Anticipating the festive season of Diwali, brokerage firm StoxBox has unveiled their top five stock picks that offer investors the potential for lucrative returns of up to 22%. These recommended stocks span across various sectors such as telecom, real estate, and personal care, providing ample diversification options. Let’s take a closer look at these enticing investment opportunities.
StoxBox has expressed a bullish sentiment towards Ashoka Buildcon, with a buy call and a target price of Rs 163, offering a potential upside of 22% from the current market price. The company’s order book, as of September 30, 2023, stood at an impressive Rs 17,566 crore, indicating a significant growth trajectory. Furthermore, divestments in various projects would unlock substantial capital, thereby reducing the consolidated project debt.
Bharti Airtel has caught the attention of StoxBox, receiving a buy rating with a target price of Rs 1,106, reflecting a potential upside of 19%. With its industry-leading average revenue per user (ARPU), a solid subscriber base, and a favourable pricing environment, Bharti Airtel is positioned for future growth. The company is expected to benefit from tariff hikes, migrations from 2G to 4G, and the monetization of data.
StoxBox recommends buying stocks of Coal India, with a target price of Rs 370, offering an upside potential of 19%. Driven by the demand projections outlined in the “Vision 2024” plan, Coal India envisions producing 1 billion tonnes of coal by FY25-26 to meet the country’s needs. With significant projects in place, the company is fully equipped to achieve this ambitious target.
Colgate-Palmolive (India) has emerged as an attractive investment option, receiving a buy rating from StoxBox with a target price of Rs 2,500, suggesting a potential upside of 19%. Despite considerable market penetration, there is still significant room for growth in the oral care business, particularly in rural areas. The company’s recent recovery in volumes and its exploration of opportunities from its global portfolio further contribute to its promising outlook.
Puravankara, a prominent player in the real estate sector, has garnered a buy call from StoxBox, with a target price of Rs 176, indicating a potential upside of 21%. As the real estate sector in India is expected to expand significantly in the coming years, Puravankara stands to benefit from this growth. With a robust sales book and collections, the company is actively pursuing new acquisitions and entering new markets to drive future expansion.
These five stock recommendations from StoxBox offer investors exciting opportunities to capitalize on the festive season and potentially generate substantial returns. However, it’s essential to conduct thorough research and consult with financial experts before making any investment decisions.
1. What sectors do the recommended stocks belong to?
The recommended stocks span across sectors such as telecom, real estate, and personal care.
2. What is the potential upside of these recommended stocks?
The recommended stocks offer potential returns of up to 22%.
3. How does divestment impact Ashoka Buildcon’s consolidated project debt?
Divestments in Ashoka Buildcon’s CGD business and road project SPVs would release locked-in capital and reduce consolidated project debt by over Rs 5,616 crore.
4. What factors contribute to the growth prospects of Bharti Airtel?
Bharti Airtel benefits from industry-leading ARPU, a growing subscriber base, and an improved pricing environment with expectations of regular tariff hikes.
5. What is driving Coal India’s ambitious production target?
Coal India aims to produce 1 billion tonnes of coal by FY25-26 to meet the increasing coal demand in India, as projected in the “Vision 2024” plan.
6. What growth opportunities does Colgate-Palmolive (India) have?
Colgate-Palmolive (India) has room for growth in the oral care business, particularly in untapped rural markets. The company has also seen positive recovery in volumes and explores opportunities from its global portfolio.
7. Why is Puravankara positioned favorably in the real estate sector?
Puravankara benefits from a healthy sales book and collections in an expanding real estate market. The company is actively seeking new acquisitions and venturing into new markets for future growth.