Anil Singhvi Top Diwali 2022 Picks: Orient Papers, IRB Infra, AB Capital, Delta Corp – Know triggers, targets on long-term

Anil Singhvi Top Diwali 2022 Picks: Zee Business Managing Editor Anil Singhvi believes the second half of the financial year is likely to be challenging as geopolitical tensions may persist, with Xi Jinping continuing to be the Chinese president for a third term. 

The managing editor said, the next six months are a golden chance to enter the equity market considering the volatility may persist in the Indian indices.  

He also believes that Diwali 2023 will be more beautiful than Diwali 2022 and picks paper, textile, and liquor along with FMCG and manufacturing as favourite sectors. 

Below is the list of the top four stocks to invest in with a long-term aim: 

Orient Paper and Industries: BUY – Target: 55/65/75; Period: Long-Term 

According to Singhvi, the paper sector has been in focus mainly on the multiple triggers among them Orient Paper and Industries is the best bet. He added the tissue paper (paper towel) segment has been a major focus and demand lately. 

Orient Paper is a CK Birla Group company, and it has underperformed to the sector so far, Singhvi said. He added the change in management could be a turnaround in the performance of Orient Paper.  

The group is implementing the same strategy as they did for their cement and electric arms like Orient Electric and Orient Cement.  

Orient Paper is planning a huge capex, and an expansion of Rs 256 crore is likely, similarly, the company is also aiming to cut down the power cost and reduce the dependence on export of pulp. 

The company has a market capitalization of around Rs 800 crore. It has strong assets in the land bank of 850 acres, which is around Rs 1000-1500 crore valuations, the managing editor said. 

The stock may double on a long-term basis, Singhvi said. He sets a price target of Rs 55/65/75.  

IRB Infrastructure Developers: BUY – Target: 350/500; Period: Long-Term 

Infrastructure growth is likely to increase from here, Singhvi said, adding that the company is improving and making its balance sheet strong as the company lately has got two big investors – Cintra and the Government of Singapore. 

The company’s holding company net debt is zero. The company mainly has been transferring its assets in InvITs. Promoters hold a 34 per cent stake. 

Government’s initiatives and projects in the infra segment will grow like Gati Shakti initiatives, Singhvi said adding that the valuations are attractive, and the balance sheet is strong. Target of Rs 350/500 for two years.  

Aditya Birla Capital: BUY – Target: 140/155/180; Period: Long-Term 

Birla Group company Aditya Birla Capital is known into a business of non-banking finance, insurance, and mutual funds among other financial services. The company had good parentage; however, the stock has been underperformer so far mainly due to Idea liability. 

Vodafone Idea has been coming out with multiple ways to remove stress in the company. With this, the fear of Idea on other Birla group companies especially in AB Capital is reduced.  

AB Capital has strong valuations with a PE multiple of 14 and has a market capitalization of around Rs 28,000 crore. Singhvi suggested to have patience in this counter and recommended to Buy this stock for a target of Rs 140/155/180 on a long-term basis. 

Delta Corp: BUY – Target: 270/350; Period: Long-Term 

Reiterating A Buy on this gambling and gaming company – Delta Corp shares for the second time during Muhurat Trading on Monday, Singhvi said the company has a splendid growth outlook and it has reported the best quarter this year.  

The company is into new-generation and monopoly business, which is also a positive for the stock price, the managing editor said. He added, the only concern company is dealing with GST issue. 

The stock is trading at a PE multiple of 20-22, the managing editor said, giving two targets 270/350 per share levels.  

JM Financials’ Ashu Madan said Delta Corp is a beautiful pick and believes the GST decision should be in the company’s favour. The company has been subdued mainly due to covid-led restrictions for the last two years.