2 Largecap Stocks To Buy For Upto 20% Return, Offering High Dividend Yield: ICICI Direct Suggests

Largecap stocks are much preferred by investors who have a lesser risk appetite but want to invest in the stock markets for high returns. The large-cap or bluechip stocks mostly perform better on the long-term scale. Here 2 such stocks have been mentioned, suggested by ICICI Direct, check details.

UltraTech

The current market price of UltraTech is Rs. 6,652/ share, and ICICI Direct has estimated a target price for the stock at Rs. 7,600/share, with a 14.25% potential return, and given buy rating. Its share price has surged by 66.32% in the last 5 years. It is a large cap stock with a market capitalization of Rs. 191,895.

The firm mentioned, "In our cement coverage, we also like UltraTech. It is a market leader with strong brand in the retail segment. It has a robust balance sheet and aims to become debt free by FY23E. Buy with a target price of Rs. 7,600/share."

Gail

The current market price of Gail is Rs. 133.10/ share, and ICICI Direct has estimated a target price for the stock at Rs. 160/share, with a 20.30% potential return, and given buy rating. It is a large cap stock with a market capitalization of Rs. 58,364. The PSU company is offering a high dividend yield of 7.51%.

"In our oil & gas coverage we also like Gail. Gail is India's leading gas transmission company, which is a beneficiary of increasing gas consumption. Stable volume growth along with higher profitability from gas trading, petchem and LPG segment due to higher oil prices will add value. Buy with a target price of Rs. 160," the brokerage firm stated.

Return comparison of stocks - NSE

In this table the Current Market Price (CMP) and the Target Price (TP) of the recommended stocks have been mentioned.

 

Company	CMP	Target Price	1 Year Potential Return
UltraTech	Rs. 6,652	Rs. 7,600	14.25%
Gail	Rs. 133.10	Rs. 160	20.30%

Disclaimer

The above stocks were picked from the brokerage report of ICICI Direct. 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.