As a new year commences, fundamental shifts in equity markets are rare, yet investors often seize the moment to reassess their portfolios, identifying winning themes and shedding underperformers. Capex, PSUs, manufacturing, and consumption emerge as promising themes for 2024.
On the index front, Nifty’s most bullish projection for 2024 hovers around 25,000, while bears anticipate a potential downside of up to 25%.
The importance of strategic investing in the stock market to build wealth.
Strategic investing in the stock market is paramount for building sustainable wealth over the long term. Here is why:
- Capital Appreciation: Stock investments can increase in value over time, and choosing growth-oriented stocks can lead to wealth expansion through compound returns.
- Portfolio Diversification: Investing in a variety of sectors and asset classes spreads risk and can stabilize a portfolio against market shifts.
- Income Generation: Dividends from established companies offer a regular income stream, complementing investment gains for financial objectives like retirement.
- Long-Term Perspective: A long-term outlook, backed by in-depth research and analysis, helps investors pick companies with solid fundamentals for sustained growth.
- Adaptability and Risk Management: Investors should stay informed of market trends and adjust strategies to manage risks in a volatile stock market.
- Wealth Preservation and Growth: A methodical investment approach, realistic goals, and proper risk management contribute to a strong portfolio that promotes wealth preservation and growth.
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The potential for significant returns through well-researched the best stocks to invest in 2024 is substantial, driven by market recovery, technological innovation, emerging trends, opportunistic strategies, and global economic expansion. By conducting thorough research, maintaining a diversified portfolio, and staying informed about market developments, investors can position themselves to capture the upside potential of the market and achieve their financial objectives in the year ahead.
Here are the 10 best stocks to invest in 2024: Those must be in your portfolio:
Below are the stocks those are influenced by the Budget 2024. These stocks are intended for long-term investment purposes rather than short-term trading, with a minimum investment horizon of five years or more.
Budget Impact On Renewable Energy Stocks:
In the contemporary landscape of energy consumption, The allocation of resources, tax incentives, and policy directives embedded within the budgetary framework hold profound implications for investors, businesses, and the broader energy sector. The increase in Non-Fossil Fuel installed electricity capacity is at 43.9 percent. The Budget’s impact on renewable energy strategy for Amrit Kaal (1/5) includes
Commitment to sustainable development and meeting ‘Net Zero’ by 2070:
- Entails viability gap funding for wind energy.
- Establishment of coal gasification and liquefaction capacity.
- Phased mandatory blending of CNG, PNG, and compressed biogas.
- Financial assistance for the procurement of biomass aggregation machinery, and rooftop solarization efforts.
Moreover, the Budget aims to enable one crore households to receive up to 300 units of free electricity per month and promote the adoption of e-buses for public transport networks. It also aims to strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure. Furthermore, a new scheme of biomanufacturing and bio-foundry will be launched to promote environmentally friendly alternatives.
There are three stocks in this aspect, we consider:
- REC (Rural Electrification Corporation Limited): REC Ltd. is an Indian public sector that operates in the financing sector, providing loans and financial assistance for various rural electrification projects, including power generation, transmission, and distribution infrastructure.
- PFC (Power Finance Corporation Limited): PFC Ltd. is a leading Indian financial institution specializing in providing financial assistance and support to the power sector. It provides a range of financial products and services, including project financing, debt syndication, advisory services, and asset management, to power generation, transmission, and distribution companies.
- IREDA (Indian Renewable Energy Development Agency Limited): IREDA Ltd. is a specialized financial institution in India that provides financial assistance, including loans, project financing, and advisory services, to renewable energy projects such as solar, wind, biomass, and hydroelectric power across the country.
| Power Financing NBFCs | Share In Credit Towards Renewable Sector | |||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
IREDA | 31% | |||||||||||||||||||||||||||||||||||||||||||||||||
PFC | 32% | |||||||||||||||||||||||||||||||||||||||||||||||||
PFS | 1% | |||||||||||||||||||||||||||||||||||||||||||||||||
REC | 19% | |||||||||||||||||||||||||||||||||||||||||||||||||
TCCL | 7% | |||||||||||||||||||||||||||||||||||||||||||||||||
India Infradebt Ltd | 9% | |||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate | 99% | |||||||||||||||||||||||||||||||||||||||||||||||||
Here are the Peer Comparison of important data analysis of REC, PFC & IREDA Stocks:-
| Key Metrics | REC Ltd | PFC Ltd | IREDA |
|---|---|---|---|
Market Capital | ₹ 1,31,635 Cr. | ₹ 1,51,194 Cr. | ₹ 55,045 Cr. |
Stock (P/E) ratio | 10.0 | 8.42 | 63.7 |
Book Value | ₹ 247.95 | ₹ 282.70 | ₹ 21.53 |
Dividend Yield | 2.54 % | 2.35 % | 0.00 % |
ROCE | 9.14 % | 9.08 % | 8.17 % |
ROE | 20.11 % | 19.24 % | 15.4 % |
Face Value | ₹ 10.0 | ₹ 10.0 | ₹ 10.0 |
Industry P/E | 20.6 | 20.6 | 20.6 |
Debt To Equity Ratio | 6.74 | 8.73 | 8.01 |
Sales Growth | 16.0 % | 9.47 % | 21.8 % |
Sales Growth 3 Years | 9.66 % | 7.64 % | 13.7 % |
Profit Growth | 26.2 % | 26.9 % | 36.5 % |
EPS(TTM) | 49.87 | 54.38 | 1.29 |
EBIDT Last Year | ₹ 37,658 | ₹ 73,754 | ₹ 3,251 |
EVEBITDA | 12.6 | 11.4 | 28.2 |
Note: Shareholding pattern of REC ltd has 52.63 % of PFC holdings. Here, It is clear that PFC Ltd is the holding company of REC Ltd.
source: screener.in
Budget Impact On Hotels and Tourism Stocks:
The budget’s impact on hotels and tourism stocks is a subject of keen interest for investors, analysts, and industry stakeholders alike, as it reflects not only fiscal priorities but also anticipates trends in consumer behavior, regulatory frameworks, and global dynamics.
The budget will impact hotels & tourism in the following ways:-
- Tourism states will be motivated to enhance iconic tourist centers to stimulate business and foster local entrepreneurship.
- States will receive long-term interest-free loans to foster development efforts.
- The G20 meetings across 60 locations showcased India’s diversity to a global audience.
- Initiatives for port connectivity, tourism infrastructure, and amenities will be initiated in islands, including Lakshadweep.
Furthermore, how the budget affects hotels and tourism stocks depends on many things like government rules, how the market is doing, and trends around the world. It is important for investors to look at these factors and spread out their investments to lower the risks linked to tourism. We can assist you in reducing some of these risks.
we discuss about three stocks in this aspect:-
India Tourism Development Corporation (ITDC): Established in 1966, ITDC is a key player in India’s tourism sector, working under the Ministry of Tourism to boost tourism and develop related infrastructure. It offers event management, consultancy, and retail services, and partners with various entities to promote tourism, contributing to economic growth and job creation.
East India Hotels Limited (EIH Ltd.): Founded in 1949, EIH Limited is known for its luxury Oberoi and Trident hotels, serving both domestic and international travelers. Its properties are celebrated for their fine dining, modern amenities, and scenic locales, making them popular for high-end events and retreats.
Indian Hotels Company Limited (IHCL): Since 1903, IHCL, the company behind Taj Hotels, has been a significant force in India’s hospitality industry, offering luxury stays and services through its Taj, Vivanta, and SeleQtions brands, catering to various market segments.
Here are the Peer Comparison of important data analysis of EIH, IHCL & ITDC Stocks:-
| Key Metrics | EIH Ltd | IHCL | ITDC |
|---|---|---|---|
Market Capital | ₹ 21,069 Cr. | ₹ 71,193 Cr. | ₹ 7,204 Cr. |
Stock P/E | 46.1 | 60.9 | 98.1 |
Book Value | ₹ 56.00 | ₹ 58.20 | ₹ 41.09 |
Dividend Yield | 0.33 | 0.19 | 0.27 |
ROCE | 15.60 | 12.60 | 28.00 |
ROE | 11.40 | 12.70 | 18.60 |
Face Value | ₹ 2.00 | ₹ 1.00 | ₹ 10.00 |
Industry P/E | 40.7 | 40.7 | 40.7 |
Debt To Equity Ratio | 0.06 | 0.33 | 0.00 |
Sales Growth | 54.6 % | 28.3 % | 42.0 % |
Sales Growth 3 Years | 8.14 % | 9.19 % | 10.2 % |
Profit Growth | ₹ 273 | ₹ 60.8 | ₹ 193 |
EPS(TTM) | 6.78 | 8.22 | 8.54 |
EBITD Last Year | ₹ 687 | ₹ 1883 | ₹ 92.1 |
OPM (Operating Profit Margin) | 31.6 | 31.3 | 17.9 |
Budget Impact On Railway Stock:
In the 2024 budget, the government has announced plans to renew approximately 40,000 bogies, converting them to meet Vande Bharat standards. This announcement has a significant impact not only on companies manufacturing wagons but also on those financing the renewal process.
- Bogies are critical components of railcars, and their renewal suggests a focus on enhancing safety, efficiency, and reliability in the railway network.
- Conversion of bogies to meet Vande Bharat standards signifies a push towards modernization and standardization in the Indian railway sector.
- Companies involved in the manufacturing of bogies stand to benefit from the government’s initiative.
- Financing the renewal of 40,000 bogies represents a substantial investment, potentially involving loans, leasing arrangements, or public-private partnerships.
All these functions are carried out by a stock known as IRFC. IRFC plays a crucial role in financing the expansion, modernization, and maintenance of India’s vast railway network.
Indian Railway Finance Corporation Limited, is a specialized financial institution in India that primarily focuses on financing the development and expansion of the country’s extensive railway infrastructure. Established in 1986, IRFC operates as a wholly-owned subsidiary of the Ministry of Railways, Government of India.
IRFC’s primary mandate is to raise funds to finance various projects undertaken by Indian Railways. These projects include the acquisition of rolling stock (such as locomotives, coaches, and wagons), infrastructure development (such as track laying, electrification, and signaling systems), and other operational requirements.
Here are the important data analysis of IRFC Ltd:-
| Key Metrics | IRFC Ltd. |
|---|---|
Market Capital | ₹ 2,10, 272 Cr. |
P/E Ratio(TTM) | 34.59 |
ROE (Return On Equity) | 12.72 % |
Industry P/E | 25.65 |
Debt To Equity Ratio | 8.52 |
Sales Growth (TTM) | 23 % |
Sales Growth Last 3 Years | 21.2 % |
Profit Growth | -6.11 % |
OPM (Operating Profit Margin) | 99.5 % |
Budget Impact on Defense Sector:
The 2024 budget’s influence on the defense sector is profound. The government has unveiled plans to introduce a new program aimed at bolstering cutting-edge technology for defense purposes and accelerating Atmanirbhar Bharat.
Governments focus on several key areas in the defense sector within their budgets. These are :-
- Governments often allocate funds to modernize military equipment, infrastructure, and technology to enhance defense capabilities.
- Budgets may prioritize investments in R&D to foster innovation and develop advanced defense technologies, such as cybersecurity, artificial intelligence, and unmanned systems.
- Resources might be allocated to recruit, retain, and train military personnel to ensure readiness and effectiveness in addressing evolving security challenges.
- As part of broader economic and national security objectives, budgets may include initiatives aimed at promoting indigenous defense production and reducing dependency on foreign imports.
- Investments in border infrastructure, surveillance systems, and border management agencies may be prioritized to enhance border security and address cross-border threats.
The usual provider for all these activities is typically a company called HAL. Hindustan Aeronautics Limited (HAL) is one of Asia’s largest aerospace and defense companies, headquartered in Bangalore, India. Established in 1940, HAL has played a pivotal role in shaping India’s aviation industry and bolstering its defense capabilities.
HAL is renowned for its expertise in designing, manufacturing, and servicing a diverse range of aircraft, helicopters, engines, avionics systems, and related aerospace products. The company’s portfolio includes both military and civilian aircraft, serving various roles such as fighters, trainers, transporters, and helicopters for defense and commercial applications. HAL’s notable achievements include the production of iconic aircraft like the HAL Tejas, India’s first indigenous multi-role fighter aircraft, and the HAL Dhruv, an advanced light utility helicopter widely used by military and civilian operators.
The company also provides comprehensive maintenance, repair, and overhaul (MRO) services for aircraft and helicopters, ensuring their operational readiness and longevity throughout their service life. HAL continues to be a cornerstone of India’s aerospace and defense industry, driving innovation, fostering self-reliance, and contributing to the nation’s progress in aviation technology and defense preparedness.
Here are the important data analysis of Hindustan Aeronautics Limited (HAL):
| Key Metrics | Hindustan Aeronautics Limited (HAL) |
|---|---|
Market Capital | ₹ 1,96,954 Cr. |
Stock P/E | 32.6 |
ROE | 27.2 % |
Dividend Yield | 0.93 % |
Sales Growth | 5.69 % |
Sales Growth Last 3 Years | 7.88 % |
Profit Growth | 3.23 % |
Industry P/E | 69.1 |
OPM | 24 % |
Budget 2024 Puts Focus On Rural Homes And Homes For The Middle Class:
The Finance Minister has declared the expansion of the PM Awas Yojana(Gramin) to construct an additional two crore houses, along with the introduction of a fresh scheme targeting middle-class individuals residing in rented accommodations, slums, chawls, or unauthorized colonies.
Governments focus on several key areas for rural homes and homes for the middle class within their budgets. These are:-
- The scheme aims to build an additional two crore houses, thereby reaching its target of three crore houses.
- Efforts are being made to promote inclusivity and ensure sufficient living spaces for everyone.
- This initiative is crucial as India endeavors to reach a USD 7 trillion economy by 2030, requiring strong urban infrastructure to accommodate the growing population.
- Empowering individuals to buy or construct their own homes not only realizes their aspirations but also fosters a more robust and resilient community.
There are two stocks in his aspects:-
Housing and Urban Development Corporation Limited (HUDCO): A public sector entity established in 1970, HUDCO finances housing and urban infrastructure in India, working under the Ministry of Housing and Urban Affairs. It supports sustainable urban development and quality of life improvements through financial and advisory services to various stakeholders.
National Buildings Construction Corporation Limited (NBCC): Founded in 1960, NBCC is a government enterprise that constructs civil infrastructure across multiple sectors. It focuses on redeveloping existing structures and building new residential, institutional, and infrastructural projects, both domestically and internationally.
Here are the Peer Comparison of important data analysis of HUDCO & NBCC Stocks:-
| Key Metrics | HUDCO | NBCC |
|---|---|---|
Market Capital | ₹ 39,608 Cr. | ₹ 28,449 Cr. |
Stock P/E | 22.1 | 75.6 |
ROE | 11.4 % | 19.0 % |
Industry P/E | 17.5 | 37.7 |
Dividend Yield | 1.95 % | 0.34 % |
Sales growth | 5.13 % | 11.0 % |
Sales growth 3Years | -2.19 % | 8.94 % |
Profit growth | 2.36 % | 5.85 % |
OPM | 97.2 % | 4.41 % |
Summary:
“The 10 Best Stocks To Invest in 2024: Must Be In Your Portfolio To Build Wealth” likely outlines a guide or listicle highlighting ten promising stocks for investment in the year 2024. The title suggests that these stocks are essential additions to a portfolio aimed at wealth accumulation.
In the summary, one might expect the article to detail the criteria used to select these stocks and provide insights into the industries or sectors they represent. Additionally, it could discuss factors such as growth potential, market trends, financial performance, and strategic analysis that make these stocks stand out as lucrative investment opportunities for the year 2024.
Furthermore, the article may offer advice on portfolio diversification, risk management, and long-term investment strategies, emphasizing the importance of including these specific stocks for individuals looking to build wealth through the stock market in 2024.
Conclusion:
In conclusion, the selection of the “10 Best Stocks To Invest in 2024” serves as a strategic roadmap for investors aiming to build wealth in the dynamic landscape of the stock market.
By incorporating these carefully chosen stocks into one’s investment portfolio, individuals can capitalize on emerging trends, innovative technologies, and evolving consumer preferences across various sectors. Furthermore, the diversification offered by these stocks helps mitigate risk and enhances the potential for long-term returns.
As investors navigate the complexities of the financial markets, it is essential to remain informed, adaptable, and patient. While no investment is devoid of risk, the prudent selection of these top stocks aligns with the objective of securing financial well-being and capitalizing on opportunities for wealth accumulation in 2024 and beyond.
List of top 5 Stocks for 2024.
- HDFC Bank Ltd.
- IREDA
- Titan Company Ltd.
- Azad Engineering Ltd.
- IRCTC Ltd.
- Tata Power
Motilal Oswal has identified SBI, Hero MotoCorp, Spandana Sphoorty, Larsen & Toubro, and Dalmia Bharat as some of its top stock picks. According to Motilal Oswal, the Nifty is currently trading at a 12-month forward PE ratio of 19 times, which represents a discount compared to its 10-year average. As part of its outlook for 2024, Motilal Oswal has curated a list of 10 stocks worth considering for investment.
Nuvama has reiterated its Buy recommendation for ITC but has revised its target price downward to Rs 535 from the previous target of Rs 560. Although the company’s Q3 revenue and PAT surpassed expectations, there was disappointment in cigarette volumes, according to the brokerage. Additionally, the EBITDA fell short of estimates.
- HDFC Mid-Cap Opportunities Fund.
- Parag Parikh Flexi Cap Fund.
- ICICI Pru Bluechip Fund.
- HDFC Flexi Cap Fund.
- Nippon India Small Cap Fund.
- HDFC Balanced Advantage Fund.
- Kotak Nifty Small cap 50 Index Fund Direct Growth.
- ICICI Prudential Corporate Bond Fund.
- ICICI Prudential Equity & Debt Fund.
- LIC MF Gold ETF FoF.
Analysts suggest that the infrastructure, tourism, defense, consumption, and railway sectors are poised to gain substantially from the announcements unveiled on February 1. Notably, Public Sector Undertaking (PSU) stocks surged on Budget day, despite marginal declines in the Sensex and Nifty headline indices.