Diwali Picks 2024 | Angel One, Fiem Industries, Arvind Fashions among YES Securities' top bets

Fiem Industries: YES Securities believes Fiem is set to capitalize on strong industry tailwinds, with India’s two-wheeler market projected to grow at a CAGR of 8-9 percent over the next five years, driven by rising urbanization and increasing disposable incomes. On that account, the firm assigned the stock a price target of Rs 1,980. "Fiem’s long-standing relationships with major clients, including TVS Motors, Yamaha, and Suzuki, alongside newer partnerships with leading EV players like Ola Electric and Hero Electric, underline its industry strength," YES Securities said.

Angel One: The stock emerged in the list of top bets chosen by YES Securities on the back of strong industry tailwinds. Recent trends indicate a shift with young investors increasingly willing to take on some risk by investing in the stock market and diversifying their portfolios beyond traditional assets. On this backdrop, a record 36.9 million demat accounts were opened in FY24 & this number for 1HFY25 already stands at 24.1 million indicating the upsurge for full year. Despite facing a near-term challenging market environment marked by regulatory changes such as SEBI’s “True to Label” norms, Angel One’s management remains optimistic about sustaining growth. The company plans to implement several measures, including levying a brokerage fee of Rs 20 per order or 0.1 percent of the order value (with a minimum brokerage of Rs 2 for delivery trades. Additionally, it will charge an interest rate of 12.5 percent per annum on cash-collateral margin shortfalls exceeding Rs 50,000. Factoring these in, YES Securities assigned a price target of Rs 3,755 for the stock.

Karur Vyas Bank: YES Securities likes that the lender is strategically focused on de-risking and high-quality lending, away from corporate and consortium lending, which has astutely minimized exposure to high-stress sectors, aligning with its traditional emphasis on retail & MSME. Given its growing loan book, improved growth trajectory, and a more resilient balance sheet, YES Securities sees Karur Vyas Bank as a compelling investment proposition, all set to achieve sustained profitability and market share gains across India’s evolving banking landscape. Accordingly, the firm gave a target price of Rs 270 for this stock.

Arvind Fashions: India's apparel and accessories market was valued at approximately Rs 5,512 billion in FY’23 and is expected to increase its retail share from 7.2 percent to 9.4 percent by 2027. The sector is projected to grow at a compound annual growth rate (CAGR) of 20.8 percent, positioning it as the fastest-growing segment in retail. In this backdrop, Arvind Fashions has streamlined its portfolio to concentrate on five key brands: Arrow, U.S. Polo Assn., Calvin Klein, Tommy Hilfiger, and Flying Machine, following the divestment of Sephora. "With rising disposable incomes in Tier 2 and Tier 3 cities, the company is poised to capitalize on the growing demand for premium products. The company is focusing on premiumization through its established brands while revitalizing others, such as Arrow and Flying Machine, with refreshed product portfolios. This strategy aims to enhance brand visibility, align with consumer preferences for quality and modernity, and strengthen AFL's competitive edge in the expanding premium market," YES Securities said. It assigned a price target of Rs 705 for the stock.