Diwali Picks 2022

Muhurat Trading: Diwali 2022

We worship Ganesh Jee and Ma Laxmi on the occasion of Diwali every year and seek their blessings for our well-being, prosperity and wealth. In 2022, Diwali will be celebrated on 24th October and we all are already enjoying the festive season since few days.

On the auspicious occasion of Diwali, Indian Stock Market will be open for trading and investors can add some stocks as muhurat investments in their portfolio. Let's first check out what is the timing for Muhurat Trading this year.

Date: 24th October 2022

Block Deal Session: 5:45 PM - 6:00 PM

Pre-open Session: 6:00 PM - 6:08 PM

Market Hours: 6:15 PM - 7:15 PM

Investors buy stocks with a long term perspective as it is believed that Muhurat Trading brings wealth, prosperity and stability to the portfolio. Stocks from various sectors like Banking, Automobile, FMCG, Realty may be in good demand this year.

Investors can consider buying following stocks in their portfolio this Diwali for 12 - 18 Months time frame. Also, for regular market updates by R G Wealth Management you can join our WhatsApp group through this link https://chat.whatsapp.com/KXibn12WalmEWekWyoqx9t

• Maruti Suzuki: CMP - 8699 (Potential Upside 25%)
• IDFC First Bank: CMP - 57 (Potential Upside 20%)
• Metro Brands: CMP - 898 (Potential Upside 18%)
• Siemens: CMP - 2818 (Potential Upside 20%)
• Lemon Tree Hotel: CMP - 84 (Potential Upside 20%)
• Zee Entertainment: CMP 267 (Potential Upside 20%)
• Chola: CMP 711 (Potential Upside 25%)
• Devyani International: CMP 191 (Potential Upside 18%)

As a new approach, investors these days prefer to invest through SIP in fundamentally strong stocks in order to beat volatility and reduce the risk. 

We highly recommend to invest only after consulting your financial advisor and understanding the risk involved in securities market.

R G Wealth Management wishes you all a very Happy and Prosperous Diwali.

IPO Update: Supriya Lifescience Limited

Company Introduction: Supriya Lifescience has evolved into one of the key chemical manufacturers and suppliers of active pharmaceutical ingredients (APIs). Over the last three years, the company has posted strong financial performance. Its revenue and profit have risen steadily, aided by growth in domestic and export pharma markets. This API manufacturer is now all set to launch its ₹700 crore IPO and list on the exchanges.

IPO Update: C.E. Info Systems Limited (MapMyIndia)

Company Introduction: In 1995, a US-returned techie started a then impossible journey of mapping entire India. This was ten years before the launch of Google maps! Today, the company founded by Rakesh Verma and Rashmi Verma provides digital maps and location-based IoT (Internet of things) technologies to some of the biggest companies in India. Under the ‘MapmyIndia’ brand, its digital maps cover 98.5% of Indian roads. It runs a profitable business and has low variable costs. Even the government of India uses its mapping services for the CoWIN App. 

IPO Update: Tega Industries

Company Introduction: Tega Industries (Tega) manufactures components of mining equipment. These components are used across different stages of mineral ore processing. Tega Industries manufactures specialized mining equipment components such as grinding mill-liners, chutes, pump parts, conveyors belts, etc. which are used in mineral processing. These components are critical to Tega’s clients as they not only help to improve operational efficiency of the mineral processing but also reduce the production downtime. 

IPO Update: Go Fashion India Limited

Company Introduction: Established in 2010, Go Fashion is a women’s bottom-wear brand in India that not only designs but also retails its products. Its products are sold under the brand, ‘Go Colors’.

This apparel maker and retailer is now launching its public issue. Here’s all you need to know about this IPO

Go Fashion (India) IPO opened for subscription today as the company looks to raise Rs1,014 crore from the primary market. Apparel brand Go Fashion’s public issue is a mix of a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders of the company. The issue is offered to investors in a fixed price band of Rs 655-690 per share from today.

IPO Timeline

    Application start

17-11-2021

Application end

22-11-2021

Allotment begins

25-11-2021

Refund Initiation

26-11-2021

Allotment date

29-11-2021

Listing on exchange

30-11-2021

Key Strengths

• Wide range of products as compared to it's competitors 

• Strong retail presence through brand outlets, large store formats, multi-brand outlets and even online.

• Company's store count rose from 70 outlets in 2015 to 450 outlets 2021 indicating aggressive rollout and wider outreach.

• The average selling price of Go Colors of about ₹ 600 per piece helps it cater across income segments and penetrate deeper in Tier 3 and 4 towns.

• The company has implemented end-to-end automation for inventory operation which helps the  company to avoid stock out and ensure sufficient supply at stores.

• Demonstrated strong track record of financial performance. In the FY20, the company’s ROCE was the highest among all major retail led women’s apparel brands in India.

Key Weaknesses

• Company's dependency on a single brand and product strategy. 

• Impact of the pandemic is one of the risk for the company. Go Fashion had to shut down, both temporarily and permanently, many of its stores and kiosks at different locations.  

• Its six trademarks are still pending for registration and a lack of protection could mean third-party infringement. 

• Fashion trends change rapidly. A sudden deviation in consumer preferences could make the business redundant. 

• Go Fashion does not own any manufacturing facilities and depends on suppliers and job workers to produce its products. Any disruption in their work could impact the output of the business. 

Business Growth Opportunities

• While the overall women’s bottom-wear market is expected to grow at about 12%, organized market is expected to grow at a faster clip of 24% CAGR between 2020 and 2025.

• The size of organized women bottom-wear market is expected to reach ₹9,200 crore by 2025.

• Leveraging its own online platform and e-commerce channels can help the company grow its customer base further.

Open your free Online Demat Account and Start Investing in IPOs & Stocks

1️⃣ Upstox - https://bit.ly/UpstoxDematOpeningRGW

2️⃣ ICICI Direct - https://bit.ly/ICICIDematOpeningRGW