ICICI Securities Recommends Hold, Buy Call To 2 Mid Cap Stocks For Higher Return

ICICI Securities has assigned buy and hold call to 2 stocks for attractive return. These stocks are Mahanagar Gas (buy) and CEAT (hold). Mahanagar Gas is a mid-cap PSU stock. The stocks are showing a return potential of 14%. Check details below:

Buy Mahanagar Gas Ltd: ICICI Securities has assigned buy call to leading mid cap stock operating in Gas & Petroleum sector, Mahanagar Gas Ltd with a target price of Rs 1125 apiece. Current market price of the stock is Rs 986.35 apiece on BSE with an intraday gain of 8.80%. If you buy Mahanagar Gas Ltd now, you can get potential return of 14%. Its 52-week high is Rs 990.00 apiece and 52-week low is Rs 666.35 apiece, respectively. Its market capitalisation is Rs 9,742.95 crore. The stock gave over 9% return in last 3-months and 37% return in last 1-year.

According to ICICI Securities, "Mahanagar Gas (MGL) has announced its first inorganic acquisition in the CGD space, Unison Enviro Pvt Ltd (UEPL), from the latter's erstwhile promoters Ashoka Buildcon and North Haven India Infra (a Morgan Stanley affiliate). At CMP, the stock trades at 8.9x FY25E EPS and 3.9x EV/EBITDA, which we believe offers attractive risk reward. We remain bullish on MGL for next 12-18 months."

Hold CEAT: ICICI Securities has assigned hold rating to CEAT stock with target price of Rs 1414 apiece. Current market price of CEAT is Rs 1434.80 apiece. The stock's 52-week high is Rs 1,981.45 apiece and 52-week low is Rs 890.00 apiece, respectively. Its market capitalisation is Rs 5,803.78 crore.

The Tyres sector stock rallied 35% in last 1-year and 46% in last 3-years. It fell 23% in last 3-months.

According to ICICI Securities, "We upgrade the stock to HOLD from Reduce with DCF-based TP of Rs1,414 (earlier: Rs1,377), implying ~14x FY25E earnings, with increase in TP being driven by a quarter's rollover in our DCF."