3 Stock To Buy, Hold, Add: ICICI Securities Latest Best Stocks Recommendation

Brokerage firm ICICI Securities has recommended investors to buy 3 stocks in its latest report for good returns. These stocks are Axis Bank, Zomato, Karur Vyasya Bank. ICICI Securities has maintained buy call for Axis bank, add call for Karur Vysya Bank, and hold call for Zomato Ltd. Check details below:

1. Buy Axis Bank

The brokerage has assigned buy call to Axis Bank with a target price of Rs 1130 apiece. Last trading price of Axis Bank is Rs 910.05 apiece with intraday decline of 2.50%. The stock's 52-week high is Rs 970.45 apiece and 52-week low is Rs 618.10 apiece, respectively.

If you buy Axis Bank now, you will potentially receive 24% return. 

 

The company has a market capitalisation of Rs 2,79,885.42 crore. In last 1-year, Axis Bank has given 29% return, 23% return in last 3-years, and 50% return in last 5-years.

Axis Bank's (Axis) Q3FY23 earnings beat I-Sec and consensus expectations reporting PAT of Rs58.5bn - up 10% QoQ/ 62% YoY. Once again, it reported consolidated RoA (annualised) at 2.0% and RoE at 19.8%.
According to ICICI Securities, "NIMs settling much higher than the steady-state guidance and growth in focused segments would sustain current earnings trajectory. Maintain BUY with an unchanged target price of Rs1,130 assigning 2.3x FY24E book."

 

2. Hold Zomato Ltd

ICICI Securities has assigned hold call to Zomato Ltd with a target price of Rs 65 apiece. Current market price of Zomato is Rs 52.10 apiece with intraday gain of 2.16%. The stock's 52-week high is Rs 114.00 apiece and 52-week low is Rs 40.55 apiece, respectively. The company has a market capitalisation of Rs 44,554.59 crore.

The stock rallied over 3% in last 1-week, declined 16% in last 3-months, and 42% in last 1-year.

The company was incorporated in 2010 and operates in Services sector. Zomato for the quarter ended September 30, 2022 declared a consolidated total income of Rs 1830.80 crore, up 15.73% from last quarter total income of Rs 1582.00 crore.

3. Add Karur Vyasya Bank

The analyst has recommended Add Rating for the stock with a target price of Rs 120 apiece. The last trading price of the banking stock is Rs 108.65 apiece. The stock's 52-week high is Rs 116.00 apiece and 52-week low is Rs 41.75 apiece, respectively.

It has a market capitalisation of Rs 8,693.50 crore. The banking stock has given very strong return in last 1-year at 134% and in just 6-months, the return was 101%. The stock rallied 102% in last 3-years. It came into existence in 1916.

Karur Vysya Bank's (KVB) Q3FY23 financial performance was characterised by its aggressive approach in cleaning up the balance sheet (written-off loans amounting to Rs7.5bn) and sustained improvement in core operating performance. RoA at 1.3% during Q3FY23 is ahead of guidance - earlier the management was expecting 1.2% RoA by Q4FY23.

According to ICICI Securities, "We believe KVB'S upgraded digital platform, cost optimisation drive and gradual normalisation of credit cost would help sustain RoA at current levels. Maintain ADD with a revised target price of Rs120 (earlier: Rs100) as we increase our PBV multiple to 1.2x (earlier: 1.0x) on Sep'23 BVPS considering improved visibility on it sustaining current profitability."

 

Disclaimer

The stocks have been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.