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Muhurat trading: 12 Diwali stocks recommended by HDFC Securities

SUMMARY

HDFC Securities said changing policies and slowing economic activities hit stock markets this year. The report further said that it's not just business models, processes and strategies that are undergoing disruptive change. “The rules of doing business and behaviour are changing in India. GST is driving up formalization. The use of cash in retail trade is falling. Household savings are getting more financialised (into mutual funds, insurance, and direct equity) as the lure of real estate and gold falls." Therefore, the brokerage gave simple advice saying, "Choose managerial excellence over connections in powerful places; to choose integrity over compromise; customer franchise over cyclical price rise; free cash flows and responsible financial structures over reckless leverage." The brokerage has recommended twelve stocks to buy during this Diwali. Stock exchanges will hold Muhurat trading this year on Sunday, October 27, between 6:16 PM to 7.15 PM.

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By Mousumi Paul  Oct 21, 2019 11:48:36 AM IST (Published)

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Affle (India) Ltd is a global technology company that uses its consumer intelligence platform to deliver targeted mobile advertising. Its consumer platform (97 percent of revenues) is used by online & app companies for mobile advertising and mobile monetization. The Rs.459 cr IPO of Affle came in July 2019 at Rs.745.

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Amber Enterprise India is a component manufacturer for many prominent air conditioner brands in India with over three decades of experience. It has a dominant presence in Room Air Conditioners (RAC) and its component markets with 15 manufacturing facilities across India focusing on different product segments.

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Apollo Hospital Enterprise Ltd (AHEL) is Asia’s one of the leading integrated healthcare service providers. As of March 31, 2019, AHEL has 70 hospitals, with total capacity of 10,167 beds. Of these, 44 hospitals are owned including subsidiaries, JVs and associates with 8,683 beds along with 5 hospitals where 934 beds are managed.

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Bajaj Auto is the second-largest motorcycle manufacturer in India and the fourth-largest three-wheeler and two-wheeler manufacturer in the world. It has a domestic motorcycle market share of ~19 percent. The company is the largest 3W company in India with a commanding market share of ~61 percent.

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BEML is Asia’s second-largest manufacturer of earthmoving equipment and it controls more than 60 percent of India’s market in that sector. BEML operates under three major business verticals - viz. Mining & Construction (earthmoving, dump trucks, dozers, and excavators), Rail & Metro (RM) and Defence (Tatra trucks and ARVs) segments.

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Deepak Nitrite Limited (DNL) enjoys a leading market position in basic chemicals, fine & specialty chemicals and performance products in the domestic as well as global markets. DNL’s manufacturing facilities are located at Nandesari and Dahej in Gujarat, Taloja, and Roha in Maharashtra, as well as in Hyderabad.

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Fairchem Speciality Ltd. (FSL - formerly known as Adi Finechem Ltd.) is a specialty oleochemical manufacturing company. Fractions of natural oils and fats such as soybean, sunflower, and cottonseed are the source of the company’s fine chemical products. FSL manufactures more than 65 products and possesses manufacturing capacity of 45,000 MTPA of Adi and 22,000 MTPA of Privi located in Western India.

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Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a premier shipbuilding company in India under the administrative control of the Ministry of Defence, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. GRSE is the first shipyard in the country to export warships and deliver 100 warships to the Indian Navy and Indian Coast Guard.

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Muthoot Finance Ltd (MFL) is India’s largest, niche gold finance company with an AUM of ~Rs 358 billion in Jun-2019. Headquartered in Kochi (Kerala), the company majority is owned by the Muthoot family (73.5 percent stake as of Jun-2019). It currently has 4,502 branches and presence across 29 states/union territory in the country. However, its footprint is concentrated mostly in the South with ~60 percent branches.

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SBI Life is the second-largest private sector life insurance company in the country and has a 6.2 percent market share in the whole insurance industry. It has a diversified product mix across individual and group insurance products along with a multichannel distribution network comprising of bank assurance, individual agents, insurance brokers, direct sales, etc.

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Sudarshan Chemicals is the 4th largest pigment manufacturer globally and the largest in India which is now aspiring to become the 3rd largest in the next 5 years.

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India is the second-largest cement market in the world. With 21 percent market share in India, UltraTech Cement is the largest manufacturer of grey cement, Ready Mix Concrete (RMC) and white cement in India.

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