ICICI Securities Picks 5 Stocks Showing Upside Potential: Assigns Buy, Hold Call

ICICI Securities has picked 5 stocks for investment. The brokerage has assigned buy and hold call to these stocks for higher returns. These stocks are Hatsun Agro Products, Balkrishna Industries, IndiaMART InterMESH, PVR, and ICICI Prudential Life Insurance Company. The stocks have the potential to fetch returns up to 37%. Check key details below:

1. Buy ICICI Prudential Life Insurance Company

The brokerage has assigned buy rating to ICICI Prudential Life Insurance with a target price of Rs 643 apiece. The last trading price of the stock is Rs 470.40 apiece. If you buy ICICI Prudential Life Insurance Company Ltd stock now, you will potentially receive 37% return soon.

The stock's 52-week high is Rs 608.65 apiece and 52-week low is Rs 430.00 apiece, respectively. The company has a market capitalisation of Rs 67,669.95 crore. The large cap Financial Services sector declined 9% in last 1-month, and 18% in last 1-year.

According to ICICI Securities, "ICICI Prudential Life Insurance (IPRU) has reported good performance in 9MFY23 in terms of both margin and volume growth (ex-parent channel). Maintain BUY with target price of Rs 643, or 2.4x FY24E EV (based on average trading history).

2. Buy IndiaMART InterMESH

ICICI Securities has recommended investors to buy IndiaMART InterMESH with a target price of Rs 6000 apiece. Last trading price of the stock is Rs 4547.70 apiece with 52-week high at Rs 6450.00 apiece and 52-week low at Rs 3676.05 apiece, respectively.

The company has a market capitalisation of Rs 13,922 crore. If you buy IndiaMART InterMESH at current market price, you will likely receive 32% return. The mid cap services sector stock has given 3% return in last 3-months and declined over 28% in last 1-year.

According to ICICI Securities, "Stock has already corrected ~29% over the last year and, at current valuations of ~26x 1-year forward EV/EBITDA, we think it is a compelling BUY, given its likely growth prospects. We value the stock at ~36x 1-year forward EV/EBITDA."

3. Buy PVR

The brokerage has assigned buy call to PVR stock with a target price of Rs 2100 apiece. Last trading price of the stock is Rs 1610.75 apiece with 52-week high at Rs 2211.55 apiece and 52-week low at Rs 1478.20 apiece, respectively.

The company has a market capitalisation of Rs 9,865.86 crore. If you buy PVR Ltd now, you will likely get 30% upside. The mid cap Media & Entertainment stock has soared over 5% in last 3-months, and 23% in last 1-year.

According to the analyst, "We are now penning gradual recovery. Our EPS estimates remain unchanged. Accordingly, our target price is Rs2,100 with unchanged multiple of 16x FY24E EBITDA. Maintain BUY. Key risks: Lower-than-expected occupancy and higher-than-expected cost."

 

4. Buy Balkrishna Industries

ICICI Securities has assigned buy call to Balkrishna Industries with a target price of Rs 2549 apiece. Last trading price of the stock is Rs 2223.30 apiece on BSE with 52-week high at Rs 2509.40 apiece and 52-week low at Rs 1681.95 apiece, respectively.

If you buy Balkrishna Industries shares now, you will potential receive 15% return. The company has a market capitalisation of Rs 42,980 crore.

According to the brokerage, "We keep our FY23/24 volume/earnings estimates unchanged and maintain BUY with DCF-based TP of Rs2,549 (Rs2,479 earlier), implying 22xFY25E EPS, with increase in valuation being purely led by earnings roll-over by a quarter." The large cap Tyres sector stock has given 14% return in last 3-months and declined 10% in last 1-year."

5. Hold Hatsun Agro Products

The analyst has assigned hold rating to Hatsun Agro Products with a target price of Rs 931 apiece. Last trading price of the stock is Rs 895.05 apiece.

The stock's 52-week high is Rs 1214.36 apiece and 52-week low is Rs 822.27 apiece, respectively. The company has a market capitalisation of Rs 19,294 crore. The stock has declined 10% in last 3-months and 24% in last 1-year. It has given a return of 98% in last 3-years.

According to ICICI Securities, "We remain structurally positive on Hatsun due to its competitive advantages and growth opportunity in South India but need more comfort on valuations to be constructive. We cut earnings estimates to factor in 9MFY23. Maintain HOLD rating with a revised DCF-based TP of Rs931 (41x FY25E; prior TP: Rs975)."

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 check with certified experts before taking any investment decision.