Muhurat Trading Stock Picks 2024

Typically, markets remain closed on Diwali, except for this one-hour trading session. During this time, investors and brokers make their first transaction of the year, symbolizing prosperity and growth. While the short session lasts for only an hour, it’s filled with sentiment-driven moves, often leading to increased volatility.

Coal India | SBI Securities sees over 20% upside potential in Coal India with a price target of ₹593, driven by the company’s ambitious production goals—aiming for 838 million tonnes in FY25 and a notable 1 billion tonnes in FY26, following record production and offtake of 773.6 million tonnes and 753.5 million tonnes in FY24. Coal India is advancing its infrastructure via 72 First Mile Connectivity projects to boost mechanized coal transport, supported by a capex of ₹24,750 crore. Additionally, it’s enhancing cost efficiency by phasing out unviable underground mines and diversifying into non-coal minerals like graphite, a critical resource for electric vehicles and energy storage. At its current valuation, the stock trades at FY25/FY26 EV/EBITDA multiples of 5.7x and 5.2x with a 5.2% dividend yield, providing some downside protection according to SBI Securities.(get your Insurance)

Nippon Life AMC | SBI Securities highlights Nippon Life AMC's robust growth in equity and ETF assets under management (AUM), which reached 49.8% and 26.8%, respectively, as of June 2024, along with a significant 64% increase in SIP AUM. The company anticipates double-digit AUM growth, with a projected CAGR of over 20% for FY24-26, supported by its strong retail presence and the relatively low penetration of mutual funds in India. Investments in expanding distribution networks, especially in smaller cities and rural areas, are expected to drive further growth. Additionally, the firm is focusing on launching new products and expanding internationally. At current valuations, SBI Securities views the stock as reasonably priced and forecasts it to reach ₹825 within the next 12 months.(mutual fund SIP)

Bharti Hexacom | SBI Securities emphasizes Bharti Hexacom's strong market presence in Rajasthan and North East telecom circles, where it served 28 million customers as of March 2024. The company benefits from a solid infrastructure, with 25,704 towers and 79,835 mobile broadband stations, and gains synergies from its relationship with Bharti Airtel, including access to digital infrastructure and management expertise. Bharti Hexacom's recent acquisition of a 15 MHz spectrum for ₹1,000 crore further enhances its long-term service offerings. With a 13.6% revenue growth in 1QFY25 and strong ARPU, the company is anticipated to see an 18.9% revenue CAGR through FY26, which could drive the stock to ₹1,747 within the next year. Key risks include high capex requirements and regulatory challenges.(invest in mutual funds)

Macrotech Developers | SBI Securities recognizes Lodha as a prominent real estate developer with a well-established brand and a track record of delivering over 95 million sq. ft. The company maintains a diverse portfolio across residential, commercial, and warehousing sectors and is working to build a substantial annuity income pool, targeting ₹500 crore by FY26. Lodha has significantly reduced its debt, cutting it from ₹23,363 crore in FY19 to ₹7,680 crore in FY24, supported by strong cash flows. With an ambitious pre-sales growth target of a 20% CAGR through FY26 and a solid launch pipeline, SBI values the stock at ₹1,398 but notes potential risks such as project delays and high debt levels.(open your demat account)

Granules India | Operating through three segments—Active Pharmaceutical Ingredients (API), Pharmaceutical Formulation Ingredients (PFI), and Finished Dosages (FD)—Granules India has a broad portfolio spanning multiple therapeutic areas. The company is poised for growth through its strategic focus on the FD segment, stabilizing Paracetamol API sales in Europe, and ongoing backward integration initiatives. Additionally, the recent operationalization of its new FD facility and upcoming product launches, especially in North America, are expected to support its expansion.(start your trading now)

HCL Technologies | The Services division achieved notable growth, with a 5.9% year-on-year increase in constant currency and a 7.8% rise in digital revenue, driven by demand in cloud transformation and cybersecurity, which now constitutes 38.5% of services revenue. Positioned to leverage the growth in Generative AI, HCL’s AI Force digital suite supports workflow optimization, operational flexibility, efficiency, and enhanced service quality for clients. Committed to sustainable and responsible growth, HCL also boasts a strong deal pipeline, focusing on Data & AI, Digital Engineering, SAP migration, and efficiency-enhancing programs.(start your investment)

Zomato | Zomato has steadily increased its market share over Swiggy, growing from 54% in FY22 to 58% by 1QFY25, thanks to strong execution. The company plans to open 2,000 stores by March 2026, with 113 stores already in operation, and aims to maintain high service quality to attract customers in new regions. Additionally, its subsidiary Blinkit has been expanding its SKU offerings, which has significantly contributed to Zomato’s overall growth.(Buy Zomato)

Tips for Muhurat Trading

1. Limit Emotional Decisions: While Muhurat trading carries a positive sentiment, it’s essential to stick to a well-thought-out plan.
2. Focus on Quality Stocks: Avoid speculative stocks and focus on those with strong fundamentals.
3. Manage Risk: Use appropriate stop-loss levels to manage volatility, especially in a short session.

Happy Diwali, and may this Muhurat bring prosperity and good fortune to all our readers!