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4 Stocks Get Buy, 1 Gets Hold Call: ICICI Direct Recommends Best Stocks For 2023
ICICI Direct has recommended investors in its latest report to buy Reliance Industries, HDFC AMC, IndusInd Bank, Sheela Foam, and hold JSW Steel for year 2023. If you buy these stocks now, you will get potential 33% return. Check key takeaways below:
| Name of company | Potential return |
|---|---|
| Sheela Foam | 33% |
| IndusInd Bank | 26% |
| HDFC Asset Management Company Ltd | 25% |
| Reliance Industries | 22% |
| JSW Steel | Hold |
1. Buy Sheela Foam
ICICI Direct has recommended investors to buy Sheela Foam Ltd (SFL) with a target price of Rs 1650 apiece. If you buy Sheela Foam, you will get potential return of 33%.
The last trading price of the stock is Rs 1241 apiece with an intraday decline of 0.04%. The mid cap stock's 52-week high is Rs 2027 apiece and 52-week low is Rs 1204 apiece, respectively.
The company has a market capitalisation of Rs 12,117 crore. The stock has given return of 95% in last 3-years and 48% in last 5-years.
According TO ICICI Direct, "With fundamentals remaining unchanged and with unchanged estimates, we maintain our BUY rating on the stock. Our target price, however, is now revised to Rs 1650/share i.e. 50x PE on FY24 EPS of Rs 33/share."
SFL has received approval to supply foam to Indian Railways for Vande Bharat trains. This, coupled with a revival in the auto business, will help drive the company's technical foam business, going forward.
2. Buy IndusInd Bank
ICICI Direct has suggested investors to buy IndusInd Bank shares with a target price of Rs 1450 apiece and potential return of 26%.
The last trading price of IndusInd is Rs 1147 apiece with a market capitalisation of Rs 88978 crore. The large cap stock has given return of 32% in last 1-year and declined 23% in last 3-years.
According to ICICI Direct, "IndusInd Bank's share price has gained ~2x in the past two years. Structural levers - robust business growth, uptick in NIM and moderation in provision are seen enabling the bank to generate RoA of 1.6-1.7% in FY23-25E, thereby aiding valuation. We retain our BUY rating on the stock. Rolling over our valuation, we now value the bank at ~1.65x FY25E ABV and revise our target price from Rs 1350 to Rs 1450 per share."
3. Buy HDFC AMC
The analyst has recommended investors to buy HDFC Asset Management Company Ltd with a target price of Rs 2600. If you buy HDFC Asset Management Company Ltd now, you will get potential 25% return.
The last trading price of the stock is Rs 2078 apiece with an intraday dip of 4.69%. The large cap company has a market capitalisation of Rs 44,328 crore. The stock's 52-week high is Rs 2535 apiece and 52-week low is Rs 1690 apiece, respectively.
The stock has given return of 10% in last 3-months. It has declined 35% in last 3-years and 12% in last 1-year.
According to ICICI Direct, "HDFC AMC's share price has remained flattish in the past one year led by subdued industry AUM, volatility in market share of HDFC AMC. We upgrade the stock from HOLD to BUY. Anticipated improvement in market share on the back of healthy scheme performance and superior earnings trajectory makes us positive on the stock. Rolling our estimates, we value the business at ~32x FY25E EPS and revise our target from Rs 2200 to Rs 2600."
4. Buy Reliance Industries
The analyst has recommended investors to buy Reliance Industries with a target price of Rs 3050. If you buy Reliance Industries shares now, you will get potential 22% gain.
The last trading price of the stock is Rs 2501 apiece with an intraday decline of 2.96%. The company has a market capitalisation of Rs 16,92,411.37 crore. The large cap stock has given 171% return in last 5-years and 59% in last 3-years, and 6% in last 1-year.
According the brokerage firm, "Long term prospects and dominant standing of RIL in each of its product & service portfolio provide comfort for long term value creation. RIL's consumer business will be the growth driver, going ahead. We revise our rating on the stock from HOLD to BUY. We value RIL at Rs 3050 on an SoTP basis."
5. Hold Shares Of JSW Steel
The analyst has maintained hold rating for JSW Steel with a target price of Rs 725 apiece. The last trading price of the stock is Rs 727 apiece with an intraday decline of 1.34%.
The company has a market capitalisation of Rs 1,75,840.70 crore. The large cap stock has given 175% return in last 5-years, 176% return in last 3-years, and 19% in last 1-year.
According to the analyst, "JSW Steel's share price has given a return of ~19% over the last one year (from ~Rs 623 in December 2021 to ~Rs 740 in December 2022). We maintain our HOLD rating on the stock. We value JSW Steel at Rs 725, 6.5x FY24E EV/EBITDA."
Disclaimer
The stocks have been picked from the brokerage report of ICICI Direct. 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.
