5 Best Stocks for Diwali 2024: Sherkhan has advised buying 5 best stocks this Diwali, which can make a huge return by the next Diwali. These stocks mentioned by the brokerage firm Sherkhan are fundamentally very strong and have also been advised to be bought with a 1-year perspective. Talking about the mood of the stock market today, the mood of the market was mixed. Nifty 50 rose marginally by 0.07% and stood at 24,998.45, while the Sensex rose 0.18% to reach 81,611.41. However, the Nifty IT sector has seen a decline of 1.25%. If seen, the Market Mood Index also shows fear among investors, which suggests caution in trading decisions. Overall, while some sectors like banking show strength, profit booking and volatility prevail, with support for Nifty 43 around 24,700. Keeping all this in mind, today we have selected 5 best stocks for Diwali 2024 that can make a good profit throughout the year. Investors who need a good stock to invest their money in and are looking for great returns from them can keep an eye on these stocks. Let us know which stocks are the best.
Best Stocks for Diwali 2024
5 Best Stocks for Diwali 2024: Sharekhan brokerage firm has given a buy recommendation on 5 stocks in May. We are seeing strong signals from global markets, and their effect is visible on the Indian stock markets. If we talk about domestic sentiments, the earning season is ongoing, during which the results of the second quarter (Q2FY25) of the companies are being reported. After these results, many stocks are becoming attractive for long-term investment by big firms and experts, providing small investors with a good opportunity. This allows us to make a significant profit. Based on market sentiments and results, brokerage firm Sharekhan has advised BUY on 5 stocks with strong fundamentals from the perspective of the next, Diwali stocks. These include Axis Bank, Infosys, Nestle India, Indian Hotels, and Isgec Heavy. In these, investors can expect a great return of up to 20 percent.
There are 5 Best Stocks for Diwali
Let us now look at some selected Best 5 stocks for Diwali 2024, which will increase rapidly within a year.
- Infosys
- Indian Hotels
- Nestle India
- ISGEC Heavy
- Axis Bank
1. INFOSYS
Here are the first of the 5 Best Stocks for Diwali 2024, which is Infosys, operating primarily in IT services and consulting, focusing on delivering solutions to large enterprises across various sectors such as finance, healthcare, and retail. Its business model leverages a Global Delivery Model that combines onshore and offshore resources for cost-effective service delivery. Infosys has seen stable but slower growth than its broader IT industry. Over the past five years, its earnings have grown at an average annual rate of 7.3%, while the IT sector has experienced growth of 21.1%. Revenue grew 10.3% annually, with a return on equity of 32.1% and a net margin of 17.2%. Recent performance indicates a slight deceleration in earnings growth, with earnings growing at 6.3% last year, which is lower than the industry average of 12.9%. Despite these challenges, Infosys remains a significant player in the IT services market, focusing on innovation and strategic partnerships for future growth. For these reasons, the brokerage firm Sharekhan has given a BUY recommendation on Infosys. The target price is Rs 2270 per share. The share price settled at Rs 1858 on 21 October 2024. In this way, investors can expect a great return of 20 percent in the next year from the current price.
2. INDIAN HOTELS
Companies like IHCL (Indian Hotels Company Limited) own a wide variety of hotel brands, ranging from luxury (Taj) to budget (Ginger), so they can appeal to different types of guests. In addition to owning all of their hotels, many are managed or leased. This means they can grow quickly without spending too much money. Regarding how they make money, they earn revenue from room bookings, food and beverages, and management fees from the hotels they don’t own but operate. Their focus is on special guests, where they prioritize customer service and run loyalty programs to keep guests coming back. Additionally, many hotels focus on being sustainable and giving back to the community, which helps them stand out. This model helps Indian hotels to stay competitive and grow in the hospitality sector.
In 5 Best Stocks for Diwali 2024, we are talking about Indian Hotels. Indian Hotels stock has performed strongly in the recent past. Talking about the last 1-year return, IHCL stock has increased by 70.8%. Looking at the last 3-year return, the stock has increased by 242.6%, which is much better than the Nifty 100 return of 43.7%. In five years, it has increased by about 370.3%, which is very good. Big brokerage firms like Sharekhan have recommended a BUY on Indian Hotels. The target price is given at Rs 774 per share. Mistakes and Explanations: 1. **Sentence Structure**: “In Best Stocks for Diwali 2024, we are talking about Indian Hotels, Indian Hotels stock has performed strongly.
3. NESTLE INDIA
In 5 best stocks for diwali 2024; next company is Nestlé India, Nestlé India’s business model focuses on providing a wide range of food and beverage products tailored to local preferences. For example, Nestlé offers a range of products including Maggi noodles, Nescafé coffee, and KitKat chocolate, which cater to different tastes and needs. The company divides India into 15 consumer groups to better understand regional preferences, which helps it customize marketing and product offerings. The company also focuses on affordable pricing, as Nestlé uses multiple pricing strategies to appeal to different income groups, ensuring that its products are accessible to a wide audience. Additionally, the company focuses on a strong distribution network; Nestlé has a robust distribution system that ensures its products are available in urban and rural areas. This model helps Nestlé maintain its leadership in the competitive Indian FMCG market, and the company has shown strong stock performance in recent years. For instance, in the last year, the stock has grown by 9.11%, in the last three years it has grown almost the same, i.e., 31.49%, and in the last five years, the stock has grown by 80.15%. As a result, many big brokerage firms have advised buying it, with a target of Rs 2681 per share, and it is likely to provide great returns of up to 14 percent. Diwali stocks pics.
4. ISGEC HEAVY
Now let’s talk about the fourth company in the 5 Best Stocks for Diwali, which is a large company in India that focuses on providing comprehensive engineered solutions across various sectors. Isagec manufactures a wide range of products, including industrial boilers, process equipment, hydraulic presses, and sugar plants. The company engages in engineering, procurement, and construction (EPC) projects, providing complete solutions from design to execution. Isagec exports its products to more than 91 countries, leveraging international partnerships and joint ventures to enhance capabilities. The company constantly invests in technology and R&D to improve product quality and efficiency, ensuring that it meets global standards. It has a strong workforce, with a team of more than 900 engineers, and Isagec emphasizes skilled human capital to promote innovation and operational excellence.
And now, if we talk about its performance, the company has had very good performance. In the last year, the stock has given a return of 25%, and in the last three years, 85%. If we talk about the last five years, the company has given a return of about 150%, which is very good. Due to this, big brokerage firms have advised buying it and have given a target of Rs 1,700. Experts believe that the stock can provide a return of up to 18 percent in one year.
5. AXIS BANK
Now coming to the last company in this article of the 5 Best Stocks for Diwali, which is Axis Bank. Axis Bank focuses on providing a wide range of financial services to various customer segments. Axis Bank offers retail banking (savings accounts, loans, credit cards) and corporate banking (working capital financing, trade services) to cater to individuals and businesses. The bank invests heavily in technology, providing digital banking solutions like mobile apps and online services for convenience and efficiency. Its revenue streams come from interest on loans, fees for services (like credit card transactions), and treasury operations, ensuring a balanced revenue model. Axis Bank focuses on personalized service and building strong relationships with customers to enhance satisfaction. With thousands of branches and ATMs across India, Axis Bank ensures accessibility for its customers. Let’s talk about its performance: Axis Bank has shown strong past performance over the years. In the 1-year return, the stock price has decreased by 1.23% recently, with a current price of around ₹1,175.75. In terms of 3-year growth, Axis Bank’s revenue has grown at a CAGR of 19.29%, with a significant increase in total income to ₹131,810.59 crore in FY 2024. Profit After Tax (PAT): The PAT for FY 2024 was ₹26,386.20 crore, reflecting a growth of 143.48% compared to previous years. Loan Book Growth: Advances increased by 15.08% year-on-year, surpassing the 5-year CAGR of 11.38%. After looking at this article about the company, the brokerage firm has advised buying it for the next year, with a target given as ₹1,400 per share; the company can give a great return of up to 17 percent.
Disclaimer; The information provided in this note is for general educational purposes only and should not be considered as a recommendation to buy or sell any stocks. Investors should conduct their own research and consult with financial advisors before making any investment decisions.
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