Muhurat Trading Stock Picks: Top Brokerage Recommendations for Indian Investors

Muhurat Trading, a significant event in the Indian stock market, is just around the corner. As investors gear up for the special trading session, top brokerages have released their recommendations for the best stocks to buy. In this article, we will delve into the top picks from leading brokerages, including Laurus Labs, Can Fin Homes, and Bank of India.

Laurus Labs: A Top Pick in the Pharma Sector

Laurus Labs has emerged as a top pick in the pharma sector, with B&K initiating coverage with a Buy rating and a target price of Rs 1,030. The brokerage firm expects the company’s CDMO business to emerge as the main earnings driver ahead, with the ARV disruption largely behind and steady growth expected in the future. Additionally, other APIs are expected to complement the company’s growth, while generic formulation capacity expansion will drive growth.

Can Fin Homes: A Surprise Package in Q2

Can Fin Homes surprised positively in Q2, with Net Interest Margin (NIM) and asset quality exceeding expectations. Despite loan growth pressures driving down valuations, the company’s Return on Equity (RoE) is expected to be 15% in the financial year 2028, which is still attractive relative to many mid- and small-sized NBFCs for a secured business. Valuation is also attractive in this context, with Morgan Stanley maintaining an Underweight rating and hiking the target price to Rs 120 from Rs 110.

Bank of India: A Promising Pick in the Banking Sector

Bank of India has also been recommended by top brokerages, with Morgan Stanley maintaining an Overweight rating and hiking the target price to Rs 1,000 from Rs 970. The brokerage firm expects the bank’s Net Interest Margin (NIM) to decline, but strong asset quality and a robust return on assets (RoA) will drive growth. However, the bank’s RoA is expected to be pressured once credit costs normalize.

Pharma Stocks: A Sector to Watch

Pharma stocks have been in focus in recent times, with Piramal Pharma and Blue Jet being top picks in the sector. New molecules are expected to spice up the hypercholesterolemia space, with Obicetrapib being a key driver of growth. However, Blue Jet‘s loss is Piramal Pharma‘s gain, as the former’s target price has been cut to Rs 825 from Rs 900.

Real Estate Sector: A Mixed Bag

The real estate sector has been a mixed bag, with Sunteck being a top pick in the sector. The company’s pre-sales jumped 34% in the September quarter, taking 1H pre-sales up 32% YoY. Management highlighted its super-luxury push on the call, with a large Rs 20,000 crore pipeline. Business development has remained steady, with Rs 2,300 crore worth of projects signed YTD and a few major additions expected later in the year. However, the stock is trading at a 36% discount to NAV.

Conclusion

In conclusion, the Muhurat Trading session is expected to be a significant event in the Indian stock market, with top brokerages recommending a range of stocks across various sectors. Laurus Labs, Can Fin Homes, and Bank of India are top picks in their respective sectors, while pharma stocks and real estate sector are also expected to be in focus. As an investor, it’s essential to do your research and stay up-to-date with the latest market trends and brokerage recommendations to make informed investment decisions.