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Top 5 Stocks to Buy for Your Sister this Rakshabandhan

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12 Aug 20246 mins readBy MOFSL

Rakshabandhan, a cherished festival, is more than just a symbol of the bond between brothers and sisters; it’s a promise of protection, love, and care. Traditionally, brothers shower their sisters with gifts that range from sweets to jewellery. But in today’s rapidly evolving world, why not take a step further? This Rakshabandhan, consider a gift that not only symbolizes your love but also contributes to your sister’s financial well-being—invest in her future by gifting her shares in companies with strong growth potential and stability. Here are five top stocks that can serve as thoughtful and meaningful investments, each reflecting a facet of a strong and enduring relationship.

1. Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited, a household name in the FMCG sector, stands as a symbol of stability and trust. Its portfolio of essential products that cater to everyday needs makes it a safe and steady investment choice. Gifting HUL shares is akin to securing your sister’s financial future, much like HUL secures essentials in homes across the country. HUL’s performance in 1QFY25 was solid, with a 2% year-over-year sales growth and a 4% increase in volume, driven by steady demand and rural recovery. The gross margin expanded to 52%, indicating robust financial health. With a current recommendation at ₹2766 and a target price of ₹3250, HUL shares could be a foundation for long-term financial security.

2. Bharti Airtel

As one of India’s leading telecom players, Bharti Airtel’s strong market presence and ongoing expansion into 5G make it a compelling investment opportunity. By gifting Bharti Airtel shares, you’re not just investing in a company but also in the future of connectivity and technological advancements. In 1QFY25, Airtel’s revenue and EBITDA grew by 2% quarter-over-quarter, bolstered by strong performance in both its India Mobile and Africa operations. The company’s subscriber base has seen a 2.5x growth over three years, and its recent expansion to 1,317 cities from just 100 in FY20 reflects its aggressive growth trajectory. Currently recommended at ₹1469 with a target of ₹1654, Airtel shares symbolize a connection to emerging opportunities.

3. Zomato

Zomato, a dominant player in the food delivery space, has seen exponential growth as more consumers turn to digital platforms for their dining needs. Gifting Zomato shares offers a stake in the thriving digital economy, emphasizing the transformative power of technology in everyday life. Zomato’s Q1FY25 results were impressive, with a 74% year-over-year revenue increase driven by strong performances from Hyperpure and Blinkit. The company’s food delivery segment grew by 42% YoY, and Blinkit’s GMV surged by over 100%, positioning Zomato for sustained growth. With an anticipated overall GMV growth of 75% CAGR over FY24-28E, Zomato shares, recommended at current levels, could be a valuable addition to your sister’s financial portfolio.

4. Kirloskar Oil Engines

Kirloskar Oil Engines, a leading manufacturer of diesel engines and generators, has a legacy of reliability and innovation. This company’s products are critical in industrial and agricultural sectors, making it a steady investment choice. Gifting Kirloskar Oil Engines shares represents an investment in a company that powers progress across various industries. The company’s earnings grew by 7% in Q1FY25, with net sales rising 6% to ₹1,334 crore. Consistent performance, an improved product mix, and increased exports are driving a re-rating of the stock, currently recommended at ₹1165 with a target of ₹1500.

5. KEI Industries

KEI Industries, a leader in the manufacturing of cables and wires, plays a vital role in powering the infrastructure and power sectors. With a strong market presence and growing demand, KEI is well-positioned for continued growth. Gifting KEI shares is like investing in the backbone of essential infrastructure, reflecting a commitment to long-term growth. KEI’s 1QFY25 results showed a 16% year-over-year revenue increase, driven by strong growth in its Cables & Wires and EPC segments. The company’s profit also saw a 24% YoY increase, with an improved gross margin of 24.4%. With a recommendation at ₹4324 and a target price of ₹5250, KEI shares represent a solid investment in the essential services that power our world.

This Rakshabandhan, consider a gift that goes beyond tradition and into the state of meaningful, long-term benefits. By investing in these stocks, you’re not only securing your sister’s financial future but also reinforcing the timeless bond that Rakshabandhan represents. Each of these stocks carries the potential for growth, much like the love and care you have for your sister. Happy Rakshabandhan, and may your investments bring prosperity and happiness to your loved ones.

But before you start investing, it is mandatory that you open a DEMAT Account to keep your securities safe. At Motilal Oswal, you can now Open a DEMAT Account for free of cost and also avail the offer to pay 0 Brokerage for 1st month up to Rs 1000. 

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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