The union budget for 2023-24 is expected to boost the stock market by curtailing the fiscal deficit. With the boost in the infrastructure market, power and EV infrastructure, the stock market will likely give good returns to Indian traders. Major FPIs may invest in India, therefore creating better opportunities.
By increasing the tax-free income range, the government has enabled citizens with more money in hand, enhancing the purchasing power and creating an investible surplus.
Investors will receive opportunities with the upsurge in consumable stocks during the festive seasons. Investing in a diversified portfolio is recommended in order to achieve the best returns. Based on this, listed below are some of the best stocks for Diwali.
Best Diwali stocks
Based on your investment preferences, glance at some of these top Diwali stocks.
Titan
Titan is the parent company of Tanishq, Zoya, Mia, and Caratlane. The company has several other products like premium fragrances, women's apparel, watches, and more. It also has an eyewear category, TitanEye+. It has a strong presence in the Indian market currently with approximately 2,300 stores and plans to open around 700 more stores, including an expansion in global markets. The company’s figures are mentioned below:
Growth in last 5 years: 19% CAGR
Profit Growth: 30% CAGR
ROE & ROC >20%
Market Capitalisation: Rs. 2.3 lakh crore
PE Ratio: 79
Polycab
Polycab - A leader in the cables and wire segment, the company offers fast-moving electrical gears like fans, switches, light gears, and more. Capitalising on technology, the company has launched IoT-enabled devices like smart fans, smart lights, smart water heaters and more. Venturing into a solar segment, it offers solar inverters, solar panels, solar DC wires, and more. With high growth in the infrastructure sector, the demand for cables and wires, is also on a surge.
Growth in last 5 years: 17.6% CAGR
Profit Growth: 33% CAGR
ROE & ROC: >20%
Market Capitalisation: Rs. 40,000 crore
PE Ratio: 36
Tata Power
Tata power is about conventional and neural energies and next-generation power solutions like solar rooftops, EV charging stations, and home automation, providing clean and sustainable energy. Established in 1911, it is among the leaders in integrated power generation. Partnering with HPCL, the company has helped in developing the highest number of EV charging stations nationwide.
Growth in last 5 years: 10.2% CAGR
Profit Growth: 16.7% CAGR
Market Capitalisation: Rs. 70,000 crore
PE Ratio - 32
ICICI Bank
ICICI Bank - As one of India's leading private banks, the bank is among the top mutual funds houses in India. Increased bank transactions making them profitable.
Growth in last 5 years: Loan book revenue has increased from Rs. 5.6 lakh crore in 2018 to Rs. 9.2 lakh crore in 2023
Profit Growth: Increased from Rs. 9,100 crore in 2018 to Rs. 29,318 crore in 2023
Market Capitalisation: Rs. 6.2 lakh crore
PE Ratio: 22
IDFC First Bank
IDFC First Bank - The bank received its private licence in the year 2015. To overcome bad debts from their parent company, the bank focuses on retail banking while reducing the exposure to corporate loans. While improving the asset quality substantially, the bank’s NPA value has decreased significantly.
Growth in last 3 years: 30% CAGR
Profit Growth: Rs. 1,238 crore in 2023
Market Capitalisation: Rs. 35,000 crore
PE Ratio: 28
Dixon Technology
Dixon Technology - With government initiatives like Atmanirbhar Bharat and Make in India, the scope for electronic components in mobile phones is reflecting an incremental graph for future growth. Established in 1993, the company manufactures various electronic components for brands like Samsung, Xiaomi, Havells, Phillips, Bajaj, Syska, and more. With a rising per capita income and higher disposable incomes, the consumable market is growing. Its exponential revenue jump indicates that its stock value may continue to grow.
Growth in last 3 years: 34.9% CAGR
Profit Growth: 33% CAGR
ROE & ROC > 20%
Market Capitalisation: Rs. 26,000 crore
PE Ratio: 112
Conclusion
The festive season is distant right now. However, investing now might make your festivities more joyous. However, the list of stocks mentioned are based on the changing market demands and prospective future growth for the companies. This list though, is not exhaustive but seems promising in a future context. While we have shared suggestions for the best stocks for Diwali, it is recommended that you do your own independent research and due diligence, before making an investment decision.
Disclaimer
The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.