ICICI Securities Recommends "Buy" On Mid cap & Large Cap Tata Group Stocks For 24-26% Gains

ICICI Securities in its recent report on two Tata Group stocks namely Tata Consumer Product Limited and Indian Hotels Company Limited assigned "Buy" on the stock of the companies. The brokerage has suggested buy on the stock with an attractive target price. Below are the details:

Tata Consumer Product Limited (TCPL)

The brokerage has placed a "Buy" on the stock of Tata Consumer Product Limited with a target price of Rs 900 apiece. With the given target price, it could surge 24% from the current level. It is a large-cap FMCG Stock.

The stock on Friday last traded at Rs 726.60 apiece on NSE, fell 1.43% as compared to its previous close of Rs 737.15 apiece. The stock recorded its 52 week high on 14 September 2022 at Rs 861.15 apiece and 52 week low on 7 March 2022 at Rs 650 apiece, respectively.

The stock over the past 1 year has continuously declined. It declined 1.18% in 1 week, 5.29% in 1 month, and 4.74% in 3 months, respectively. In 1 year it declined by 1.56%. However, in 3 years it gained 91.79%, and in 5 years it gave the highest 164.36% return.

According to the brokerage, "We model TCPL to report revenue and PAT CAGR of 11.6% and 16.2%, respectively over FY22-25E. We maintain BUY and value the stock on SoTP basis with a target price of Rs900 (Earlier TP: Rs925). Key risk is execution - slower-than-expected ramp up of distribution and steep competition."

Indian Hotels Company Limited (IHCL)

ICICI Securities has assigned a "Buy" on the stock of Indian Hotels Company Limited with a target price of 399 apiece implying a potential upside of up to 26% from its current level. It is Midcap Hotel sector stock.

The stock on Friday last traded at Rs 318.25 apiece on NSE. The stock recorded its 52 week high on 11 November 2022 at Rs 349 apiece and 52 week low on 7 March 2022 at Rs 180 apiece, respectively.

It gained 11.1% in 1 week, however, it declined 6.38% in 3 months. In 1 year it gained 45.42%. In 3 years it gained 125.95%. It gave the highest 146.71% return in the past 5 years.

The brokerage said, "We upgrade our rating to BUY from ADD with a revised SoTP-based target price of Rs399/share (earlier Rs366) driven by earnings upgrades and roll forward to Mar'25 EV/EBITDA (earlier Dec'24 EV/EBITDA) at an EV/EBITDA multiple of 22x considering strong ARR trajectory. Key risks are fresh Covid waves and discretionary consumption slowdown."

Disclaimer

The stocks have been picked from the brokerage reports 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.