Ganesh Chaturthi special: Four stocks you should have in your kitty
Generally, the festive season has some of its impact on stock markets and in same ways positively, as industries see a boost in their demand, which makes investors optimistic on their share prices spiking.
Currently, India celebrates an auspicious occasion, Ganesh Chaturthi, which has kicked off from today onward and will continue for a period of 11 days. Ganesh Chaturthi is taken as a major festival in India and is celebrated with great fanfare especially in Maharashtra. In various parts of India, large statues of Ganesha are being installed and is celebrated with high enthusiasm. Generally, the festive season has some of its impact on stock markets and in same ways positively, as industries see a boost in their demand, which makes investors optimistic on their share prices spiking. However, investing in equities has its own ups and downs, especially due to its inherent volatility and sentiment driven performance.
If you are planning to invest in stock markets during this occasion, then you do not want to miss out on these four stocks, which are some of the best picks in the markets.
Zee Business brings to you a list of four stocks in which you can invest and avail better returns during Ganesh Chaturthi.
This stock is top in the list when it comes to invest in during this festival. Firstly because it has strong business portfolio ahead and its growth outlook looks good as per analysts.
Bank of America has raised target price to Rs 1,600.
Abhishek Navalgund and Vijay Chugh, Research analysts at Nirmal Bang said, “We believe that Rs 105,000 mn QSR sector in India is at an inflection point. Various industry reports indicate a 25% CAGR over the next five years. The management sounded confident about expansion after setting up the foundation in FY18. JUBI’s key thrust on product quality, innovation, affordability and digital initiatives will drive overall business growth going forward.”
The duo added, “Pizza is still an underpenetrated category in India and the market leader will continue to expand the market and gain share with its focus on core strategy. We have retained Buy rating on JUBI with a revised target price of Rs 1,630 (from Rs 1,620 earlier) based on FY20E EPS and keeping the earnings multiple unchanged (50x), indicating an upside of 15% from the CMP.”
In a year, Jubilant Foodworks has grown by a whopping 141.04% with an high of Rs 1,575 per piece last month.
This company is believed to be best pick because it is a consumer durable finance company. Be it either two-wheeler loan or home loan or even monsoon-related sectors, the demand of this company is expected to rise further.
7.5 crore investors are already invested in Bajaj Finance at a share price of Rs 2000. The company is seen to increase its investor base.
ICICI Direct has raised target price to a massive Rs 3,050 with a "maintain buy" recommendation.
In a year the company has risen by 97.77% with an intraday high of Rs 2,995.10 per piece last month.
ICICI Lombard General Insurance
Third in the list would be this ICICI Bank backed general insurance company which is the 4th largest non-life insurer (8.2% GDPI market share in FY18) and a leader among private players (18.9% share ex-standalone health).
As per JM Financials, ICICI Lombard is well-positioned to deliver 15% GDPI growth – in line with the industry – over FY18-20E ,enabled by i) structural factors: a) non-life under-penetration and low density as well as b) urbanisation and rising asset ownership; ii) granular focus on niche segments within Motor and Health insurance and iii) a strong, productive distribution network.
Analysts at JM Financial said, “We value the stock at 28x Mar’21E EPS for a PAT CAGR of 24% over FY18-21E and ROE of 21% by FY21E. We initiate with a BUY rating and a TP of Rs 1,050.”
This week ICICI Lombard share price touched an all-time high of Rs 927.20 which took its overall performance higher by nearly 50% in a year.
This healthcare service provider company is also one of the best option for investment in equities. A leadership position, national footprint and multi-pronged healthcare delivery model make Apollo one of the stronger EM healthcare models.
Nitin Agarwal, analysts at IDFC Securities said, “ Post a prolonged weak earnings phase emanating from an aggressive expansion plan, earnings recovery is visible from H2FY18 onwards driven by improvement in mature hospital profitability.”
According to Agarwal, the new hospital cluster has begun to contribute positively, led by improvement in Navi Mumbai unit. While the ASAP business will sustain growth momentum, reduction in operating losses at the retail health platform (AHLL) too should aid growth in consolidated profitability.
Therefore, Agarwal adds, “We expect that Apollo may initiate measures to unlock value in the SAP business over the next 12-18 months, which should be a positive trigger for Apollo’s stock. Maintain Outperformer with a target price of Rs 1,483.”
In a year, Apollo’s share price has surged by 38.51% with an high of Rs 1,262 per piece.
Hence, if you are searching for equities to add in your kitty, you might want to have a look at the above mentioned four stocks while making the investment decision.