Top 6 Stocks That Remain Strong Picks For The Festive Season. Here’s Why
The season of festivals has officially begun, with Ganesh Chaturthi being the most recent. Numerous holidays, including Karva Chauth, Navratri, Diwali, and Christmas, will be celebrated in the approaching months.
The demand for consumer goods is often high during these holidays. Currently, a number of catalysts have rekindled the passion surrounding these festivals. Having said that, you have the option of adding a list of six equities to your portfolio. Axis Securities‘ festive demand picks include these stocks.
Axis Securities stated earlier this week in research that festivals are times that “bring life to a state of enthusiasm, creating mental space and good vibes among all of us and making the whole climate favourable for the demand generation, particularly for the consumer products in the economy.”
After two years of muted due to periodic Covid-19 disruptions, the festive spirit is back to pre-Covid levels. The government of India’s extensive immunization push (which reached the astonishing milestone of 213 Cr by 4th Sep’22) appears to have reignited the excitement this year, and economic activity is gaining steam, according to the study.
Axis Securities claims that a number of catalysts are bringing up a fresh sense of exhilaration. Which are:
- The incredible resiliency of the Indian economy in FY23 to date, with an improvement shown in most high-frequency indicators.
- The incredible resiliency of the Indian economy in FY23 to date, with an improvement shown in most high-frequency indicators.
- As normal monsoons are restoring faith in demand recovery in rural India, improvements in urban demand are on the verge of improving rural demand, as well.
- After COVID, the contact-intensive services industry fully operational areas, such as travel and tourism, hotels, schools, and colleges 3.0. Additionally, all modes of public transportation, including buses, trains, and the air, are currently fully functioning, facilitating a quick and durable recovery in economic activity.
- With the recovery in the services sectors, remittances—one of the main sources of income in rural areas—will probably reach their pre-Covid levels.
- Improvements in commodity pricing and supply chain conditions offer a respite from excessive inflation. In this situation, the market narrative has changed from one of concern over inflation to one of cooling inflation expectations in the upcoming quarters.
Axis Securities’ statement stated, “Based on the above-mentioned themes, “We suggest the following equities because they will profit from strong festival demand: Maruti, Trent, Relaxo, SBI Cards, Bajaj Finance, and V-Mart.”
These six equities are thought to build wealth over the long run. The time horizon for these equities at Axis Securities is six to nine months.
In the holiday season, Axis Securities recommends these six equities as outstanding picks:
Maruti Suzuki
Maruti Suzuki shares closed at 8,945.70 on the BSE on Friday, up 158.05 or 1.80%. The market value of the company is roughly Rs. 2,70,231.76 crore.
The shares have increased by at least 31.5% in a year. On September 9 of last year, the shares were trading at about 6,801 each. Sales increased 50.52% year over year to $25,286.3 crore. Operations revenue for the quarter under review totalled 26,499.8 crores, up 49% YoY but down 0.8% QoQ.
The company reported a net profit of 1012.8 crores for the quarter ending in June 2022, an increase of 129.76% over the equivalent quarter of the previous year’s net profit of 441 crores.
The company has a buy recommendation from Axis Securities and a target price of 9,801 per share.
Bajaj Finance
The NBFC’s shares decreased by 74.45 or 1.03% on Friday, closing at 7,183.55 per share on the BSE. The market capitalization of the business is about 4,34,913.12 crore.
The performance of Bajaj Finance shares has decreased by just over 3% since September 9 of last year as a result of the stock experiencing a tumultuous year. The shares have, however, made a significant comeback during the past three months, with gains of around 22%.
Bajaj Finance had a successful June 2022 (Q1FY23) quarter, with net profit increasing significantly by a staggering 159% to 2,596 crores from 1,002 crores in the same quarter the previous year. From 4,489 crores in Q1FY22 to 6,638 crores in the quarter under review, net interest income (NII) increased by 48%. In comparison to Q1FY22, new loans booked increased by 60% to 7.42 million, or 7.42 million.
The stock’s target price was set by Axis Securities at 8,250 per share.
SBI Cards and Payment Services
SBI Card shares on the BSE ended the day Friday at 943.60, down 1.69%. The market value of the NBFC is roughly 89,011.67 crore.
Despite the stock’s over 15% year-over-year decline. However, the shares have made a strong rebound and increased by more than 22% over the last three months of this year.
SBI Card’s net profit increased by 105.80% during Q1FY23 to $626.91 crore from 304.61 crores during the same quarter last year. In Q1FY23, operating revenue increased by 31% YoY and 9% QoQ to $3,100 crore. In the first quarter of this fiscal year, interest income totalled 1,387 crores, an increase of 20% YoY and 10% QoQ.
1,050 has been set as the target price by Axis Securities.
Trent
Trent shares decreased by 1.98% to close at 1,379.35 on the BSE. The market value of the company is roughly 49,034.16 crore.
The shares have increased by almost 35% in a year.
In comparison to a loss of 138.29 crores during the same period last year, the company reported a consolidated net profit of 114.93 crores in the first quarter of FY23. Operations generated revenue of 1,803.15 crores, a significant increase over Q1FY22’s 491.99 crores.
The stock has a 1,530 per share target price set by Axis Securities.
Relaxo Footwears
Shares of Relaxo Footwears closed on Friday at 1,012.90 on the BSE, slightly higher. The market value of the company is about 25,213.72 crore.
The shares have increased by over 3% over the past three months.
The company reported a net profit of 38.67 crores in Q1FY23 as opposed to 30.96 crores in Q1FY22. The revenue from operations was higher at 667.15 crores than the Q1FY22 average of 497.13 crores.
The stock has a 1,120 per share target price set by Axis Securities.
V-Mart
V-Mart shares finished at 2904.30 on the BSE on Friday, up 8.35 or 0.29%. The market value of the business is roughly $5,741.33 billion.
In comparison to a deficit of 28.71 crores in Q1FY22, the company reported a net profit of 20.45 crore in Q1FY23. In Q1 of FY23, operating revenue increased to 587.88 crores from 177.41 crores in Q1 of FY22.
The stock has a 3,350 per share target price, according to Axis Securities.
Edited by Prakriti Arora
