Kalyan Jewellers, JSW Energy; top 6 stocks to buy for Samvat 2081

As Diwali 2024 approaches, FundsIndia Broking has spotlighted six top stocks for the new Samvat 2081 trading year. Despite recent market corrections, these selections are geared for potential growth across diverse sectors, based on both technical and fundamental analyses.

Key Market Insights

The Indian stock market has seen significant corrections lately, with the Nifty 50 and Sensex posting their longest weekly losing streak in 14 months. Market challenges are fueled by global economic concerns, foreign investor sell-offs, and tepid corporate earnings. However, in Samvat 2080, the Nifty 50 reached 26,250, and the BSE Sensex hit 85,900, both logging 25% gains year-over-year. Analysts anticipate continued sectoral growth, particularly in financials, industrials, technology, and healthcare, with stable 12% CAGR earnings growth projected from FY24-26.

Top 6 Stock Picks for Diwali 2024

Kalyan Jewellers

Buy Price: ₹676 | Target Price: ₹846 | Potential Upside: 35%

Expanding its footprint in India and overseas, Kalyan Jewellers aims to open over 130 outlets in India and six internationally. With a capex budget of ₹250 crore for FY25, it targets stable revenue growth despite competitive pressures.

Central Depository Services Ltd. (CDSL)

Buy Price: ₹1,461 | Target Price: ₹1,845 | Potential Upside: 26%

CDSL benefits from its monopoly in India’s depository space, supported by growing retail market participation and significant technology investments aimed at enhancing its security and infrastructure.

JSW Energy

Buy Price: ₹670 | Target Price: ₹825 | Potential Upside: 23%

Known for its renewable energy initiatives, JSW Energy’s long-term contracts and projects are poised for growth as India’s power demands rise. Its ambition includes reaching 20 GW capacity and 40 GWh energy storage by 2030.

Federal Bank

Buy Price: ₹189 | Target Price: ₹235 | Potential Upside: 24%

With an expanding market presence and improving asset quality, Federal Bank is focused on high-yield segments and plans to add 100 new branches in FY25. It faces challenges from interest rate fluctuations but remains strong in deposit growth.

Mankind Pharma

Buy Price: ₹2,566 | Target Price: ₹3,158 | Potential Upside: 23%

Leveraging its position in pharmaceuticals, Mankind Pharma’s acquisition in women’s health supports its aim to lead in this niche. The company’s strategy includes diversifying into consumer healthcare and covering rural and metro markets.

Welspun Corp

Buy Price: ₹681 | Target Price: ₹840 | Potential Upside: 23%

Bolstered by a strong order book and recent expansion into India’s plastic pipes market, Welspun Corp has set a conservative target of ₹17,000 crore in revenue for FY25. Demand is driven by various infrastructure and government projects.

Note: These recommendations are insights from FundsIndia Broking. Investors should consider their own financial circumstances and seek advice from certified financial experts before investing, as market conditions can shift rapidly.