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In the lead-up to the Diwali session, a host of brokerages had shared their top stock picks for the new Samvat.
On Mahurat trading day, CNBC-TV18 sat down with a battery of experts to understanding what they are going to be buying or placing their bets on going into the new year.
From Ramesh Damani to Atul Suri; Dipan Mehta to Nilesh Shah; Dharmesh Kant to Deven Choksey, here's what these market experts are betting as the new Samvat begins:
Ramesh Damani
Market veteran Ramesh Damani continues to remain bullish on the PSU space. Within that, he bets on the shipbuilding sector, where the government focus on shipbuilding has put the spotlight on these stocks. He bets on government capex as a theme.
"I think there's a lot of clamour for rare earths. Now in the world, everyone's realised the importance of rare earths. So, my feeling is that the government is going to direct a lot of CapEx in some PSUs to explore and process rare earths. So I would look at those companies will benefit from that," Damani told CNBC-TV18 on the Mahurat trading day.
Infrastructure development is also on sector where Damani is placing his bets, along with the smaller Pharma companies.
"I've turned quite bullish on recently is the pharma sector. In the midcap pharma, particularly the below ₹10,000 crore space, I'm finding a lot of innovative companies that own proprietary technology, intellectual property, that are building vaccines, building out antibiotics, building out, buying ANDAs. I think that we put a lot of fresh money into that. So I would suggest that if you want to look at Samvat to Samvat, but over a period of time, I think those two sectors will do well," he added.
Dipan Mehta
Dipan Mehta of Elixir Equities is betting on the AlcoBev space in India, and within that, Allied Blenders is its preferred pick. He and his clients have also invested in the company.
"They're moving up the value chain. More and more premiumisation is helping grow the margins, and a lot of the kind of brands and the kind of network which they have, the strength which they have, they're really playing to it," he said.
Another stock within this space, which is calls a "high-risk, high-returns" stock, is Tilaknagar Industries.
"I think if you just stick to these two companies in the alcobev industry, I think you should do pretty much fine. But as I said, I think this industry where you could expect earnings volatility because there's a lot of state government and local regulations which need to be followed. And those changes do tend to impact performance from time to time," he added.
Nilesh Shah, Envision Capital
Nilesh Shah of Envision Capital believes that smaller banks are well positioned to do well.
"They have essentially, obviously underperformed for some time, but I think the entire environment is just pretty much ripe for them. They probably could go through a Goldilocks kind of situation, NIMs bottoming up, credit off take, picking up and leading to rerating. I think that's an interesting segment," he said.
Shah also said that the other segment he is betting on is around decarbonization, electrification and the consumer opportunity. He spoke about his investment in Ather Energy, which is currently trading at record levels.
"That's one name which essentially has been very technology led. It believes in delivering a very strong consumer experience, and it has been able to kind of gain market share despite the fact that the big legacy players have come in and upped the ante as far as electric two-wheelers is concerned," according to Shah.
Dharmesh Kant, Chola Securities
Chola Securities' Dharmesh Kant expects Aurionpro Solutions to reach levels of ₹1,675 and also expect sthe stock to be re-rated. He spoke about the order that the company has won from SBI, which has opened the doors for other few banks.
"The second rational is the data centre play is also there. Around 20% of revenue comes through that, and that is architecture stack of the data centre. They just design the data centre and put that into play. They are gaining a good traction out there. And the third one is the entire transit, mobility and ticketing system," he said.
His second stock pick is Reliance Industries, where he sees the stock at levels of ₹1,650. "The second rational is the data centre play is also there. Around 20% of revenue comes through that, and that is architecture stack of the data centre. They just design the data centre and put that into play. They are gaining a good traction out there. And the third one is the entire transit, mobility and ticketing system. I do think if someone is willing to wait for two or three years, is a multi-bagger or doubler from the current levels," he added.
Bank of India is Dharmesh's third pick, where he sees the state-run lender to reach levels of ₹155.
"We like Bank of India the most, just because it's pretty undervalued. The valuation is around 0.6 times price to book value, multiples with advances going at 14% and credit cost, asset quality, everything falling into place. They are reducing one of the best in the industry as of now. Going forward, the two verticals which will do the catch up for the 16-17% kind of growth is one is retail, where they have 3% kind of AUM exposure right now, and the vehicles which they have 1.9 to 2% kind of exposure," he said.
"I think multiple rerating is around the corner for Bank of India, good solid stock to be there in your portfolio," he added.
Atul Suri
"In the last few years our biggest underweight in the portfolio has been banks. And in the last few months, our biggest overweight has been banks and financials. We feel that the biggest thematic play over the next three to four years is going to be the way banks and financials form a part of portfolios," Suri told CNBC-TV18.
Within the NBFC space, he prefers Paytm, which is also a part of his portfolio.
"What I find interesting about it is the fact that it’s a financial play. We know the kind of usage it has. I feel that this whole consumption story could play out, and the GST cut could also play out towards the end of the year. Plus, I really love platform businesses for the scalability they have. The numbers have started coming in, and it’s an interplay of multiple factors," he added.
