Diwali bonanza! Top 10 stock picks by experts for new Samvat : ICICI and Edel in ET

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Sahil Kapoor, Chief Market Strategist, Edelweiss Financial Services, has recommended five stocks for investors to look at this Diwali.

ICICI Bank: Its subsidiaries have near market leadership in their respective segments (mortgages, auto loans, commercial vehicle loans, life insurance, general insurance and asset management) and international and corporate lending can be the new growth drivers as the environment improves.

L&T: The company has dominant presence across verticals, which exposes L&T to pick up orders in roads, power, commercial & residential real estate, railway, water sectors. Strong OB and domestic execution pickup will drive earnings for the company going forward

Repco Home Finance: The company has built a lucrative model entailing superior NIMs (4 per cent plus) as it caters to the under-served high-yielding market. The company's deep understanding of cash flows in self-employed segments gives an edge in credit appraisal

Solar Industries: The Indian explosive market is the eighth largest in the world and Solar Industries (SOIL) is the market leader in the domestic industrial explosives segment with a 30 per cent market share.

SRF: SRF is the leader and specialist in fluorine chemistry. Entry barriers and high domain sophistication is likely to sustain business growth in the Specialty chemicals segment. 

Here are the top five stocks ICICI Securities recommends for new Samvat

ITC: The brokerage firm estimates revenue and net profit to grow at a CAGR of 8.8 per cent and 6.6% in FY15 and FY 17E, respectively. The brokerage has maintained a positive stance on ITC as it believes the company's focus on the growing FMCG business would be a catalyst to topline growth in the long run. Simultaneously, a structural decline in commodity prices has increasedvisibility of earnings growth in this segment.

Bajaj Finance: ICICI Securities believes that Bajaj Finance's (BFL) niche positioning in consumer durables financing coupled with the diversified nature of its book helps de-risk the portfolio. BFL's premium valuations are expected to sustain on better earnings visibility (PAT CAGR estimated at 29 per cent to Rs 1,502 crore over FY15-17E).

Blue Dart Express: BlueDart continues to be a market leader in the air express market with a 52 per cent market share. However, it has a 15 per cent market share in ground express. Positive development around aviation sector in terms of rationalized ATF and operational levers on the back of route optimization would continue to favour the EBITDA growth, on the back of which we continue to remain positive.

Kajaria Ceramics: Kajaria Ceramics is the largest manufacturer of ceramic, vitrified tiles in India. Being the market leader, it has significantly increased its capacity from 30.6 msm in FY11 to 59.1 msm in FY15. ICICI Securities remains positive on Kajaria given the sturdy growth in the industry, favourable structural shift, its better margin and return ratio profile coupled with a strong balance sheet.

It expects topline and bottomline to grow at a CAGR of 18.9 per cent and 27.8 per cent, respectively, during FY15-17E. It has a buy recommendation on the stock.

Syngene International: SIL is the contract research organisation (CRO) arm of Biocon. SIL caters to outsourced research requirements of global pharmaceutical, biotechnology, agrochemical, consumer health, animal health, cosmetic and nutrition companies on a fee-based contractual arrangement. "Syngene is a play on increasing global outsourcing trend by large pharmaceutical and biopharma players. The company plans to foray into manufacturing to cash on its expertise in researchservices. "We believe in the company's growth prospects and thus have a positive view," said the brokerage firm.