ICICI Securities Picks Defence Sector Stocks With Buy, Add, Sell Rating, Sees Strong Upside In 2023

Brokerage firm ICICI Securities in its December 25, 2022, report on Defence Sector picked 4 stocks from the sector with Buy, Add, and Sell ratings.

In the brokerage stated, As per media reports (quoting the Defence Ministry) (Link), the Defence Acquisition Council (DAC) has accorded approval for Acceptance of Necessity (AoN) for 24 Capital Acquisition Proposals worth Rs843bn spread across Air Force, Navy, Army and Coast Guard. At this stage, the details pertaining to category-wise break up, timelines and contract details are not available; however, we believe given the recent skirmish on the North-Eastern border, the execution is likely to be expeditious.

Below are the key highlights of the stocks picked by the brokerage along with potential upside in the report:

Buy - Bharat Electronics Limited

The brokerage has placed a buy call on Bharat Electric Limited (BEL) for a target price of Rs 125 apiece. It sees a potential upside in the stock up to 26% from its current level, considering the given target price. This is a Large cap PSU Navratna stock having a market cap of Rs 72,549.55 crore.

On NSE, the stock last traded at Rs 99.25 apiece, 02.80% up from its previous close. It fell 1.19% in the past 1 week, and 7.37% in the past 1 month, respectively. It gave 45.92% positive returns in 1 year. Whereas, in 3 years, it gave 201.21% multibagger returns. In 5 years, it gave 59.61% positive returns. 

Buy - Solar Industries India Limited

The brokerage with a "buy" call has estimated a target price of Rs 4,760 apiece for the stock. It claims a potential upside of up to 16% from its current level. With a market cap of Rs 32,218.56 crore, it is a large-cap stock. The company operates in the industrial explosive industry. 

The stock is currently trading at Rs 4,113 apiece on NSE, 1.90% up from its previous close. It has given 2.47% positive returns in 1 week, and 9.4% returns in the past 1 month, respectively. In the past 1 year, it has given 73.99% positive returns. In 3 and 5 years, the stock has given the highest returns. In 3 years it gave 289.38% and in 5 years it gave 246.01% multibagger returns. 

Add - Bharat Dynamics Limited

The brokerage gave an "Add" rating to the stock with a target price of Rs 1,100 apiece. According to the given target price, the stock could jump 22% from its current level. Bharat Dynamics is another PSU Stock on the list. It is a midcap Miniratna category PSU stock having a market cap of Rs 16,641.94 crore.

The stock last traded at Rs 908 apiece on NSE, up 10.72% as compared to its previous close. It made its debut on the exchange on 23 March 2018 and since then it has given 132.94% multibagger returns. It fell 2.08% in 1 week and 5.21% in 1 month, respectively. In a year, it gave 6.77% positive returns. In 3 years, it gave a 137.98% multibagger return, whereas, in 5 years, it gave a 200.21% multibagger return.

SELL - Garden Reach Shipbuilders & Engineers Limited (GRSE)

ICICI Securities has placed a "Sell" call on GRSE with a target price of 390 apiece. It is also a PSU Miniratna stock. It is a small-cap stock that operates in Shipping and allied industries. It has a market capitalisation of Rs 5,208.11 crore. 

Today, the stock surged 13.89%, ending at Rs 454.65 apiece on the NSE. The stock in 1 month has fallen 9.59% and in 1 month it has fallen 7.38%. In the past 1 year, it has given 47.37% positive returns. It has given 112.9% positive returns in 3 years and 125.41% multibagger returns in 5 years, respectively.

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 consult with certified experts before making any investment decision.