Motilal Oswal Picks 5 Best Stocks Carrying Potential To Offer Higher Returns, Buy

Leading brokerage firm Motilal Oswal has suggested investors to buy 5 stocks and that can surge up to 40%. These stocks are TCS, Jindal Steel & Power, Indian Hotels Company Ltd, ICICI Bank, and Star Health and Allied Insurance Company Ltd. Check details related to the analyst's stocks recommendations:

1. Buy Star Health and Allied Insurance Company Ltd

Motilal Oswal has recommended investors to buy Star Health with a target price of Rs 700 apiece. The last trading price of the stock is Rs 500.90 apiece. If you buy Star Health and Allied Insurance Company shares now at the last trading price, you will get a likely return of 40%.

The stock's 52-week high is Rs 798.00 apiece and 52-week low is Rs 451.10 apiece, respectively. The company has a market capitalisation of Rs 29,136.22 crore.

The stock declined 29% in last 6-months and 36% in last 1-year. The large cap company operates in Financial Services sector.

According to the analyst, "Retain BUY with a revised TP of INR700 (based on 35x Sep'24E EPS). Uncertainties around regulations and increasing competition have resulted in a cut in the valuation multiple."

2. Buy ICICI Bank

Motilal Oswal has suggested investors to buy ICICI Bank shares with a target price of Rs 1150 apiece. Last trading price of the stock is Rs 846.65 apiece with intraday gain of 1.80%. If you buy ICICI Bank stock now, you will receive potential return of 35%.

The stock's 52-week high is Rs 958.00 apiece and 52-week low is Rs 642.00 apiece, respectively. The company has a market capitalisation of Rs 5,90,816.14 crore. The stock surged over 2% in last 6-months and over 4% in last 1-year. In last 3-years, the stock rallied 68%.

According to Motilal Oswal, "We estimate ICICBC to deliver RoA/RoE of 2.2%/17.0% in FY25. Reiterate Buy with our SoTP-based TP of INR1,150 (2.8x Sep'24E ABV)."

3. Buy TCS

The last trading price of TCS 3407.65 apiece with intraday rally of 1.50%. Motilal Oswal has assigned buy rating to TCS stock with a target price of Rs 3950 apiece. If you buy TCS now, you will likely to get a return of 16%.

The stock's 52-week high is Rs 3,882.95 apiece and 52-week low is Rs 2,926.00 apiece. The company has a market capitalisation of Rs 12,46,876.64 crore.
The large cap stock soared over 4% in last 3-months, 3% in last 6-months, and declined 10% in last 1-year. It gave a return of 57% in last 3-years.

According to Motilal Oswal, "We maintain our positive stance on TCS. Our TP of INR3,950 implies 29x FY24E/25xFY25 EPS, with a 18% upside potential. We reiterate our Buy rating."

4. Buy Jindal Steel & Power

The last trading price of Jindal Steel & Power is Rs 608.30 apiece. The stock gained a little over 4% and hit its new 52-week high in trade today. Motilal Oswal has suggested investors to buy Jindal Steel & Power Ltd with a target price of Rs 700 apiece with return up to 15%.

The mid cap company has a market capitalisation of Rs 62,051.96 crore. The stock rallied 55% in last 6-months, 47% in last 1-year, and 263% in last 3-years.

According to Motilal Oswal, "We have trimmed our FY24E EBITDA by 4% to INR131b and expect JSP to clock EBITDA/t of INR15,128. The price of coking coal has started to move up, which could impact margins during 1HFY24."

5. Buy Indian Hotels Company Ltd

The last trading price of the stock is Rs 326.60 apiece with an intraday gain of 8.67%. Motilal Oswal has suggested investors to invest in the stock with target price of Rs 410 apiece.

If you buy Indian Hotels Company Ltd now, you will get potential return of 26%. The stock's 52-week high is Rs 348.70 apiece and 52-week low is Rs 180.75 apiece, respectively. The company has a market capitalisation of Rs 46,390.28 crore.

The stock rallied 20% in last 6-months and 46% in last 1-year. In last 3-years, the mid cap company gave a return of 135%.

According to Motilal Oswal, "Factoring in the 3QFY23 performance, we raise our FY23/FY24/FY25 EBITDA estimates by 7%/6%/5%, respectively, aided by robust demand due to the wedding season, increase in inbound travel, India assuming the G20 presidency (meetings across India) and major events in the coming years. Maintain BUY with an SoTP-based TP of INR410."

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal. 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.