5 Small, Mid, Large Cap Stocks Showing Upside Potential, ICICI Securities Assigns Buy, Add Call

ICICI Securities appear bullish on top 5 stocks showing upward trend. The brokerage firm has assigned buy and add rating to these stocks. These stocks are Gujarat Fluorochemicals (Buy), Prince Pipes and Fittings (Buy), Multi Commodity Exchange of India (Add), Jindal Steel & Power (Buy), and InterGlobe Aviation (Buy). Check key details below:

1. Buy Gujarat Fluorochemicals

The analyst has recommended investors to buy Gujarat Fluorochemicals with a target price of Rs 4270 apiece. The current market price of the mid cap chemical stock is Rs 3099 apiece.

If you buy Gujarat Fluorochemicals now, you will get 38% upside. The company has a market capitalisation of Rs 34,050.75 crore. The stock has given maximum return of 406% in last 3-years.

According to ICICI Securities, "New fluoropolymers capacity expansion will immediately help in growing profits in FY23 and FY24; thereafter, the company is working on expanding presence in battery chemicals. We believe the recent sharp stock price correction offers good entry point. We retain BUY rating on the stock with an unchanged target price of Rs4,270 (30x FY24E EPS). It is among our top pick in specialty chemical sector."

2. Buy Prince Pipes & Fittings

ICICI Securities has assigned buy rating to Prince Pipes & Fittings Ltd with a target price of Rs 691 apiece. The current market price of the stock is Rs 598 apiece.

If you buy Prince Pipes & Fittings Ltd now, you can get 16% return. The company has a market capitalisation of Rs 6614 crore. The small cap stock has given 293% return in last 3-years.

According to the analyst, "We believe PRINCPIP has nearterm demand and margin tailwinds (due to inventory losses subsiding in Q4) as agriculture market (30-35% of company's revenues) is expected to witness a rebound led by a sharp correction (FY-TD 35%) in PVC prices. We maintain estimates and BUY rating on the stock with an unchanged Dec'23E target price of Rs 691.

3. Add Multi Commodity Exchange of India

The last trading price of the stock is Rs 1477 apiece. ICICI has given add rating to the stock with a target price of Rs 1669 apiece. The financial services stock has a market capitalisation of Rs 7535 crore.

The stock has given maximum 62% return in last 5-years and 19% return in last 3-years. The stock has soared 19% in last 3-months. The mid cap company operates in Financial Services sector.

According to the analyst, "Hence, we maintain our multiples but downgrade our rating from BUY to ADD with a revised target price of Rs1,669 (Rs1,795 earlier) based on 35x FY24 core EPS (unchanged) of Rs42.6 and cash per share of Rs179/ share. Continuation of problem in transfer of software platform pose downside risk."

4. Buy Jindal Steel & Power

The last trading price of the stock is Rs 598 apiece. ICICI Securities has assigned buy call to Jindal Steel & Power with a target price of Rs 750 apiece. If you buy Jindal Steel & Power, you will get 25% upside.

The company has a market capitalisation of Rs 61,052.27 crore. The stock has rallied 248% return in last 3-years and 172% return in last 5 years. The stock has surged 55% return in last 1-year and 43% return in last 3-months.

According to the analyst, "We value JSPL at an unchanged multiple of 6x FY24E EBITDA (1 deviation above 5-year trading average). Our revised target price works out to Rs750 (earlier: Rs605). We maintain BUY on the stock and recommend it as our top pick in the ferrous space."

5. Buy InterGlobe Aviation

The analyst has given buy rating to the stock with a target price of Rs 2360 apiece. The current market price of the stock is Rs 2039 apiece.

If you buy InterGlobe Aviation now, you will get 16% upside. The stock has given 69% return in last 5-years and 50% return in last 3-years. The large cap Airlines sector stock has given 14% return in last 3-months.

According to ICICI Securities, "Cost overrun on wet leases/lease extensions akin to H2FY23 is a risk, but one can expect compensation from OEMs. Deliveries too shot up for IndiGo in Q3FY23 (6/7 aircrafts delivered in Oct/Nov'22 compared to 6 in H1FY23) in line with the typical manufacturing trends of OEMs. Travel impact due to future Covid waves is a risk. Maintain BUY with the unchanged target price of Rs2,360 based on 25x FY24E EPS of Rs94.4."

 

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.