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ITC, IDBI First Bank, Polycab And More - Top Muhurat, Samvat 2079 Stock Picks: Axis Securities

Samvat 2079 now looks much brighter and more promising. The Indian economy stands in a sweet spot of growth.

<div class="paragraphs"><p>(Photo: Vishwas Bangar /Unsplash)</p></div>
(Photo: Vishwas Bangar /Unsplash)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Axis Securities Report

While the country’s macro set-up is positive, the fundamentals for Indian corporates have also improved. Profitability across the board has improved significantly. The cumulative and rolling net profit of the NSE 500 universe for the last four quarters (till Q1 FY23) touched an all-time high of Rs 10 lakh crore and loss-making sectors, too, have turned positive and contributed notably to the net profitability. Moreover, after a muted performance for several years, return on equity for the broader market is improving as well. Thus, in light of these positive attributes, we firmly believe that the outperformance of Indian equities seems highly sustainable in Samvat 2079.

ITC Ltd. - ITC is currently trading at 18 times FY25E earnings per share, 4-5% dividend yield provides a huge margin of safety compared to its peers. Moreover, the recovery in the cigarette business and uptick in agri, hotels, and paperboard in the near term makes ITC a better play in the entire fmcg pack where valuations are high.

IDFC First Bank Ltd. - With a strong and granular deposit base, IDFC First Bank is focused on growing its loan portfolio wherein the retail book is expected to drive the same. We believe the stock is poised for re-rating given the continuous improvement in the bank’s asset quality, its strategy to improve operating performance with expected operating leverage and superior return ratios over FY23-25E.

Polycab India Ltd. - Polycab has maintained a leadership position in the organized cables and wires segment with a market share of over 24%. Moreover, with superior financial strength, expansion of distribution network into tier-II, and tier-III cities, and strong brand recall, it is poised to gain market share from unorganised players in both wires and fast moving electrical goods segments.

Click on the attachment for full list of Axis Securities' Diwali stock picks:

Axis Securities Diwali Muhurat Picks-2022.pdf

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