Muhurat Trading Stock Picks: After a lacklustre Samvat 2081, investors are looking ahead with renewed optimism as the new Samvat year approaches, which could mark a fresh chapter for the Indian stock markets.
Most analysts are optimistic about the upcoming Samvat year, as they believe that after a year of underperformance, conditions are ripe for a revival in sentiment and risk appetite. This rebound will likely coincide with the earnings revival, strong domestic flows and a possible turnaround in FPI sentiment.
Against this backdrop, Religare Broking has released a list of five stocks to buy which it believes can offer up to 27% returns to investors.
Muhurat Trading Stock Picks
Religare’s stock ideas for Diwali include companies from the cement, banking and oil and gas sectors, namely Reliance Industries, HDFC Life, Power Finance Corporation, Mahindra & Mahindra Financial Services and Nuvoco Vistas. These stocks can offer up to 27% upside as of yesterday’s (October 14) closing price.
Reliance Industries | Target Price | Upside: 16%
The outlook remains robust, driven by sustained momentum in the high-growth consumer businesses (Jio and Retail) and the impending monetisation of the New Energy giga complex, said the brokerage.
“We expect this to translate into a strong consolidated Revenue/EBITDA to grow at a CAGR of 10%/15.1% over FY25–27E, as resilient O2C cash flows continue to fund new growth engines. The current valuation does not fully capture the immense value-unlocking potential from the New Energy and consolidated Media businesses. We therefore maintain a BUY rating, as these catalysts are expected to drive a re-rating and support a target price of ₹1,600,” it added.
HDFC Life Insurance Company | Target Price: ₹870 | Upside: 17%
Religare said that HDFC Life’s consistent execution, strong brand franchise, and industry-leading profitability metrics justify its premium valuation.
The long-term outlook remains robust, driven by its strategic expansion into underpenetrated Tier 2/3 markets, a growing protection business, and a relentless focus on digital innovation, opined the brokerage. It expects an Embedded Value (EV) CAGR of over 17% through FY27, reflecting sustained value creation. While near-term margin pressures are largely priced in, the company’s resilient business model and clear growth drivers support continued upside. “We value the stock at 2.6x its FY27E EV, maintaining a positive outlook with a target price of ₹870,” said Religare.
Power Finance Corporation | Target Price: ₹502 | Upside: 26.6%
PFC’s outlook remains strong, driven by its strategic role in financing India’s energy transition and infrastructure growth, said Religare. It believes that PFC is set to capitalise on a healthy disbursement pipeline, stable profitability, and resilient asset quality, which are projected to deliver a PAT CAGR of 12.3% over FY25-27E.
“We value PFC on a standalone basis at 0.9x its FY27E Adjusted Book Value and add the value of its stake in REC (with a 30% holding company discount). This methodology supports continued upside, and we maintain a positive outlook with a target price of ₹502,” it added.
Mahindra & Mahindra Financial Services | Target Price: ₹327 | Upside: 14.3%
“The long-term outlook for MMFS is positive, supported by its deep rural presence, strong promoter backing, and a clear strategy for portfolio diversification. With steady AUM growth, improving cost efficiencies, and stable asset quality, the company is well-positioned for healthy earnings momentum,” Religare opined.
It maintained a positive outlook with a Buy rating and a target price of ₹327, valuing the company at 1.4x its FY27E adjusted book value.
Nuvoco Vistas Corporation | Target Price: ₹487 | Upside: 12.4%
Nuvoco Vistas’ outlook is positive, underpinned by strong industry tailwinds and projected demand growth in the cement sector, said the brokerage.
The company’s strong operational performance, coupled with the strategic expansion through the Vadraj acquisition, provides clear visibility for future earnings, it added.
“Management’s dual focus on deleveraging the core business while efficiently managing capex for growth inspires confidence. Therefore, we maintain a Buy rating with a target price of ₹478,” it opined.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
