ICICI Direct Picks 5 Stocks, Including 1 Maharatna, 2 Navratnas, With Hold, Buy Call

ICICI Direct has recommended investors to buy 5 stocks that are showing potential to rise in the next 12 months. These stocks are Container Corporation of India (CONCOR), Sterlite Technologies (STETEC), Bajaj Finance (BAJFI), Bharat Electronics (BHAELE), and NTPC. If you buy these stocks now, you will likely receive maximum return of 48% in coming 12 months. 3 of the stocks have declared interim dividends as well. Check details below:

1. Buy Bharat Electronics (BHAELE)

ICICI Direct has recommended investors to buy the Navratna stock with a target price of Rs 130 apiece. Current market price of Bharat Electronics is Rs 88.40 apiece after an intraday decline of 6.26%.

The stock's 52-week high is Rs 115.00 apiece and 52-week low is Rs 62.24 apiece, respectively. The company has a market capitalisation of Rs 64,581.90 crore. If you buy Bharat Electronics now, you will get potential upside of 48%.

It has also declared an interim dividend of Rs.0.60/- per equity share of Rs.1/- each fully paid-up (60%) for the financial year 2022-23 on January 28, 2023. The stock gave a return of 27% in last 1-year, declined 16% in last 3-months, and 12% in last 1-month.

According to ICICI Direct, "Overall, expected double digit revenue, order inflow growth, sustained margins and strong order book to ensure better performance. We remain long term positive and retain our BUY rating on the stock."

2. Buy NTPC Ltd

ICICI Direct has assigned buy call to NTPC Ltd with a target price of Rs 207 apiece. Current market price of NTPC Ltd is Rs 171.50 apiece with an intraday surge of 3%. If you buy NTPC Ltd now, you can fetch 21% return. The stock's 52-week high is Rs 182.80 apiece and 52-week low is Rs 123.70 apiece, respectively.

The company has a market capitalisation of Rs 1,66,152.37 crore. The company also declared an interim dividend at the rate of 42.50% (Rs.4.25 per share) on the face value of paid-up equity shares of Rs. 10/- each for the financial year 2022-23.

NTPC stock gave a return of 21% in last 1-year, 50% in last 3-years, and 20% in last 5-years. It declined a little over 1% in last 3-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 and strong capacity addition in excess of 3000 MW on the renewable side. We maintain our BUY rating on the stock."

3. Buy Bajaj Finance (BAJFI)

The analyst has recommended investors to buy Bajaj Finance with a target price of Rs 7250 apiece. The current market price of the stock is Rs 6052.60 apiece with an intraday gain of 5.15%. If you buy Bajaj Finance now, you will potentially get a return of 20%.

The stock's 52-week high is Rs 7,777.00 apiece and 52-week low is Rs 5,235.60 apiece, respectively. The company has a market capitalisation of Rs 3,66,297.70 crore. The stock declined 13% in last 3-months, 12% in last 1-year, and gave a return if 38% in last 3-years. In last 5-years, it surged 259%.

According to ICICI Direct, "We maintain BUY rating on the stock, offering compounding returns. Target Price and Valuation: Omnipresence strategy and organic momentum building up offers comfort on growth sustainability. We revise target price to Rs 7250 from Rs 8650 keeping multiple at ~5.7x FY25E ABV."

4. Buy Sterlite Technologies (STETEC)

ICICI Direct has suggested investors to buy Sterlite Technologies with a target price of Rs 220 apiece. Current market price of Sterlite Technologies is Rs 183.20 apiece with intraday surge of 4.48%.

If you buy Sterlite Technologies now, you will potentially receive a return of 20%. The stock's 52-week high is Rs 242.90 apiece and 52-week high is Rs 128.60 apiece, respectively. The company has a market capitalisation of Rs 7299.07 crore.

The stock gave 12% return in last 3-months, declined 11% in last 1-year, and gave a return of 46% again in last 3-years.

According to ICICI Direct, "STL is uniquely positioned to benefit from 5G/ FTTH deployment cycle both domestically and globally. We believe that with focus on ramping down/exiting loss making segment and improving services segment profitability, STL will likely see a healthy earnings momentum ahead. Thus, we maintain BUY rating."

5. Hold Container Corporation of India (CONCOR)

ICICI Direct has recommended investors to hold Container Corporation of India with a target price of Rs 700 apiece. The current market price of the stock is Rs 631.05 apiece with intraday dip of 1.41%.

The company has a market capitalisation of Rs 38,449.52 crore. The navratna stock declined over 19% in last 3-months, and gave a return of 10% in last 3-years. In last 5-years, the stock soared 14%.

It also announced a dividend of Rs 4.00/share on Jan 23, 2023 with record date of 6 Feb, 2023.

According to ICICI Direct, "We change our stance from BUY to HOLD recommendation. We value the stock at Rs 700 i.e. 32x P/E on FY24E EPS."

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.