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ICICI Direct Picks 5 Quality Stocks To Buy, Hold For 46% Return In Short Term
ICICI Direct Picks 5 Quality Stocks To Buy, Hold For 46% Return In Short Term
Leading brokerage ICICI Direct has picked 4 stocks to buy for robust return in short term. These stocks are Bharat Electronics, NTPC, Dwarikesh Sugar Industries, Varun Beverages, and Supreme Industries.
| Company | Potential Return |
|---|---|
| NTPC | 8% |
| Bharat Electronics | 26% |
| Dwarikesh Sugar Industries | 46% |
| Varun Beverages | 8% |
| Supreme Industries | 13% |
Check key takeaways below:
1. NTPC Ltd
The current market price of NTPC Ltd is Rs 180 apiece with 52-week high at Rs 182 apiece and 52-week low at Rs 118 apiece, respectively. The stock has given a maximum return of 48% in 3-years.
If you buy the stock now, you can get a potential return of 8% in 12-15 months.
According to ICICI Direct, "With strong focus on alternate energy spectrum, we believe NTPC may be able to break the underperformance of the last decade and witness a rerating coupled with monetisation of the renewable energy arm in FY23E. We maintain our BUY rating on the stock. We value NTPC at Rs 195 i.e. 1.3x FY24E book value."
NTPC has 2000 MW commercialised renewable capacity while ~5000 MW is under construction. Capacity addition to be around 13 GW in FY24-25. The company expects to spend ~40% of total capex planned for FY23, FY24 on renewable projects, added ICICI Direct.
2. Bharat Electronics
The current market price of the stock is Rs 107 apiece with 52-week high at Rs 115 and 52-week low at Rs 62 apiece, respectively. The company has a market capitalisation of Rs 78,397.38 crore.
The stock has given maximum return in 3-years at 167%. The large cap company operates in Defence sector. If you buy the stock now with a target price of Rs 135, you can get likely return of 26% in 12-18 months.
According to ICICI Direct, "Overall, expected double digit revenue, order inflow growth, sustained margins and strong order book to ensure better performance. We value BEL at Rs 135 i.e. 30x P/E on FY24E EPS."
3. Supreme Industries
The current market price of Supreme Industries is Rs 2308 apiece with 52-week high at Rs 2500 and 52-week low at Rs 1668 apiece, respectively.
The company has a market capitalisation of Rs 29,246 crore. ICICI Direct has suggested investors to buy the stock with a target price of Rs 2600 apiece and potential return of 13%.
According to ICICI Direct, "We maintain our BUY rating on the stock. We value the stock at 32x P/E FY24E EPS and revise our target price to Rs 2600."
4. Dwarikesh Sugar Industries
The current market price of Dwarikesh Sugar Industries is Rs 92 apiece with 52-week high at Rs 148 apiece and 52-week low at Rs 63 apiece, respectively.
The company has a market capitalisation of Rs 1733 crore. ICICI Direct has recommended investors to buy the stock with a target price of Rs 135 apiece with a potential return of 46%.
According to ICICI Direct, "We expect 44.6% CAGR in distillery sales, which would drive earnings growth with CAGR of 27.7% during FY22-24E for the company. We maintain our BUY rating on the stock. We value the stock at Rs 135, valuing the business at 10x FY24 PE."
5. Varun Beverages Ltd
The current market price of Varun Beverages is Rs 1146 apiece with 52-week high at Rs 1194 apiece and 52-week low at Rs 545 apiece, respectively.
The large cap company has a market capitalisation of Rs 74,441.63 crore. The stock has given highest return in last 5 years at 670%. ICICI Direct has suggested investors to hold the stock with a target price of Rs 1235 with potential return of 8%.
According to the brokerage, "Varun Beverage's share price has given 7.3x return (from Rs 150 in October 2017 to Rs 1107 in October 2022). We revise our CY22 and CY23 revenue and earnings numbers upward after robust volume growth in 9MCY22. Given most positives are already factored in valuation, we change our rating on the stock from BUY to HOLD. We value the stock at Rs 1235, valuing the business at 40x CY24 PE."
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.
