What is your Day six stock pick for Navratri?
Today’s pick is a dark horse and maybe a lot of people have lost money in this stock, but I am sticking my neck out that we cannot have a two-and-a-half play on telecom that is Reliance and Bharti on one side and half of Idea. Idea has now stopped losing market share. It is going to gain as far as ARPUs go as rates rise plus there is a relook on their debt with AGR and other things being considered by the Supreme Court which sum of part means that you cannot have a Rs 55,000-crore market cap on the company which is the third largest in the country.
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I can bet that Idea can be a very good takeover target or there could be a strategic buyout. Idea is going to go to 22 to 25. So, take a small punt. I think Idea can be a very big wealth creator if my call is correct. So, 22 to 25 on Idea betting on a doubling in the next one year.
Day 5 Stock Pick for Navratri
My fifth pick is the biggest of them all. It has underperformed for some time, but it is the time to get into Reliance. Abu Dhabi Investment Authority (ADIA) has taken a 0.6% stake, valuing the company at close to Rs 10 lakh crores. The other businesses, that is Jio Retail, Jio telecom arm and the new energy business and other businesses, oil to chemical, cannot be below Rs 6 lakh crore. Fair value of Reliance is Rs 20-23 lakh crore. So buy Reliance with a one-year perspective at Rs 2750-2800, maybe more, at least that much is coming.
Navratri Pick for Day 4
The fourth pick is Paytm. One will have to ignore the highs and lows which it saw, Rs 2,150 may have been over premium and Rs 450 was a very big discount. At Rs 850- 900, it is very attractive. This stock can hit Rs 1,500 by next Diwali. It is a must have in the portfolio.
Navratri picks for Day 1-3
The first pick is Tata Steel. The geopolitical risk and the undoing of China is going to see some settling down. And that will mean commodities, particularly metals, are in a very strong shape. At Rs 120, it has a very good opportunity for risk reward and can be an outperformer.
The second pick is Hindalco. It is the lowest cost aluminium producer in Asia. Hindalco is a sum of parts, the best play on ferrous, non-ferrous and can see a target of Rs 700 by next Navratri.
The third Navratri pick is Devyani International. It is a perfect play on millennial spending and the type of food habits which have changed. I can look at this stock at Rs 350 in the next one year.
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