Stocks to buy this Diwali: Angel One, Tips Music & Fino Payments Bank for Samvat 2081

As we welcome Samvat 2081 this Diwali, Indians worship their wealth and express gratitude for all that they have been blessed with on the auspicious occasion of Laxmi Pujan. Many make significant investments on this blessed day, or rather, muhurat. To facilitate this, the Indian stock market holds a special trading session in the evening. This year, Muhurat Trading will be held on November 1, 2024, from 6:15 pm to 7:15 pm.

If you are also looking to buy the best stocks for Muhurat Trading this Diwali, this article will give you five stocks handpicked by our team of research specialists. We will tell you why we think the stocks have potential, what the target and upside potential are, and of course, the holding period. Let’s get to it.

Samvat 2081: Diwali stocks for Muhurat Trading 2024

1. Angel One

The largest publicly listed broking firm, Angel One is a leading technology-driven financial services company with over 22.2 million clients. Beyond broking, Angel One has diversified into third-party product distribution, including mutual funds, IPOs, insurance, and bonds. 

Over FY24-27, we project Angel One's revenue to grow at a CAGR of 23.9%, reaching INR 6,342.9 cr. EBITDA and net earnings are forecasted to grow at CAGRs of 24.5% and 24.1%, respectively, reaching INR 3,021.0 cr and INR 2,150.3 cr. During this period, EBITDA and net margins are expected to improve by 72 bps to 47.6% and 13 bps to 33.9%. However, we anticipate a decline in Return on Equity to 26.6%. 

Angel One financials (in Cr)

Angel One Stock Analysis

2. Tejas Networks

Tejas Networks Limited (TNL) is a leading player in the telecommunications equipment space with a strong presence in both domestic and international markets. The company specialises in providing optical networking equipment, wireless products, and other broadband access solutions. The upcoming 5G network upgrades provide a lucrative opportunity for future orders. Its GPON and WDM products are gaining traction, and its U.S. network modernisation order offers a strategic entry into large global markets.

Tejas Networks posted its highest-ever quarterly revenue in Q2 FY25 at INR 2811 cr(INR 4,374 cr for H2FY25), with a robust order book of INR 4845 crore. Tejas has been pivotal in the rollout of 4G/5G infrastructure in India, specifically through its involvement in BSNL’s 4G/5G RAN deployments.

Tejas Networks financials (in Cr)

Tejas Networks Stock Analysis

3. Hindustan Zinc 

Hindustan Zinc Limited (HZL), India’s largest and only integrated producer of zinc, lead, and silver, continues to showcase strong operational and financial performance. As the world’s second-largest integrated zinc producer with the lowest cost structure, HZL holds over 75% market share in India’s primary zinc market. The company is also the third-largest global silver producer and remains a sustainability leader in the mining sector, ranking 1st in the Metals and Mining sector. Its diversification into silver and lead production, as well as investments in green energy projects, are expected to bolster revenue streams and mitigate commodity price fluctuations. 

Over FY23-27E, Hindustan Zinc Limited’s revenue is expected to grow from INR 34,098 crore to INR 39,818.8 crore, while EBITDA is projected to rise to INR 23,086.9 crore, with margins improving significantly to 58%. PAT is forecasted to reach INR 13,976.4 crore, achieving a PAT margin of 35.1%. Adjusted EPS is expected to increase to INR 33.1, with the Book Value Per Share (BVPS) growing to INR 51.7. Return ratios like RoE and RoCE are anticipated to remain strong at 52.3% and 52.4%, respectively, by FY27E.

Hindustan Zinc financials (in Cr)

Hindustan Zinc Stock Analysis

4. Tips Music Ltd.

(TIL) stands out as a strategic player with a comprehensive approach to content creation, leveraging a library of 31,000 songs and a substantial subscriber base of 69.6 million v/s Saregama with 1,60,000+ songs but only a subscriber base of 47.9 million. TIL's commitment to innovation is highlighted by allocating 30% of revenue to new content investments. Notably, Tips Films plans to release 10-12 movies annually, featuring songs for sale to TIL. This integrated approach maximises monetisation opportunities and emphasises TIL's dedication to content-driven revenue streams. In 2022, the Indian music industry experienced a noteworthy 19% growth, reaching a valuation of INR 22 bn. The music streaming sector amassed an audience of approximately 208 mn, with paid subscribers constituting a modest 2.4%, numbering around 4-5 mn. 

We expect revenues to grow at a CAGR of 26.8% INR 493 cr, EBITDA is expected to grow at CAGR 31.1% to INR 357 cr with 72.5% margins (+690bps) by FY27, while net earnings are expected to grow from INR 127 cr in FY24 to INR 287 cr (CAGR of 31.2%) with 58.2% margins (+559 bps).

Tips Music financials (in Cr)

Tips Music Stock Analysis

5. Fino Payments Bank 

Fino Payments Bank (Fino), with its unique distribution network of almost 1.8 million merchants covering ~97% pin-codes across India, along with its digital interface provides a unique exposure to bring the vast underbanked population into the formal economy. Already it has amassed ~11 million accounts which are expected to grow to 25 million (32% CAGR growth) by FY27E. While opening these accounts, Fino charges an upfront fee to customers that provides steady annuity revenues over the long term. We expect revenues from these streams to grow at a CAGR of 33% to INR 726 crore in the forecast period.

Leveraging this network, Finohas innovated B2B revenue streams like:

• CMS - CAGR growth of 32% to INR 329 cr

• Digital Payments - CAGR growth of 102% to INR 763 cr

• BC Banking - CAGR growth of 4% to INR 143 cr

This is over and above its initial retail offerings of MATM & AePS (CAGR growth of 4% to INR 217 cr) and Remittances (CAGR growth of 7% to INR 564 cr).

Fino Payments Bank financials

Fino Payments Bank Stock Analysis

Conclusion

Remember, investing in the stock market brings in inevitable risk. While these stocks are researched well by our experts, the market can be unpredictable. Invest in these stocks according to your risk appetite. Make sure you diversify your portfolio and make smart investments.