Picks for Diwali 2024: KRN Heat Exchanger, Tejas Networks and IndiGo among Anand Rathi’s six stock ideas

Every year, brokers come out with their selected stock recommendations before Diwali. For 2024, Anand Rathi has shared six such ‘Buy’ ideas for investors, including shares of KRN Heat Exchanger and Refrigeration Ltd, Tejas Networks Ltd, Data Patterns (India) Ltd, Interglobe Aviation Ltd (IndiGo’s parent), Power Grid Corporation of India Ltd and Mahindra & Mahindra (M&M) Ltd.

The brokerage sees a 30 percent increase in the KRN Heat Exchanger. It expects a 12-month target price of Rs 550 on the counter, compared to current levels of Rs 423. “KRN, a manufacturer of fin and tube heat exchangers widely used in the growing HVAC&R industry, is expanding its capacity , which would generate greater growth in the sector.” revenues from both existing and new products such as rod and plate heat exchanger, oil cooling unit with fan and motor and roller evaporator with improved margins in the export markets. Looking at the company’s experienced legacy, along with its plan to expand internationally and the rising demand in the HVAC market and strong demand from emerging sectors such as data centers, which could boost KRN’s revenue and profit margin in the long run promote,” said Anand Rathi.

For Tejas Networks, it has indicated an increase of 28 percent over the current market price (CMP) of around Rs 1,292. Anand Rathi pegged the stock at a value of Rs 1,650. “Tejas has a total order book of Rs 4,845 crore, of which the order book from India stands at Rs 4,627 crore and outside India is Rs 218 crore. The company has ramped up its 4G/5G RAN shipments for BSNL’s network. In the second quarter By FY25, Tejas has achieved over 30,000 locations and a total of 58,000 locations on BSNL’s network – Kavach, Bharatnet for phase 3, BSNL’s 4G network expansion and 5G upgrades are some of the capabilities that will help the company help show strong sales growth in the future, said.

In the case of Data Patterns, Anand Rathi believes the fair value of the stock is Rs 2,850, up 26 percent from the CMP of Rs 2,264. “The company has 100 export orders and expects new radar orders from South Korea and Europe in the coming quarters. The company forecasts total order inflows of around Rs 1,000 crore for FY25. Going forward, the company expects sales growth of approximately 20-25 per year. cent in FY25 and is targeting a CAGR of over 25 percent in the next 2-3 years. Margins are expected to remain around 35 percent, with expected earnings growth of 25-30 percent,” the broker said.

Anand Rathi values ​​IndiGo shares at Rs 5,300, up 17 percent from Rs 4,528. “IndiGo, India’s largest airline, has a market share of 62 percent in FY24, with 18 percent of the market share in the international passenger segment. In the first quarter of FY25, IndiGo served 2.8 crore customers. Huge investments by the government in airport construction, UDAN program and increase in passenger numbers are some of the growth factors for the aviation industry in the future,” the report said.

Next on Anand Rathi’s festive buying list is Power Grid Corporation. It expects a 16 percent increase in share price from Rs 319 to Rs 370 in the next twelve months. “PowerGrid stands to benefit significantly from India’s target of expanding its renewable energy capacity to 500 GW by 2030. In the first quarter, they became L1 bidders for three ISTS TBCB projects worth Rs 4,172 crore, including Rajasthan RE Power projects in Jaisalmer and Barmer (Phase IV, Part B & D) and the Fatehpur-Badla HVDC project (Phase III, Part I). The company has revised its capex plan for FY24 to Rs 18,000 crore, up from Rs 15,000 crore. For FY25, Rs 5,000 crore will be allocated for RTM and Rs 13,000 crore for other projects,” the brokerage said.

Stocks Mahindra and Mahindra were also included in Anand Rathi’s top bets for this year’s festival of lights. It expects the stock to reach Rs 3,250 in the next twelve months, up 15 percent from CMP’s Rs 2,835. “M&M has been the dominant market leader in the domestic tractor market, with a market share of 42 percent in FY24. The aim is to launch new models for ICE and EV in the automotive division. Based on a strong order book for UVs, new launches in ICE and EVs and a leading position in tractors. We believe the company will leverage its operational performance and deliver strong volume growth in FY25 across both divisions,” the brokerage highlighted.

The stock exchanges will hold a Diwali Muhurat trading session on November 1, 2024 from 6:00 PM to 7:00 PM, marking the beginning of the Hindu calendar year of Samvat 2081. While regular trading will remain closed for Diwali, the special one-hour Muhurat trading session will take place in the are open in the evening. A pre-opening session is scheduled from 5:45 PM to 6:00 PM, just before the main trading window.

The Muhurat trading session is considered an auspicious time. This one-hour trading period has long symbolized a fresh start for businesses, as investors take on new financial commitments under the glow of the Diwali festivities.