ICICI Direct Picks 3 Stocks To Buy For Quick Returns In 12 Months

Leading brokerage firm ICICI Direct has assigned buy rating to 3 stocks with potential return of up to 18% in 12 months period. These stocks are HDFC Life Insurance Company Ltd, CSB Bank Ltd, and Kotak Mahindra Bank. If you buy these stocks now, you can expect to get double digit return on these stocks. Check key takeaways below:

1. HDFC Life Insurance Company Ltd

ICICI Direct has assigned buy call to HDFC Life Insurance with a target price of Rs 635 apiece with a potential return of 18%. The analyst has given a time period of 12 months in which the stock will achieve the specified target price.

According to ICICI Direct, "HDFC Life's share price has given modest return of just over 6% in the past three years. Focus on diversified business growth, confidence on Exide acquisition provides comfort on fundamental strength. We retain our BUY rating on the stock."

Insurance under penetration coupled with focus on product mix to aid healthy business growth and VNB margin. However, integration of Exide Life and uncertainty on stake of parent acts as near-term deterrents. We continue to value HDFC Life at 2.9x FY24E EV with target price maintained at Rs 635.

The current market price of HDFC Life is Rs 541 apiece. It has a market capitalisation of Rs 1,16,416.99 crore. 

2. Kotak Mahindra Bank Ltd

ICICI Direct has assigned buy call to Kotak Mahindra Bank with a target price of Rs 2250 apiece and a potential return of up to 18% in 12 months period.

According to ICICI Direct, "KMB's share price has grown by 18% over the past three years. Pedalling growth along with diversified asset mix with focus on risk adjusted margins to aid earnings and keep asset quality steady. We maintain BUY rating on the stock."
We value standalone bank at ~3.75x FY24E ABV and subsidiaries at ~Rs 488 post holding company discount giving SOTP target of Rs 2250, added ICICI Direct.

The current market price of Kotak Mahindra is Rs 1895 apiece with 52-week high at Rs 2252 apiece and 52-week low at Rs 1630 apiece, respectively. The bank has a market capitalisation of 3,76,297.41 crore.

3. CSB Bank Ltd

ICICI Direct has assigned buy call to the banking stock with a target price of Rs 275 apiece and a potential return of up to 18%. According to ICICI Direct, "CSB Bank has given flattish returns in the past two years post the initial run-up. The management's focus on sustainable & quality loan growth with control on credit cost to drive profitability. We retain our BUY rating on the stock."

CSB bank is expected to deliver a credit growth higher than industry with RoA of 1.5%+. Thus, we value CSB Bank at ~1.4x FY24E ABV with a revised target price of Rs 275 vs. Rs 250 earlier, added ICICI Direct.

The current market price of CSB Bank is Rs 235 apiece with 52-week high at Rs 336 and 52-week low is Rs 178 apiece, respectively. The banking company has a market capitalisation of Rs 4070 crore.

 

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.