2 ICICI Group Stocks To Buy For Potential Upside Of 27%

Motilal Oswal has come-out with its latest report titled 'India Strategy: Braving the storm'. According to the report, India has emerged as a shining star in CY22, with healthy outperformance amid varied global headwinds. Here are two stocks to buy, picked from the Motilal Oswal report.

ICICI Securities

The brokerage has set a price target of Rs 640 on the stock of ICICI Securities, which is nearly 25% higher from the current market price of Rs 511.50.

Current market price	Target price	Gain%
512	640	25%

According to the brokerage, broking revenue to improve, led by recovery in Cash volumes and sustained increase in F&O volumes. "Investment banking revenue is expected to improve to as advisory segment saw a pick up. Distribution income to improve sequentially; life insurance segment gains from a seasonally low base in 1Q Distribution income to improve sequentially; life insurance segment gains from a seasonally low base in 1Q," the brokerage has said.

Buy the stock of ICICI Lombard

Another stock that the 'India Strategy: Braving the storm' report of Motilal Oswal mentions is the stock of ICICI Lombard. The brokerage has set a price target of Rs 1430 on he stock, as against the current market price of Rs 1121.

Current market price	Target price	Gain%
1121	1430	27%

According to the brokerage, premium growth is to be strong, driven by health (more so Group segment) and Motor TP. Claim ratios are likely to moderate sequentially while expense ratio to be flattish. The Integration of Bharti Axa and increasing investments in the retail health channel will be key. The Combined ratio to be in the guided range of 103-104%," the brokerage has said.

Indian markets looking good

According to the report, India has emerged as a shining star in CY22, with healthy outperformance amid varied global headwinds on macros, inflation, rates, currency and geopolitics. While most global equity markets are down 20-25% in YTD'CY22, India is resilient (in local currency).

"MSCI India and MSCI China were closely following each other until Sep'20. In the last two years, however, the gap widened and became a gulf," the brokerage has said.