With Diwali, the festival of lights, just around the corner, the Indian stock market is gearing up for a festive season. As the nation celebrates this auspicious occasion, many investors are looking to capitalise on the positive sentiment and make profitable investments. India is demonstrating remarkable growth and resilience, with the economy expected to expand by 7.2% in FY25. This positions India as the fastest-growing major economy in the world. Over the past year, the benchmark Nifty 50 index has increased by over 25%.
In this article, we’ll explore the top Shagun Ke Shares for Diwali 2024 as per Angel One Limited research, helping you make informed investment choices during this festive season.
Here are some of the Diwali stocks in 2024 as per Angel One Limited research:
Vesuvius India Ltd specialises in the manufacturing and trading of refractory goods and offers related services in domestic and international markets.
In Q1 FY25, the company reported a 14.1% year-on-year increase in revenue to ₹462 crore and a 28.9% rise in net profit to ₹67 crore, driven by robust demand from the steelmaking and foundry sectors. As part of the Vesuvius Group, a global leader in metal flow engineering, Vesuvius India is poised for growth through capital expansion to enhance its top-line performance in upcoming quarters.
Nippon Life India Asset Management Ltd is a leading asset management company that manages mutual funds, ETFs, and alternative investment funds.
In Q1 FY25, the company’s revenue surged by 42.6% year-on-year to ₹505 crore, with net profit rising by 40.6% to ₹332 crore, primarily due to strong market gains. With a focus on expanding its presence in B-30 cities, the company anticipates continued growth fueled by low mutual fund penetration in India.
NCC Ltd stands as one of India’s largest construction firms, involved in civil construction across various sectors, including transportation, water, and power.
In Q1 FY25, NCC recorded a 26.2% year-on-year revenue increase to ₹5,528 crore, and net profit rose by 21.2% to ₹223 crore, supported by a robust order book and superior execution. As a well-established player in the sector, NCC is positioned to benefit from the government’s infrastructure development initiatives.
Jyothy Labs Ltd, a prominent name in the FMCG sector, offers a diverse range of products in fabric care, dishwashing, and personal care.
In Q1 FY25, the company achieved a revenue increase of 7.9% year-on-year to ₹742 crore and a net profit growth of 6.2% to ₹102 crore. The shift toward urban living is expanding the market for branded products, prompting Jyothy Labs to enhance its distribution network and product portfolio for sustained revenue growth.
Dixon Technologies (India) Ltd operates in the Electronic Manufacturing Services (EMS) space, focusing on consumer electronics and home appliances.
The company experienced a remarkable revenue growth of 101.1% year-on-year to ₹6,580 crore in Q1 FY25, with net profit jumping 108.9% to ₹140 crore. The increasing demand for electronic products, driven by a tech-savvy population, positions Dixon for continued growth as it expands its manufacturing capabilities.
Mahanagar Gas Ltd is engaged in city gas distribution, supplying natural gas primarily in Mumbai and its surrounding areas.
In Q1 FY25, MGL reported a modest revenue increase of 3.4% to ₹1,590 crore, although net profit fell 22.5% to ₹285 crore due to rising input costs. Despite this, the company is well-positioned to meet the growing demand for CNG, bolstered by government investments in the natural gas sector.
Praj Industries Ltd is a leading biotechnology and engineering firm providing sustainable solutions in bioenergy and wastewater treatment. In Q1 FY25, the company’s revenue fell by 5.1% year-on-year to ₹699 crore, but net profit increased by 42.3% to ₹84 crore, attributed to a favourable product mix. The government’s push for bio-energy is expected to further support revenue and margins as the company secures new contracts.
eClerx Services Ltd operates as a key player in the knowledge process outsourcing (KPO) sector, offering business process management and analytics services.
In Q1 FY25, the company saw revenue growth of 14.2% year-on-year to ₹782 crore, with a net profit increase of 4.6% to ₹112 crore. eClerx benefits from strong demand in financial markets and is focusing on analytics and automation to enhance its revenue mix.
Colgate-Palmolive (India) Ltd, a leader in oral care products, recorded a revenue increase of 13.1% year-on-year to ₹1,497 crore in Q1 FY25, alongside a net profit rise of 32.8% to ₹364 crore, driven by strong sales in the toothpaste segment. With a diversified product portfolio and strong branding, the company is positioned to capitalise on increasing consumer awareness and spending in the oral care market.
Cummins India Ltd specialises in manufacturing diesel and natural gas engines.
In Q1 FY25, the company reported a 4.4% year-on-year revenue increase to ₹2,316 crore and a net profit rise of 30.7% to ₹463 crore, driven by cost rationalisation and a favourable product mix. As a leading engine manufacturer, Cummins is poised for growth, benefiting from the demand for alternative fuels and increased infrastructure spending.
After 2 years of persistently high inflation, global economies are now experiencing a steady moderation in inflation rates. Aggressive monetary tightening measures and a significant drop in energy prices have driven this easing. In response to the cooling inflation and a more stable job market, the US Federal Reserve has initiated its monetary easing cycle, announcing a 50 basis point rate cut in September 2024. For India, this trend can enhance its competitive edge in exports and positively influence profit margins for domestic companies, setting the stage for sustained economic growth.
India is well-positioned to navigate the global economic uncertainty, thanks to easing inflationary pressures and strong domestic demand. The Reserve Bank of India (RBI) has shifted its stance from ‘withdrawal of accommodation’ to ‘neutral,’ signalling potential rate cuts in the near future, following the US Fed’s actions. India’s economic fundamentals remain robust, with a manageable Current Account Deficit (CAD) of 1.1% of GDP and sufficient foreign exchange reserves of $705 billion. This resilience not only attracts foreign investment but also boosts investor sentiment.
In FY25 (up to September), DII flows reached ₹2.32 lakh crore, surpassing the total flows of FY24. This surge is supported by increasing incomes across all levels, leading to robust domestic buying. Systematic Investment Plans (SIPs) have grown at a Compound Annual Growth Rate (CAGR) of 23.4% over the last 5 years. Direct retail participation has also been instrumental in reducing the Indian market’s reliance on Foreign Institutional Investors (FIIs). This domestic support contributes to the overall health of the economy.
In the Union Budget for 2024-25, the government increased capital expenditure by 17%, raising it from ₹9.5 lakh crore in FY24 to ₹11.1 lakh crore in FY25. These initiatives are expected to drive long-term growth and strengthen India’s position in the global economy.
India’s economy is well-positioned for sustained growth, driven by easing inflation, robust domestic demand, and significant capital expenditure. This Diwali 2024 stock, as per Angel One Limited research, could be bright for those seeking investment opportunities. As always, consulting with financial experts before making any investment decisions is crucial to ensure better returns.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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