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Muhurat trading 2024: 5 stock picks you can consider this time

Muhurat trading 2024: 5 stock picks you can consider this time
The one-hour muhurat trading session, which marks Diwali 2024 and the onset of Hindu Samvat 2081 on both NSE and BSE, is set to commence at 6 pm today and will conclude at 7 pm.

Generally, investors and traders make symbolic stock buys during this hour-long session, since it is believed that purchases made during this time herald wealth and prosperity for one’s investments for the year to come.

If you are looking for stock recommendations to add to your portfolio, here are a few value picks by SAMCO and Kotak Securities you can consider:

HDFC Bank Ltd
Holding period: 1 year
Last Traded Price: Rs 1,734.30

Per the firm, “The bank has maintained a robust 10-year profit CAGR of 21.74%, operating with a NIM (net interest margin) of 3.5% and a low net NPA (non-performing assets) of 0.3%. Advances and deposits have shown steady growth. Currently, the stock trades below its 10-year average price-to-book value and at a price-to-earnings ratio of 19, offering a favorable risk-reward profile with a substantial downside buffer”.

Vindhya Telelinks Ltd
Holding Period: 1 year
Last Traded Price: Rs 1,992.55

SAMCO notes that this key cable manufacturing, which is a joint venture between Universal Cables Limited and Madhya Pradesh State Industrial Development Corporation, has shown robust growth over the last 5 years, nearly doubling revenues with a 14.3% CAGR. The company holds significant investments in Birla Cable Ltd, Birla Corporation Ltd, and Universal Cable Ltd, totaling Rs 3,618 crore—surpassing its market capitalization of Rs 2,545 crore. This solid investment base underscores Vindhya Telelinks’ strong fundamentals and financial potential.

Ramco Industries Ltd
Holding Period: 1 year
Last Traded Price: Rs 244.89

SAMCO observes that over the past decade, sales grew at a 7% CAGR, while the share price rose at a 14% CAGR. Known for its financial stability, Ramco Industries boasts a low debt-equity ratio of 0.07 and has consistently paid dividends since FY17, currently yielding 0.31%. The stock’s attractive price-to-book multiple of 0.5 offers a solid margin of safety, highlighting its investment appeal.

Gravita India
Holding Period: 12 months
Last Traded Price: Rs 2,119

Kotak explains that Gravita India is the market leader in India’s emerging recycling industry with a focus on lead recycling. GRAV is increasing its recycling capacity by a massive 72% to 500 ktpa by FY27E.

“We expect the company’s earnings per share to grow by 31.8% in FY25E & 31.6% in FY26E. We also expect an upside of 15% or more on this stock over the next 12 months”, adds Kotak’s note.

S H Kelkar and Company (SHKL)
Holding Period: 12 months
Last Traded Price: Rs 289.90

The company is a flavors & fragrances (F&F) supplier and has started to make inroads into the global market. SHK is well-placed to drive double-digit revenue growth. The company is a small but emerging contender in the vast F&F market, with potential for margin expansion—higher-margin geographies & operating leverage—allowing for over 15% return upside in the next 12 months.

Kotak Securities further notes that FY25 will likely see more broad-based growth across sectors. However, the OMCs (oil marketing companies) may likely drag down overall profits. Most sectors and stocks are quite overvalued, with the degree of overvaluation ranging from:

(1) low for most large-cap consumers, IT services and pharmaceuticals
(2) medium in the investment space
(3) high in the case of several low-quality companies.

"As the broader market valuations are rich, opportunities arising from market correction can be used to add quality stocks (with attractive valuations) from a long-term investment perspective", explains the research firm's note.

SAMCO further advises adding a little glitter to your portfolio using GoldBees and SilverBees ETFs since there
are recessionary fears in the US and geopolitical tensions across the world. Even central bankers like RBI have
been adding gold to their vaults like never before. At present, markets are looking to secure their return on capital rather than seeking a return on capital.

"Thus all of these make a strong case to add gold and silver to the portfolio. They will give stability to your portfolio this Samvat," adds SAMCO's note.

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