• By Elite Wealth
  • / October 15, 2022
  • / Events

Diwali Samvat 2079 Recommendations

Company Sector CMP/Accumulate (Rs.) Target (Rs.) Upside (%) Time Horizon
Berger Paints Paints 615 740 20 12 months
HDFC Bank Bank 1400 1650 18 12 months
Maruti Suzuki Automobile 8200 – 8400 9800 17 12 months
Relaxo Footwear 975 1220 25 12 months
Reliance Industries Refineries 2400 3120 30 12 months
Siemens India Electrical Equipment 2740 3200 17 12 months
Sun Pharmaceuticals Pharmaceuticals 970 1200 24 12 months
Tata Chemicals Chemicals 1150 1380 20 12 months
Tata Power Power 215 280 30 12 months
Ultratech Cement Cements 6185 7425 20 12 months

Diwali Samvat 2078 Performance

Company Recommended Price Target Status High + Dividend High Date Gains from High*
Bharti Airtel 691 950 Position Closed 819.75 04-Oct-22 19%
Larsen & Toubro 1790 2130 Target Almost Hit 2100.55 18-Jan-22 17%
ONGC 161 210 Target Almost Hit 205.45 08-Mar-22 28%
State Bank of India 513 650 Position Closed 585.60 15-Sep-22 14%
Cipla 906 1160 Target Almost Hit 1155.40 06-Oct-22 28%
Sona BLW Precision 642 810 Target Achieved 841.44 14-Dec-21 31%
Tata Power 225 310 Target Almost Hit 299.80 07-Apr-22 33%
Axis Bank 831 1050 Position Closed 867.90 25-Oct-21 4%
Easy Trip Planners 475 580 Target Achieved 955 24-May-22 101%
ICICI Securities 752 918 Target Achieved 920.05 13-Oct-21 22%

*High + Dividend



Berger paints India Ltd.(CMP – Rs. 615 Target – Rs. 740)

Berger paints India Ltd. (BPIL) is the second largest paint manufacturer in India and one of the top five paint companies in Asia. It is headquartered at Kolkata, with 16 strategically located manufacturing units across India (including the subsidiaries), 2 in Nepal, 1 each in Poland and Russia and about 162 stock points. The company also has an international presence in 4 countries (Nepal, Bangladesh, Poland and Russia). It has countrywide large distribution network of 50,000+ dealers. BPIL is acclaimed as a game changer in the sector with a vibrant portfolio of paints and tailor-made customer services in every paint segment.

Key Highlights:

  • The revenue growth of the company is strong led by the improved demand in decorative and industrial paints. Company has maintained its market share over a longer period of time.

  • On a three-year basis, revenue grew at a CAGR of 17% led by volume CAGR of 14% during the same period.

  • The company has seen good growth both in terms of volume and value in terms of automotive sales. Demand for industrial paints is rising with revival of auto industry.

  • Increased focus on the `water proofing & building chemical’ category will continue to drive revenue growth for BPIL.


BPIL is a well-known brand in the decorative paints segment. The decorative and industrial business is looking good as the overall economy’s outlook is positive. The operating margins of the company is improving gradually and is at 15.3% in the Q1FY23. The TTM EPS of the company is at Rs. 9.7. Company is currently delivering the ROCE & ROE of 25.7% and 22.8% respectively. Hence, we recommend to buy the stock for the target price of Rs. 740 with the time horizon of 12 months.



HDFC Bank Ltd.(CMP – Rs.1400 Target – Rs.1650)

HDFC Bank Ltd. is one of India’s leading private banks with banking network of 6,378 branches and 18,620

ATM’s in 3,203 cities/towns. It offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments: Wholesale Banking Services, Retail Banking Services and Treasury. The services offered by the bank include Personal Accounts & Deposits, Loans, Cards, Forex, Investments & Insurance.

Key Highlights:

  • The bank has touched an incremental market share in Term Deposits (TDs) of 42% in FY18, 21.5% in FY20 and 26.1% in FY22. In Q1FY23 bank added Rs 600 billion in TDs and due to forthcoming merger, the focus is to garner more TDs.

  • The total deposits of the bank is continuously rising and is at 16.73 lakh crores while total advances is at whopping 14.8 lakh crores at the end of September 2022 quarter.

  • The Asset Quality of the company is best among its peers which highlights HDFCB’s strong underwriting capabilities. On the standalone basis NIM is at 4.1% while Gross NPA and Net NPA is at 1.23% and 0.33% at the end of September quarter.



HDFC Bank’s sound fundamentals, extensive distribution network, and agile operations enables it to be at the top among its peers. The financials of the bank are continuously increasing and the merger with HDFC Ltd. to further strengthen its leadership position. Its aggressive branch expansion plan will drive growth; management has maintained its guidance of adding 1000-2000 branches per annum. The Commercial and Rural Banking would be the key growth enabler given the vast untapped opportunity. On the performance front, HDFC bank shows EPS at TTM of Rs. 71.6 and at the current price of Rs. 1400 it is trading at 20x. We recommend to buy the stock for the target price of Rs. 1650 with the time horizon of 12 months.


Maruti- Suzuki-India-Ltd.-elite

Maruti Suzuki India Ltd. (Accumulate – Rs. 8200-8400 Target – Rs. 9800)

Maruti Suzuki India Ltd. (MSIL) is the leading car manufacturer of passenger vehicle segment in India and one of the largest automobile seller with 39.88% market share as of September 2022. The Company has two state-of-the-art manufacturing facilities, located in Gurugram and Manesar in Haryana, capable of producing 2.25 million units per annum.

Key Highlights:

  • MSIL has multiple SUVs in the launch pipeline over the next 18 months and its more active new product launch calendar should help it regain market share.

  • The company is on the track to launch its EV segment PVs by 2025 and would benefit from the pre-developed EV infrastructure.

  • The market share of non-SUV segment is 65%, but it does not have any car in the mid – SUV segment. The company is entering mid – SUV segment to lift market share and planning to increase its total market share to 50% from current 45%.


MSIL is India’s largest vehicle manufacturer and supplier with almost 41 years of experience. The chip shortage may ease in the coming months, allowing the company to clear its order book rapidly. The robust pending order-booking, easing of semiconductors supply constraints and planned new launches in Mid SUV segment to drive double digit volume growth. Benefit of price hikes, stabilizing of metals prices and operating leverage to result in sharp improvement in profitability. On performance front the company’s TTM EPS is Rs. 147. We recommend to accumulate the stock at Rs. 8200 to RS. 8400 for the target of Rs. 9800 for the time horizon of 12 months.

Relaxo-Footwears- Ltd-elite

Relaxo Footwears Ltd.CMP – Rs. 975 Target – Rs. 1220

Relaxo Footwears Ltd. (RFL) is a well-known brand in the mid-range footwear segment in India. It started off with manufacturing of Hawaii slippers and subsequently diversified into manufacturing casuals, joggers, school and leather shoes. The product range of the company includes Hawai, Canvas, Dip, Bahamas, Leatherite, Joggers and Flite.

Key Highlights:

  • The Rs. 960 billion Indian footwear market (FY20) is witnessing a unique transformation over the last few years. The consideration of PLI scheme of Rs.2600 crores for the footwear and leather sector will further boost the production and exports of the company.
  • The company has undertaken corrective pricing actions to help revive sales volumes and to make the brands competitive with unorganized player.
  • RFL has recently opened 50-100 stores which contains all the in-house brands of the company. Through this strategy, it will focus on improving the sales as well as profitability per store.




RFL is one of India’s most quality conscious and progressive footwear companies. A dominant player in the open footwear segment with wide distribution reach, competitive pricing, and strong brand recall, renders it an edge over the unorganized footwear market. The e-commerce channel is gaining momentum gradually and managements’ plans to grow the exports by 20-25% on the low base would contribute to the revenue growth. The TTM EPS of the company is at Rs. 9.7 at the end of Q1FY23. Hence, we recommend to buy the stock for the target price of Rs. 1220 with the time horizon of 12 months.

Reliance- Industries-Ltd.-ELITE

Reliance Industries Ltd.(CMP – Rs. 2400 Target – Rs. 3120 )

Reliance Industries Ltd. (RIL) is one of India’s biggest conglomerates with a presence in oil refining & marketing and petrochemicals, oil & gas exploration, retail, digital services and media, etc. making it a well diversified business entity. In the June quarter on a consolidated basis, O2C and oil & gas contributed 68% to revenue, while retail, and others contributed 24%, and 8%, respectively. At the EBITDA level, O2C and oil & gas contributed 56% while retail and others contributed 9.5% and 34.5%, respectively.

Key Highlights:

  • In the FY22 the high crude prices led to 56% YoY EBITDA growth in O2C business. The crude price improvement from $30/pbl to current $95/pbl, continues to drive strong growth momentum in FY23.

  • Revenue of the Retail segment grew 26% YoY in FY22 and the expansion plans through physical as well as digital platforms announced in the AGM will bring further long term growth.

  • Reliance Jio business has retained its market share and is at 36.23%. In the new energy business it recently acquired 100% stake in REC Solar, which specializes in solar panels.


RIL’s Retail, Telecom and New Energy can be the next growth engines over the next two-to-three years for the company. The rollout of 5G services by this Diwali will accelerate the ARPU for the Reliance Jio. The retail segment is strengthening; acquisition of several FMCG brands by the company will help to gain the market share. RIL has shown the EPS of Rs. 99.5 on TTM basis and is trading at the 24 times on the current price of 2370. Hence, we recommend to buy the stock for the target price of Rs. 3120 with the time horizon of 12 months.


Siemens-Ltd. -elite

Siemens Ltd. (CMP – Rs. 2740 Target Rs. 3200 )

Siemens Ltd. is a global powerhouse focusing on the areas of electrification, automation and digitalization. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of systems for power generation and transmission as well as medical diagnosis. In infrastructure and industry solutions the company plays a pioneering role.

Key Highlights:

  • The company reported revenue growth of 49.8% YoY, driven by strong growth across key segments such as Mobility (up 185.5% YoY), Energy (up 52.3% YoY), Smart Infra (up 38.1% YoY) and Digital Industries (up 45.7% YoY) in the Q1FY23.

  • It has strong capacity utilisation across industries and expects strong traction in roads, renewables, railways, process industries, etc.

  • Siemens is aiming to target the SME segment, which will allow it to scale up, adopt new designs & components and stay competitive.

  • Siemens has recently signed a MoU with NTPC to demonstrate the feasibility for hydrogen co-firing blended with natural gas in Siemens V94.2 gas turbines installed at NTPC Faridabad gas power plant. This plays a key role in reducing the CO2 emissions.


Electrification, automation and digitalization are the long-term growth fields of Siemens. The penetration of automation & digitisation products and services across segments will drive long term growth for the company. The order book of the company is at the all-time high level of close to Rs. 17,000 crores. Various PLI schemes announced for the industries in which company operates will also benefit the company in the longer horizon. Siemens is delivering the EPS of Rs. 34 at the TTM basis. We recommend to buy the stock for the target price of Rs. 3200 with the time horizon of 12 months.

Sun-Pharmaceut-cal- Industries-Ltd.-elite

Sun Pharmaceutical Industries Ltd.(CMP – Rs.970 Target – Rs. 1200)

Sun Pharmaceutical Industries Ltd. (SPIL) is the fourth largest specialty generic pharmaceutical company in the world. The company also makes active pharmaceutical ingredients. In branded markets, their products are prescribed in chronic therapy areas like cardiology, psychiatry, neurology, gastroenterology, diabetology and respiratory. It generates major revenue from India (33%) and US (30%).

Key Highlights:

  • The company had Wide basket of 604 ANDAs & 67 NDAs filed and 515 ANDAs & 54 NDAs approved across multiple therapies as of June 2022.

  • Specialty R&D expense of the company was 21% of total R&D spend in the June Quarter and is likely to inch up as clinical trials goes up.

  • The branded formulations business of SPIL now contributes more than 50% to revenue. The business is exhibiting strong growth because of growth in focus markets of US and India.

  • Higher contribution from specialty & strong domestic franchise is likely to change the product mix of the company.


The outlook remains positive on SPIL on the back of sustained scale-up in the specialty portfolio, robust franchise building in the branded generics portfolio, and healthy ANDA pipeline awaiting approval. Company ranks no. 1 in India with 8.5% market share in generic business as of June 2022. The specialty revenue growth has been impressive at an average of 30.0% YoY over the last four quarters. The company has another four new drug application molecules undergoing trials. The TTM EPS of Sun Pharma is Rs. 16; ROE and ROCE is 14.5% and 18% respectively. Hence, we recommend to buy the stock for the target price of Rs. 1200 with the time horizon of 12 months.

Tata -Chemicals-Ltd.-elite

Tata Chemicals Ltd. (CMP – Rs. 1150 Target – Rs. 1380)

Tata Chemicals Limited (TCL) is one of the oldest company of the Tata Group, they are the third largest soda Ash and sixth largest sodium bicarbonate producer in the world. The company has divested all its non-core business and are now scaling up the core basic and specialty chemicals business. The company operates in four divisions namely Nutritional Science, Energy Science, Agro Science and Material Science
Basic chemical forms 75% of overall revenue while the rest comes from specialty products.

Key Highlights:

  • Soda ash is a key raw material in the process of lithium – ion batteries and as the world is planning to shift from conventional vehicle to EV, demand for soda ash is going to gain pace.

  • Rallis, a subsidiary company of TCL continues to focus on launching products and reducing dependence on imported intermediates from China. The overall China+1 strategy is also boosting the sentiments.

  • Soda Ash price environment is likely to stay robust over the next 18-24 months and the demand-supply dynamics are forecasted to remain favourable until FY25-FY26.



TCL has been reporting solid performance consistently despite a challenging environment this adds on to the optimistic view about continued soda ash demand across geographies, which will boost the Revenue. The ongoing global soda ash shortage globally will further improve realisations through heightened pricing. The management expects the positive momentum to continue in the near to short term and aims to leverage digitalisation for further growth. TCL is trading at 19 times at the current price level of 1160; TTM EPS is at Rs. 61. We recommend to buy the stock for the target price of Rs. 1380 with the time horizon of 12 months.


Tata -Power-Company-Ltd.-ELITE

Tata Power Company Ltd.(CMP – Rs. 215 Target – Rs.280 )

Tata Power Compay Ltd. (TPCL) is primarily engaged in Power Generation, Transmission and Distribution of Electricity. Together with its subsidiaries & joint entities, it has a power generation capacity of 13,750 MW of which 36% comes from clean energy sources.  It also has product portfolio in next Generation Power Solutions including Solar Rooftop, EV Charging infrastructure, Home Automation and Microgrids.

Key Highlights:

  • The company reported strong start to FY2023 with 103% YoY growth in PAT at Rs. 795 crore, supported by higher integrated Coastal Gujarat Power Ltd. plus coal profit and strong growth in Renewable Energy business.

  • It has robust order book worth of Rs. 14,600 crores as on 30th June 2022.

  • TPCL with its subsidiaries, is a pioneer in the EV Charging space and owns an expansive network of over 600 public chargers in 120+ cities and it had recently signed a MoU with National Real Estate Development Council to install up to 5,000 EV charging points across Maharashtra.


Tata Power is expanding its business portfolio across renewables, transmission and distribution, as well as customer centric businesses of Solar Rooftops, Solar Pumps, and Micro grids, EV charging, Energy Services (ESCO), Home Automation and Floating Solar. The company’s focus to shift from a B2G to B2C model would drive robust earnings growth over the next 4-5 years. Higher imported coal prices to lead to improved profitability from the company’s Indonesian mines. The company’s renewables and distribution business makes it the best private player in the sector. Currently Tata Power is trading at the PE of 32x and BV of 3x at the current price of Rs. 215 on TTM basis. Hence, we recommend to buy the stock for the target price of Rs. 280 with the time horizon of 12 months.


UltraTech- Cement- Ltd.-elite

UltraTech Cement Ltd.(CMP – Rs.6185 Target – Rs.7425 )

UltraTech Cement Ltd. (UTCL) is the largest manufacturer of grey cement, ready-mix concrete (RMC) and white cement in India with a consolidated capacity of 119.95 Million Tonnes Per Annum (MTPA) of grey cement. It is the only company in the world to have a capacity of over 100 million tonnes in a single country, outside of China. The company has extensive distribution network with over 30,000+ Dealers, 64,000+ Retailers and 3,000+ stores across India.

Key Highlights:

  • The recently announced expansion plan of 22.6 million tonnes per annum and expected capacity of 153.85 mtpa by FY25 is robust.

  • The financials of the company remains strong; Q1FY23 revenue of the company increased by 28% YoY to Rs. 15,164 crores, with consolidated volume increasing by 22% YoY.

  • The EBITDA margin of the company is at 22% at the end of Q1FY23 which is the highest among its peers.

  • The company expected to benefit from declining pet coke and diesel prices, the impact of which would be visible in the coming results.




UTCL, the leading company in the cement industry offers strong growth momentum because of its capacity utilization and better cost management.  Company is structurally improving its cost structure by increasing its green power usage. The management of the company expects demand to grow at 8% CAGR in next 5 years and demand outlook stay positive on the back of increased government spending and positive outlook on real estate industry. On the performance front, the TTM EPS of the stock is at Rs. 250 and it trades at the PE of 24.7 at the current price level of Rs. 6200. Hence, we recommend to buy the stock for the target price of Rs. 7425 with the time horizon of 12 months.

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