Muhurat Trading 2023: Date, Time & Significance.

Diwali, the festival of lights, is a time when every corner of India comes alive with celebrations, from the glow of diyas to the joy of sharing sweets and gifts with loved ones. 

But it’s not just about festivities; it’s also a moment when Indian investors get a unique opportunity to embark on a financial journey like no other – the sacred tradition of Muhurat Trading.

What is Muhurat Trading?

Muhurat Trading is more than just trading stocks; it’s an age-old practice that resonates with millions of Indian investors. One-hour time on the day of Diwali which is considered an auspicious time to invest in shares. 

The word “Muhurat” is steeped in significance, representing an auspicious time or moment believed to bring blessings and prosperity.

According to the Hindu belief, a Muhurat is a specific time frame when the stars and planets are aligned in an astrologically positive way, wherein conducting the desired business is believed to deliver favourable results and success.

Every year, the stock exchange specifies the time of Muhurat trading, and this year, the date and time of Muhurat trading are 12th November 2023 from 06:00 PM – 07:00 PM.

Also Read: How To Start Investing? A Beginner’s Guide

Why is Muhurat Trading so special? 

·        Auspicious Beginnings:

Believed that when you trade during this hallowed hour, you’re setting the stage for a year filled with financial success. This is the time to invite positive vibes and fortify your financial future.

·        Tradition and Culture:

Beyond the numbers, Muhurat Trading is a connection to our cultural roots and ancestral traditions. A heartwarming nod to the customs that have been passed down through generations.

·        Positive Sentiments:

Muhurat Trading isn’t just a personal endeavour; it’s a collective experience that can set the tone for the entire stock market. The positivity and enthusiasm during this session can lay the foundation for a prosperous year ahead.

Now, you might be wondering which stocks are the stars of Diwali 2023. While we can’t predict the future, we can certainly point you in the right direction.

Also Read: Best Financial Gifts For Diwali

Which Are The Best Stocks For Muhurat Trading 2023?

1. Navin Fluorine International – Recommended Price: Rs. 3538 | Target Price: Rs. 4452

• About: Navin Fluorine International Limited is one of the largest and most respected Indian manufacturers of speciality fluorochemicals.

The company is a trusted partner for global downstream users. The company is also a fluorochemical solutions provider for various downstream sectors.

• Investment Rationale: The group intends to increase capacity utilisation in the new plants commissioned during the year under review. 

The Group is the first commercial-scale HFO manufacturer in India. In FY 2023-24, this capability will be further leveraged to garner revenue and margin.

Navin Fluorine expects its refrigerants business to sustain growth, diversifying its presence across geographies while maximising its cash flows.

The PLI schemes are expected to boost the demand for chemicals and petrochemicals in India, as these sectors are major consumers of these products

• Valuation: Navin Fluorine has a significant expansion runway thanks to its strong capex and rich fluorination capabilities.

With the increased usage of fluorine in the Pharma and Agro area, battery chemicals, and performance materials, the HPP and Specialty Chemicals industries are likely to deliver substantial growth.

At the CMP of Rs. 3538, the stock quotes at a PE of 46x its FY24E earnings of Rs.76

Amount (Cr)	FY21	FY22	FY23	FY24E
Sales	1179	1453	2077	2429
EBITDA	309	356	550	614
PAT	258	263	375	382
EPS	51.60	52.60	75.00	76.33
PE (X)	68.57	67.26	47.17	46.35

2. Britannia Industries Limited – Recommended Price: Rs 4548 | Target Price: Rs 5340

• About: Britannia Industries, with a 100-year history, is one of India’s biggest food companies.

Britannia is one of the most trusted food companies in India, producing well-known products such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold.

Britannia’s product line consists of Biscuits, Bread, Cakes, Rusk, and Dairy items such as Cheese, Beverages, Milk, and Yoghurt.

• Investment Rationale: Britannia is a market leader in the Indian biscuit sector, accounting for more than a third of the value market. Over the 5 years ending March 2023, sales increased at a CAGR of 10%.

In the medium term, the company’s distribution expansion is aimed at fostering consumption-led growth in highly penetrated sectors.

The company steeped up the cost reduction in FY24, with 7x savings in H1FY24 against 5x in FY21.

Recently, the company introduced numerous new items, including Milk Bikis Classic in Tamil Nadu and an orange-flavoured croissant. Britannia intends to expand this brand by introducing more healthier products.

• Valuation: Britannia will preserve its established market position in the biscuit business, supported by strong brands and a broad distribution network.

Despite the hefty dividend payout, the company is likely to maintain excellent operating profitability and a strong financial risk profile.

At the CMP of Rs. 4548, the stock quotes at PE of 49x its FY24E earnings of Rs.92

3. Bharat Dynamics Limited (BDL) – Recommended Price: Rs 1038 | Target Price: Rs 1249

• About: Bharat Dynamics Limited is a public sector undertaking under the Ministry of Defence, Government of India engaged in the business of manufacturing base for guided missile systems and allied equipment for the Indian Armed Forces.

• Investment Rationale: BDL has evolved into one of the world’s few industries with cutting-edge facilities for the development and supply of Guided Missiles, Underwater Weapons, Airborne Products, and associated defence equipment for the Indian Armed Forces.

Its revenue objective for FY24 is Rs 32 bn. In fact, for the next 3 years, its Rs 200 bn order backlog ensures revenue growth visibility.

To boost its topline, BDL plans to use its knowledge to create weapons including drone-delivered bombs, heavyweight torpedoes, Air to Air Missile Systems, next-generation SAMs, and ATGMs.

BDL has achieved indigenization levels of 80–90% in many products through indigenization activities.

• Valuation: BDL has a robust order pipeline worth Rs 300 bn or more that will be finalized over the next 3-5 years. and its strong order backlog execution assisted BDL in achieving a good position among competitors.

At the CMP of Rs. 1038, the stock quotes at a PE of 35x its FY24E earnings of Rs.29.

Amount (Cr)	FY21	FY22	FY23	FY24E
Sales	1914	2817	2489	3193
EBITDA	346	727	409	603
PAT	258	500	352	540
EPS	14.10	27.32	19.23	29.51
PE (X)	73.63	37.99	53.96	35.18

4. United Spirits Limited (USL) – Recommended Price: Rs 1071 | Target Price: Rs 1200

• About: USL is the largest Indian spirits company that manufactures, sells and distributes beverage alcohol, producing and selling around 80 mn cases of Scotch whisky, IMFL whisky, brandy, rum, vodka, gin and wine.

• Investment Rationale: The macroeconomic climate was turbulent, but United Spirits’ performance held steady.

Because of its excellent brand identity, extensive product variety spanning multiple product categories, affordability, and nationwide presence, USL has around a 25 pct market share in the Indian spirits business.

According to Crisil Ratings, United Spirits’ revenue growth is expected to remain robust at over 9 pct driven by a higher focus on Premiumization.

In 1QFY24, USL eliminated all its accrued losses, and it is expected to develop a dividend distribution strategy shortly.

• Valuation: USL will continue to benefit from its market position and good operating efficiencies, as well as continuous parent support.

At the CMP of Rs. 1071, the stock quotes at a PE of 56x its FY24E earnings of Rs.18

5. Kirloskar Brothers Limited (KBL) – Recommended Price: Rs 917 | Target Price: Rs 1100

• About: The KBL group, which includes KEPL, is India’s largest pump manufacturer and exporter. It serves the industries of oil and gas, defence and maritime, water resource management, irrigation, power distribution, and construction.

• Investment Rationale: Because of its low-margin yield and large working capital requirements, KBL has intentionally reduced its exposure to the EPC business and focuses on high-margin business.

The KBL group has an established market position in the pumps business and has consistently transitioned its business towards product categories away from the projects’ business. As of Q1FY24 company has an order book of Rs. 34,710 mn.

The company expects increasing profitability by way of a better business mix, stable commodity prices, calibrated pricing increases, cost-cutting efforts, a higher proportion of high-margin and dependable service businesses, and an improvement in the global supply chain.

KBL is well-poised to leverage future opportunities and capitalise on its inherent strengths.

• Valuation: KBL will continue to benefit from the group’s established market position in the pump business, as well as improved operating profitability.

With thoughtful capital spending, the corporation is also projected to maintain its healthy financial risk profile.

At the CMP of Rs. 917, the stock quotes at a PE of 23x its FY24E earnings of Rs.39

Amount (Cr)	FY21	FY22	FY23	FY24E
Sales	2717	3058	3730	4364
EBITDA	241	206	400	546
PAT	161	94	236	312
EPS	20.13	11.75	29.50	39.00
PE (X)	45.57	78.04	31.08	23.51

Why Should You Choose Fintoo’s Top Picks?

Wondering about the dependability of these recommendations? Don’t worry! As we said, we are no astrologers to predict the future, but by combining our experience and expertise, we can surely try to identify the upcoming trends on the basis of logic and probability. This is also what we did last year and here are it results:

Fintoo’s 2022 Diwali Portfolio has outperformed the Nifty 50 by 35.6 % and the Nifty 500 by 32.2%

STOCKS	RECOMMENDED PRICE	TARGET PRICE	52 WEEK HIGH	Price as on 3/11/2023
Axis Bank	830	970	1047	989
Tata Motors	399	520	677	646
Va Tech Wabag	269	420	545	501
APL Apollo	1116	1360	1806	1544
Sona BLW	486	640	626	548

Also Read: Muhurat Trading: Best Stocks To Buy This Diwali

Remember, these are just starting points, and the market is known for its twists and turns. Before making any investment, it’s vital to do your research, consult experts, and align your investment choices with your unique financial goals and risk tolerance.

As Diwali approaches, let’s embrace the spirit of Muhurat Trading 2023 with hope and enthusiasm. May your investments shine as brightly as the Diwali lights, and may the upcoming year be filled with financial abundance and success.