Thu Oct 31 05:40:53 UTC 2024: ## JM Financial Predicts 10 Stocks to Boost Your Diwali

**New Delhi:** JM Financial has curated a list of 10 stocks that they believe could boost your Diwali this year. The list spans across diverse sectors, including Nifty 50 heavyweight Reliance Industries, PSU companies like PowerGrid and NALCO, and real estate player Macrotech.

**Reliance Industries:** Despite recent downtrends, JM Financial remains optimistic about the company, citing expected telecom tariff hikes, retail business recovery, and positive developments in the new energy segment. The brokerage expects strong revenue growth across segments and forecasts a 15% CAGR in net profit over FY24-27. They have assigned a ‘Buy’ rating with a target price of ₹3,500. However, potential risks include high debt due to continuous high capex, limited ARPU growth, and weak downstream margins.

**PowerGrid:** JM Financial believes PowerGrid is attractively valued with a ‘Buy’ rating and a target price of ₹383. The brokerage expects robust growth in transmission capex and an 18% return on equity (RoE) for the company during FY24-26. Key risks include lower-than-expected project capitalization and increased competition in tariff-based competitive bidding.

**Bajaj Finance:** The brokerage assigned a target price of ₹8,552 for Bajaj Finance, citing strong asset quality and attractive valuations. They see scope for re-rating given the potential for growth in return on equity and assets. Major risks include higher-than-expected slippage, credit costs, and limited AUM growth.

**ICICI Lombard:** While currently trading at a premium valuation, JM Financial expects the stock to continue its rally with a 17% growth and ROE. Despite a slowdown in growth, they advise investors to see any seasonal weakness as a buying opportunity, setting a target price of ₹2,450.

**JSPL:** JM Financial expects JSPL’s strategic expansion to increase crude steel capacity by 65% to 15.9 MT and improve product mix. They anticipate EBITDA reaching ₹15,000 per tonne by FY26, driven by margin expansion. The brokerage has assigned a target price of ₹1,500, highlighting JSPL’s strong balance sheet.

**NALCO:** The brokerage forecasts a threefold increase in NALCO’s EBITDA to ₹1,200 crore in the current quarter, driven by price increases, cost reduction, and the benefits of captive coal mining. They expect FY27 EBITDA of ₹6,000 crore and a net cash balance of ₹3,500 crore, resulting in a target price of ₹264.

**Gravita India:** JM Financial expects a 30% CAGR in net profit for Gravita, fueled by its domestic lead recycling space and capacity expansion plans. They anticipate an RoE of 32% and RoCE of 28% by FY27, raising the target price to ₹3,068.

**Macrotech Developers:** JM Financial expects strong cash flows for Macrotech, driven by healthy pre-sales growth in the last three years. They predict average cash flows of ₹7,000-8,000 crore over the next three years. The brokerage has assigned a target price of ₹1,480 per share.

**Olectra Greentech:** The brokerage believes Olectra Greentech has strong long-term potential and near-term volume growth, warranting a re-rating. They have set a target price of ₹2,200.

**Ashoka Buildcon:** JM Financial forecasts a 33% CAGR in net profit for Ashoka Buildcon over FY24-26 and a robust RoE of 10% in FY26. They have assigned a target price of ₹290 based on FY26 standalone earnings.

**Disclaimer:** This information is intended for general knowledge and does not constitute investment advice. Consult with a financial expert before making any investment decisions.

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