Diwali Stock Picks: Here're 10 Stocks Recommended By ACMIIL

As the Indian equity market reached new heights in Samvat 2080, SEBI registered Stock Broker Asit C. Mehta Investment Intermediates Limited gave a list of ten stocks as Diwali picks for the upcoming Samvat 2081.  Samvat-2081, a new year for the stock trading community, is set to start from November 1, 2024, with Muhurat trading scheduled between 6 pm to 7 pm on the day.

Samvat 2080 & Way Forward

During Samvat-2080, the Sensex began at 65,259 and the Nifty at 19,525, with BSE's market cap rising from Rs 322.48 lakh crore to Rs 458.15 lakh crore. Both indices hit record highs, with the Sensex reaching 85,978.25 and the Nifty at 26,250 on September 27.

The BSE Sensex surged by 25.1 per cent, and the NSE Nifty50 grew 27.9 per cent this year. However gold (39.7 per cent) and silver (44.3 per cent) outperformed equities. US benchmark indices S&P 500 and NASDAQ gave 34 per cent and 35 per cent respectively during this period. Looking ahead, key growth drivers include Corporate earnings growth momentum, capex cycle revival, strong GST collections and domestic demand, but rising crude oil prices and global economic concerns pose risks. Investors are urged to conduct thorough research before investing and not blindly pick-up the recommendations

ACMIIL Stock Picks

Out of the ten stocks, six were recommended primarily due to their fundamental strength, while four after technical indicators were examined.  The six fundamentally sound stocks are Ador Welding Limited Capital Goods, CIE Automotive India Limited, Alicon Castalloy Limited, Astral Limited Plastic Products, ITD Cementation India Limited Infrastructure and J.Kumar Infraprojects Limited Infrastructure.

Varun Beverages, Data Patterns India Limited, Vedanta and ITC are stocks recommended based on technical analysis.

All stocks gave minimum returns of 16 per cent last year as per the release and it went as much as 39 per cent and 46 per cent return in one year for Caplin Point Laboratories Ltd and Timken India Limited respectively. Here we mention five stocks recommended by ACMIIL with the highest upside potential.

1. Ador Welding Limited

(Current Market Price: Rs 1,353.15, Target Price: Rs 1806)

Ador Welding is the second largest player in the Domestic Welding Industry, holding approximately 15 per cent market share in consumables and 8-9 per cent in equipment. Upcoming growth will be supported by government infrastructure investments and a revival in private capex. The company's strategy focuses on capital expenditure, benefiting from higher allocations for ports, roads, and the PLI scheme, which will boost demand for welding consumables. Its strong distributor network and diverse customer base position it well for future growth, according to AMCIIL.

2. Alicon Castalloy Limited (ALICON)

(Current Market Price: Rs 1,302, Target Price: Rs 1765)

Alicon Castalloy Limited (ALICON) manufacturer and supplier of high-quality aluminium castings has the strength of strategic locations that enable shorter time-to-market and enhanced cost optimization. Their focus on innovation enables them to provide value-added products, including BS-VI-compliant components and lightweight solutions. The share of international business is set to improve further, AMCIIL says.

3. CIE Automotive India Ltd.

(Current Market Price: Rs 528, Target Price: Rs 698)

It is a global supplier of automotive components and sub-assemblies. It has a strong order book of Rs 1,000 Cr in India, with Rs 300 Cr in the EV segment

distributed across various sectors, including shafts in forgings, aluminium components, and significant orders in the composite sector for three-wheeler EVs. Revenue is expected to grow at a CAGR of 6.2 per cent for CY23-CY26E, the stockbroker said.

4. Astral Ltd.

(Current Market Price: Rs 1,862 Target Price: Rs 2,627)

Astral Ltd. (ASTRAL), a manufacturer of plumbing and drainage systems is now foraying into paints, faucets & sanitary ware and valves and Infrastructure. Demand from building materials like pipe, paint, sanitary ware, faucets, ceramic, and plywood are linked to various sectors like construction, real estate, infrastructure, etc., which is expected to grow forward, AMCIIL says

5.Vedanta Limited

(Current Market Price: Rs 500, Target Price: Rs 630-800)

Vedanta Limited was among the technical stock picks as it exhibited a rounding bottom pattern on the weekly scale, indicating a potential move towards 600-640 levels. Support at the 50-WEMA is around 386, and staying above this level suggests bullish momentum. AMCIIL recommends buying on dips around Rs 470-475, with a stop loss at 385, targeting Rs 630-800 per scrip.