The new year is commencing with most sectors — and stocks — being overvalued, according to Kotak's analysts. Here are four buy-rated Indian stocks with over 30% potential upside that analysts are betting on this Diwali. Kotak has a 12-month target price of 2,140 Indian rupees ($25.45) on the stock, implying around 40.8% potential upside. Other factors in its favor include regulatory tailwinds promoting recycling and the formalization of reverse charge mechanism on metal scrap, Kotak's analysts wrote in a Sept. 30 note. "SHK['s] tiny relative to global majors, but its technical capabilities are reputable," Kotak's analysts wrote in their Sept. 30 re-initiation report.

---

Persons: Kotak, Kelkar, Gabriel India, — Organizations: South, Kotak Securities, Bombay Stock Exchange, Industries Fiem Industries, India's National Stock Exchange, Company, BSE, Anand, Gabriel Locations: India, automotives