5 Largecap Stocks To Buy For Upto 24% Upside - Diwali Picks Stocks: Top Brokerage Suggests

The Indian stock markets recovered marginally today. The Nifty gained to 17,512.25 points, and the Sensex gained to 59,107.19 points. Here, the top 5 large-cap stocks have been discussed to invest in this Diwali, as suggested by top brokerage firm Ashika.

Oracle Financial Serv. Soft. - stock performances

The current market price of Oracle is Rs. 2,940/ share, and Ashika has estimated a target price for the stock at Rs. 3,640/share, and given a buy rating with a 23.8% potential return. The brokerage firm stated, "During FY22, OFSS announced 68 new unique deals as compared to 58 deals in FY21. The deal wins were across its products offerings but bulk of them is in corporate banking solutions. Analytics and Digital Experience continued to remain in traction as OFSS added about 21 deals featuring these products, respectively. Thus, we have positive view on Oracle Financial Services Software Ltd and recommend to Buy. The scrip is currently valued at P/E multiple of 11.2x on FY24E EPS."

PI Industries

The current market price of PI Industries is Rs. 3,090/ share, and Ashika has estimated a target price for the stock at Rs. 3,740/share, and given a buy rating with a 21% potential return. According to Ashika, "PI has strong CSM order book of more than US$1.4bn, which provides long-term revenue growth visibility. In FY22, the company commercialized 9 new molecules and expects to launch 7 new molecules in FY23. More than 40 products in CSM division are at different stages of development. We recommend our investors to Buy. At the CMP, the scrip is valued at P/E multiple of 35.1x on FY24E EPS."

Page Industries

The current market price of Page Industries is Rs. 52,260/ share, and Ashika has estimated a target price for the stock at Rs. 62,000/share, and given a buy rating with a 18.6% potential return. Ashika stated, "The management is planning to gain market share by aggressively enhancing the distribution presence as well as filling product gaps. The company has rapidly scaled up the multi-brand outlet (MBO) network from about 65,000, pre-pandemic, to about 115,000 currently. Company has stated that its overall penetration in the men's inner-wear segment is about 18-20% currently. The scrip is currently valued at P/E multiple of 65.2x on FY24E Bloomberg consensus EPS of Rs. 801.7."

Infosys

The current market price of Infosys is Rs. 1,500/ share, and Ashika has estimated a target price for the stock at Rs. 1,730/share, and given a buy rating with a 15.3% potential return. The brokerage firm said, "Infosys' revenue from cloud adoption during 2QFY23 stood in excess of USD 1 billion and digital which formed close to 62% of revenue, grew by over 31% YoY. Among the business division, Energy, Manufacturing, Communication, Retail, and Life Sciences reported good performance. The strong execution and order booking has prompted Infosys to revise FY23 guidance and management increased the revenue guidance for FY23 from 14-16% to 15-16%. Management expects EBIT margin will be in the band of 21-22%, though it expects margin in FY23 to settle in lower band."

Reliance Industries

The current market price of Reliance Industries is Rs. 2,450/ share, and Ashika has estimated a target price for the stock at Rs. 2,850/share, and given a buy rating with a 16.3 potential return. According to Ashika, "Leveraging B2B growth and other online formats (eg, JioMart, Ajio), Retail added the highest number of new stores and sqft space in FY22 and the trend is expected to continue in FY23-24. Retail now accounts for a fourth of RIL's total revenue in FY22 from just 10% in FY16-17. In the past decade, Reliance Retail's international brand partnerships have risen threefold- from 14 in FY12 to 47 in FY22. RIL plans to launch 5G services in key cities by Diwali (Oct'22) and scale up to nationwide rollout (1,000 cities) by Dec'23."