Share Bazaar MONEY MAKING TIP! Want to become rich this Diwali? Check these top gainer stocks

The Indian markets have witnessed high volatility since last Diwali due to the combination of both global as well as domestic factors and gained around 7% so far. On the global front, the rising concerns over the global economic slowdown, geopolitical tensions, and the trade war between US-China has spooked investor sentiments which led to risk aversion. On the other hand, the Indian markets rejoiced the thumping mandate by the NDA in the general elections.'

Religare Broking told Zee Business Online that going forward, various government measures, a sharp recovery in monsoon (10% above normal), and lower interest rates augur well for the revival of consumption story in India. Therefore, the domestic consumption-driven stocks are likely to outperform and here are the stocks like Havells, M&M, Marico, Maruti Suzuki And Voltas in our Diwali picks for 2019.

 1. Havells: Target price is Rs 795.

Havells is amongst the top 3 players across all its business segments. In medium circuit breakers (MCB) - switchgear Havells commands highest market share of 26%. This enables the company to position its product at a premium as compared to others.

''We expect its performance to improve (vs Q1FY20) in the next few quarters led by festive demand. Moreover, Havells has strong balance sheet (low debt, low working capital), robust return ratios and healthy cash flows. We recommend a Buy with a target price of Rs 795,'' Religare Broking said.

2. Mahindra and Mahindra: Target price is Rs 695.

''M&M’s automotive segment is likely to witness challenges due to increase in competitive intensity and BS-VI implementation. Recently announced JV (not priced in our estimates) with Ford India would help M&M in strengthening its product portfolio, improve operational efficiencies, and increase exports from India. Therefore, we recommend a Buy on the stock, valuing the core business at 12x and arrive at a SOTP based target price of Rs. 695.''

3. Marico: Target price is Rs 451

Religare Broking further added,''We expect the sector to revive going forward and grow steadily led by increasing demand from both rural and urban areas, changing consumer preference and emerging e-commerce space. With positive sector outlook, management remains confident on growing its revenue by ~13-15% YoY and volumes by ~8-10% YoY. In addition, declining copra prices would help in providing cushions to margins. Hence, we recommend a Buy on the stock with a target price of Rs 451.''

4. Maruti Suzuki: Target price is Rs 7,936

''On the operational front, we expect margins to remain subdued in FY20E due to negative operating leverage but expect healthy
recovery in FY21E. Factoring in a dismal show H1FY20 and a modest recovery in H2FY20, we estimate MSIL’s Revenue/EBITDA/PAT to grow at 4.9%/2.7%/8.5% over FY19-22E. We recommend a Buy on the stock with a target price of Rs. 7,936,'' Religare Broking mentioned.

5. Voltas: Target price is Rs 780

Religare Broking said, ''Despite intense competition, Voltas is well poised to sustain its leadership position in room ACs. Further, sales and profit growth in EMPS is expected to be healthy given better quality order book and efficient execution particularly on the domestic front. We recommend a Buy on the stock with a target price of Rs 780.''

Note: Zee Business brings to you an exclusive line up of programming for Diwali 2019 with experts, insights & sharp acumen under Zee Business Damdar Diwali show. A Diwali treat for you! Starting soon from October 14 only on Zee Business.in.