5 Top Private BFSI Sector Stock-Picks To Buy, Leading Brokerage Estimates Target Price

Indian stock markets traded mostly flat today, on November 22, Nifty closed at 18,244.20 points at the time of writing. Emkay Global Gives Buy ratings to these 5 stocks, from the Banking, Financial Services and Insurance (BFSI) sector.

Giving a buy rating, Emkay Global has estimated Rs. 1,110 as the target price for the stock of Axis Bank.

Giving a buy rating, Emkay Global has estimated Rs. 1,800 as the target price for the stock of HDFC Bank

Giving a buy rating, Emkay Global has estimated Rs. 1,170 as the target price for the stock of ICICI Bank.

Giving a buy rating, Emkay Global has estimated Rs. 1,500 as the target price for the stock of INDUSIND Bank.

Giving a buy rating, Emkay Global has estimated Rs. 2,230 as the target price for the stock of KOTAK Bank.

Recommending these three private banking stocks to buy, Emkay Global said, "Among large private banks (PVBs), ICICI Bank reported strong earnings growth despite an additional contingent buffer of Rs. 15bn, taking it to 1% of loans - the highest in the industry. Axis lagged on the growth front, but surprised positively with a margin uptick for a second quarter in a row. Among small/mid-size PVBs, IIB disappointed a bit on the margins front, possibly due to its higher share of fix rate book. However, Federal Bank, CUBK, KVB and Ujjivan SFB reported a strong beat on earnings. Bandhan Bank registered weaker than expected profitability due to asset-quality clean up, but a meaningful uptick is likely in 4Q."

The brokerage firm added, "Despite the recent run-up, we believe select banks still offer a blend of growth and value and, thus, will continue to outperform. Among private banks, ICICI remains our top pick, as it offers a strong balance of higher growth/RoE, unseen in the past, and a safety buffer with a strong capital/provision cover, while valuations (2.3x FY24E ABV) too still have some scope to inch-up. Axis Bank at 1.6x FY24E ABV and IIB at 1.5x FY24E ABV too offer a good value play. HDFCB has recently benefited from technical factors, but the merger structure remains an overhang. Among mid-/small-cap PVBs, CUBK, Federal, KVB and Equitas remain our preferred picks."

Disclaimer

The above stocks were picked from the brokerage reports by Emkay Global. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.