While Diwali is widely celebrated across India, the festival is a markedly special occasion for the country’s stock traders and the investor community. For many of them, this is the beginning of a new calendar year. It will be the start of Samvat 2077 according to a Hindu calendar followed in some parts of the country, particularly in states like Gujarat.

Therefore, investors put a lot of emphasis on making changes to their portfolio on the ‘auspicious’ day of Diwali by betting on stocks that they hope will offer outsized returns. Brokerages make recommendations based on their analysis on what the ‘lucky’ bets could be.

Business Insider went through 10 such reports to cull out the common themes. Not surprisingly, the private banks, telecom, and technology services sector have been featured more often than others in these ‘Diwali picks’. The recent earnings performance have been factored in by those recommending the following stocks:

Here’s a quick look at the popular stocks in brokerage recommendation report for Samvat 2077:

ICICI Bank

Samvat 2077: Bharti Airtel, Infosys, ICICI Bank, SBI, Varun Beverages and Can Fin Homes stocks are among the top Diwali picks

More than 5 top brokerages have set a target price of over ₹500 for ICICI Bank. The JM Financials report highlighted that the strength of ICICI bank lies in its highly efficient large liability franchise, strong capital ratios and value upsides through its strong subsidiaries.

Brokerage Target Price
Motilal Oswal ₹525
Axis Securities ₹504
HDFC Securities ₹503
IIFL ₹530
JM Financials ₹550

Bharti Airtel

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Samvat 2077: Bharti Airtel, Infosys, ICICI Bank, SBI, Varun Beverages and Can Fin Homes stocks are among the top Diwali picks

Bharti Airtel was among one of the top choices by brokerages for Samvat 2077. According to HDFC Securities, Bharti Airtel has cash and equivalents of over ₹22,700 crore as on September 30. And, improving cash accrual could sufficiently cover maturing debt of ₹13,900 crore in FY21. “We expect capex to be moderate at ₹20,000-22,000 crore per fiscal over the medium term. Furthermore, relief towards payment timelines on AGR dues could help to maintain liquidity at current levels.” the report said.

Brokerage Target Price
Motilal Oswal ₹650
Kotak Securities ₹710
HDFC Securities ₹597
Axis Securities ₹676

Infosys

Samvat 2077: Bharti Airtel, Infosys, ICICI Bank, SBI, Varun Beverages and Can Fin Homes stocks are among the top Diwali picks

The IT major Infosys was another top choice among the brokerages. According to HDFC Securities, Infosys financial profile has been robust, led by a debt-free balance sheet and healthy cash-generating ability over the past. The company’s financial flexibility is strong, supported by robust liquidity in the form of cash and cash equivalent of ₹26,011 crore as on September 30.

Brokerage Target Price
HDFC Securities ₹ 1,205
IIFL ₹1,400
Motilal Oswal ₹1,355
Kotak Securities ₹1,400

Varun Beverages

Samvat 2077: Bharti Airtel, Infosys, ICICI Bank, SBI, Varun Beverages and Can Fin Homes stocks are among the top Diwali picks

Pepsi maker Varun Beverages is also expected to hit the target price of over ₹800.According to Axis Securities, Varun Beverages will grow at a steady rate driven by consolidation in newly acquired territories and distribution led market share gains.

Brokerage Target Price
Axis Securities ₹865
JM Financials ₹800


Can Fin Homes

Samvat 2077: Bharti Airtel, Infosys, ICICI Bank, SBI, Varun Beverages and Can Fin Homes stocks are among the top Diwali picks

Axis Securities and JM Financials recommended a target price of over ₹500 for the housing finance major Can Fin Homes.

“The resilience and strength of Can Fin Homes’ business model is best depicted by our ROE forecast of 17% for FY21E. Even a crisis such as COVID 19 has not been able to lower Can Fin Homes’ ROE below its cost of equity Minimal disruption to asset quality, negligible impact on long term ROEs and a swift bounce back in growth are key reasons to BUY Can Fin Homes,” said a JM Financial report.

Brokerage Target Price
Axis Securities ₹515
JM Financials ₹575

State Bank of India

Samvat 2077: Bharti Airtel, Infosys, ICICI Bank, SBI, Varun Beverages and Can Fin Homes stocks are among the top Diwali picks

While pecking a target price of ₹ 300, Motilal Oswal said, “We believe the earnings normalization cycle for SBI has begun and it remains the best play among the PSU banks, on gradual recovery in the Indian economy, with a healthy PCR of 71%, robust capitalization, a strong liability franchise, and improved core operating profitability.”

Brokerage Target Price
Motilal Oswal ₹300
Axis Securities ₹261


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