ICICI Direct Selects 5 Stocks To Buy With Return Potential Up To 32% In Short Term

Leading brokerage ICICI Direct has selected five stocks for investors that is showing an attractive return potential for investors. These stocks are Container Corporation of India Ltd, Axis Bank Ltd, Laurus Labs Ltd, Lemon Tree Hotels Ltd, and City Union Bank Ltd. If you buy the stock now, you can expect to receive return up to 32% in short term.

Check key takeaways below:

1. Container Corporation of India Ltd

The brokerage house has assigned buy rating to Container Corporation of India Ltd with a target price of Rs 890 apiece and a return potential of 28%. The last trading price of the stock is Rs 690 apiece. The company has a market capitalisation of Rs 42,388.61 crore.

According to ICICI Direct, ""Driven by higher volume growth and incremental revenues from new initiatives, we expect the company to register a revenue, PAT CAGR of 22%, and 46%, respectively, in FY22-24E. We expect it to be a major beneficiary of the modal shift of freight volume share from the road in favour of rail as envisaged in the new National Logistics Policy."

The stock has given a 5-years return of 28% and 3-years return of 20%. The large cap company came into existence in 1988 and operates in Logistics sector.

2. Axis Bank Ltd

ICICI Direct has assigned buy rating to Axis Bank Ltd with a target price of Rs 970 apiece and a return potential of 21.25%. The last trading price of Axis Bank is Rs 800 apiece. The company has a market capitalisation of Rs 2,45,897.58 crore.

The stock has given a return of 51% in last 5 years and 17% in last 3 years. The banking company was incorporated in 1993.

According to ICICI Direct, "We believe Axis Bank will deliver an RoA, RoE of 1.5%, 15%, respectively, over FY22-24E." The bank is expect to achieve robust business growth, improving operational efficiency and synergy benefits from the Citi acquisition, added the brokerage.

 

3. Laurus Labs Ltd

ICICI Direct has given buy call to Laurus Lab with a target price of Rs 675 apiece with a return potential of 31%. The last trading price of Laurus Labs is Rs 515 apiece with a market capitalisation of Rs 27,725.05 crore.

According to ICICI Direct, "Formulations are expected to do well on account of product launches in anti-diabetic (FY23) & CV portfolios (FY24) in the US and Europe."

The stock has given 5-years return at 374% and 3-years return at 706%. The mid-cap company was incorporated in 2005 and operates in Pharmaceuticals sector.

4. Lemon Tree Hotels Ltd

The brokerage house has fixed buy rating to Lemon Tree Hotels with a target price of Rs 110 apiece. The last trading price of Lemon Tree Hotels is Rs 83 apiece with a market capitalisation of Rs 6,595 crore. The stock is showing a return potential of 32%.

According to ICICI Direct, "we expect the company's operating margin to scale up to 50% over the next one year." The stock has given a return of 16% in 5 years and 51% in last 1 year.

In last three months only, the return is 30%. The mid cap company was formed in 1992 and operates in Tourism & Hospitality sector.

5. City Union Bank Ltd

ICICI Direct has given buy call to City Union Bank with a target price of Rs 215 apiece. The stock is showing a return potential of 16% as per ICICI Direct's call.

The last trading price of City Union Bank is Rs 184 apiece with a market capitalisation of Rs 13,612 crore. The stock has given a return of 27% in last 5 years and in last 3 months, the return is 22%.

It has fallen 15% in last 3 years. According to ICICI Direct, "We believe City Union Bank will deliver RoA, and RoE of 1.5%, and 13%, respectively, in FY22-24E."

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.