recent years, institutional holdings have increased to 41%. Chokkalingam expects it will rise in the future.
Chokkalingam also claimed that he personally owns Karnataka Bank stock.
Jio Financial Services
Reliance has evolved as a mini-economy. According to G Chokkalingam, Ji Financial will likewise become a market leader in its area. In the short to medium term, he sees the stock reaching Rs 420. The stock's long-term potential ranges from Rs 700 to Rs 1,000.
This company has inherited more than Rs 1 lakh crore in Reliance Shares, according to Chokkalingam, and it should be able to develop a book of Rs 10 lakh crore utilizing Reliance Shares within the next 5-7 years. The book value is approximately Rs 182 per share. The stock trades for 1.9 times its book value. If we assume merely three times in the next five to seven years, the stock might rise to Rs 700 to Rs 1000 in the long run, according to Chokkalingam.
Indoco Remedies
Chokkalingam's objective is Rs 440 for the firm. It focuses on domestic formulation and branded sales. The company's balance sheet is decent, and management is competent. It is currently one of the safest small and mid-cap stocks available.
Bombay Burma Trading Company
The stock is appropriate for investors who are willing to take chances in small and mid-cap stocks. It is Britannia's holding corporation. One might buy with a goal of Rs 2200. Chokkalingam predicts four short-term triggers for the rise. It offers an 80% reduction on the value of investments in Britannia.
In the December quarter, the company's original promoters (a British family) transitioned from stockholders to promoters. Their membership in the promoter group instills confidence in the governance of Bombay Burmah. The corporation owns a 44% stake in Bombay Dyeing, which sold land for Rs 5000 crore to relieve debt. This helped Bomaby Burmah improve its overall performance.
Previously, they lost a lot of money with GoAir. Bombay Burmah has now written down all of its exposure to GoAir for the December quarter. This is a good for the company. The company's financials have improved as a result of Bombay Dyeing's improved performance and the elimination of GoAir losses. In the December quarter, the firm's consolidated earnings increased by 189% to Rs 457 crore from Rs 158 crore the previous year.
Chokkalingam reported that he has this stock in his portfolio.
HDFC Life
The stock has fallen more than 20% from its peak. The company has grown its insurance and new premium business by double digits, which is expected to continue in the future. The merger of HDFC Ltd and HDFC Bank bodes well for the company because HDFC consumers can now be solicited by HDFC Bank to become insurance clients.
Chokkalingam targets Rs 720 for HDFC Life shares.
Holi Picks by Chandan Taparia
Maruti Suzuki
The stock has risen 15-16% in the last two to three months. Despite the recent market slump, the stock has performed well over the last six sessions. It has given a consolidation breakthrough and is poised for the next stage of the rise. It has key support at Rs 11,400, and the price target range for the large cap stock is Rs 12500 to Rs 13000.
Zomato
The online food delivery provider's shares has risen by 28% in recent months. Taparia stated that the stock has a support of Rs 153 and a goal of Rs 174.
DMart
After 14-15 weeks of consolidation, the stock has broken out. On the yearly chart, the stock has finally broken out of its restricted range after three years. Taparia forecasts the stock to rise 10% to 15%, with a target price of Rs 4,444 and a stop loss of Rs 3750.
Cummins
Taparia feels the stock is primed for a 20-25 day consolidation breakout. The stock maintains its key moving averages. One might set a stop loss of Rs 2650 with a goal of Rs 2950.
