5 Stocks To Buy As Recommended By ICICI Securities In December

ICICI Securities in December recommended "BUY" these 5 quality stocks from various sectors. These stocks delivered healthy returns over the years to shareholders. Here is the list of 5 stocks that get a "Buy" rating for healthy returns up to 41% for their current level:

Stocks	Target Price	Potential Upside (in %)
Indraprastha Gas	Rs 540	35
GAIL	Rs 127	39
Jubilant FoodWorks	Rs 720	41
Havells India	Rs 1,550	39
Jindal Stainless	Rs 270	30

1. Indraprastha Gas Limited

The brokerage suggests buying the stock of Indraprastha Gas with a target price of Rs 540/share. If you buy the stock at the current market price, it could give you returns of up to 35%. 

The current market price (CMP) of the stock is Rs 401..45/share on NSE. The stock has fallen 6.53% in the past 1 week. It has given 19.63% negative returns in the past 1 year and 7.37% negative returns in the past 3 years. However, in the past 5 years, it gave 21.97% positive returns.

 
ICICI Securities said, "In our view, the 10% dip in the stock price over the past one year ignores the long-term prospects in favour of the near-term stress on margins. We have raised volume estimates for FY23E/FY24E by 3.9/1.4%, respectively, to factor stronger actuals and higher guidance in H1FY23. FY23E/FY24E EPS has been raised by 4.2/1.4%, respectively. We see current valuations of 19.5x FY24E P/E and 12.1x EV/EBITDA offering excellent risk reward. Our DCF-based valuation (FY23E/FY24E average) of Rs540sh implies a material 23.6% upside from CMP. Reiterate BUY." 

2. GAIL (India) Limited

The brokerage assigns buy on GAIL (India) Limited with a target price of Rs 127/share. According to the brokerage's estimated target price, the stock could surge up to 39% in 1 year. 

The current market price of the stock on NSE is Rs 91.55/share. In the past 1 week, its share price fell nearly 5.37%. Whereas in the past 1 year, it gained 3.37% and in the past 3 years, it gave a maximum 13.87% positive returns. However, in the past 5 years, its share price has fallen, giving a 27.21% negative return.
 
 The brokerage said, "We revise FY23/24E EPS down by 10/9% respectively, to factor i) lower trading margins, ii) lower petrochemical volumes and iii) lower transmission volumes. This is offset partially by 5% higher transmission tariffs assumed for FY24e onwards, albeit there is an upside risk to this estimate. Valuations of

3. Jubilant FoodWorks Limited

The brokerage rates Jubilant FoodWorks a "buy" with a target price of Rs 720 per share. The brokerage estimates that with the specified target price, it could give a potential gain of 41%.

On the NSE, the stock's current market price (CMP) is Rs 511.25 per share. In the last week, the stock has moved down, giving 1.72% negative return. It gave negative returns of 26.78% over the last 1 year. It gave 62.05% positive returns over the last 3 years. It delivered multibagger returns of 189.69% over the past five years.

 
The brokerage said, "Maintain BUY with DCF-based target price of Rs720." The brokerage also highlighted the Key downside risks to the buy call as Raw material costs turning inflationary and increase in competitive intensity.

4. Havells India Limited

ICICI Securities placed a buy call on Havels for a healthy gain of up to 39% from its current level with an estimated target price of Rs 1,550/share. The Current Market Price (CMP) of Havels on NSE is Rs 1,100.80/share. The stock has given 4.59% negative returns in the past 1 week. Over the past 1 year, it gave 19.81% negative returns. It gave 69.39% positive returns in the 3 last years. It has given maximum returns of 100.13% returns in the last 5 years.

 
The brokerage said, "We model Havells to report a PAT CAGR of 21.4% and RoE to be upward of 17%, over FY22-FY24E. We remain positive on the company's business model due to strong moats and growth opportunities. Maintain BUY with a DCF-based target price of Rs 1,550 (implied P/E 55x FY24E)."
 

5. Jindal Stainless Limited

The stock was given a buy rating by the brokerage with a target price of Rs 270 per share. With the stated target price, it anticipates a gain in the share price of up to 30%.

On NSE, the stock last traded at Rs 207.55/share. The stock has fallen 3.67% in the past 1 week. In the past 1 year, it gave 14.48% positive returns. In the last 3 years, it gave 438.79% multibagger returns and in the last 5 years, it has given 92.18%, respectively.

The brokerage said, "Volume-led growth in sight: The removal of export duty is likely to redeem JSL's volume and margins. Besides, the commissioning of 1mntepa brownfield capacity may result in volume CAGR of 20% (pro forma basis). We have raised our volume estimates to 1.4mnte (earlier 1.1mnte) owing to improved prospects in both domestic and export markets. Our revised TP works out to Rs270 on 5.5x FY24E EBITDA." 

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 consult with certified experts before making any investment decision.