Motilal Oswal Sees 3 Large Cap Quality Stocks Soaring, Assigns Buy Call For Higher Returns

Motilal Oswal has selected 3 stocks to buy showing an upward potential. These stocks are Indian Oil Corporation Ltd, SBI Life Insurance Company Ltd, and Titan Company Ltd. If you buy these stocks now, you can get maximum 28% return. Check key takeaways below:

1. Buy Indian Oil Corporation Ltd

The last trading price of the large cap stock is Rs 77 apiece with an intraday decline of 1.22%. Motilal Oswal has recommended investors to buy Indian Oil Corporation Ltd with a target price of Rs 98 apiece.

If you buy IOCL now, you are set to receive 27% potential return. The stock's 52-week high is Rs 90 apiece and 52-week low is Rs 65 apiece, respectively. The company has a market capitalisation of Rs 1,08,874.75 crore.

According to the brokerage, "IOCL is set to commission various projects over the next two years, boosting growth. As per its earlier guidance, the ongoing projects are expected to be completed as follows: Panipat refinery (25mmtpa) by Sep'24, Gujarat refinery (18mmtpa) by Aug'23, and Baruni refinery (9mmtpa) by Apr'23. We expect a dividend payout of ~51% over FY23-24. We value the stock at 0.9x blended FY24-25E P/BV to arrive at our TP of INR98. We maintain our Buy rating.

2. Buy SBI Life Insurance Company Ltd

The last trading price of the stock is Rs 1254 apiece. The stock witnessed a decline of 1.31 on December 16, 2022.

Motilal Oswal has recommended investors to buy SBI Life Insurance Company with a target price of Rs 1600, implying an upside of 28% from its current market price.

The stock's 52-week high is Rs 1339 and 52-week low is Rs 1003 apiece. The company has a market capitalisation of Rs 1,25,563.62 crore.

The stock has soared 82% in last 5-years, 29% in last 3-years, and 8% in last 1-year.

According to Motilal Oswal, "SBILIFE is among our preferred picks in the life insurance space and we reiterate our BUY rating on the stock with a TP of INR1,600 (2.5x Sep'24E EV)."  SBILIFE has delivered a robust NBP growth of 26% in FY23YTD, outperforming the leading private players. We estimate SBILIFE to deliver an APE CAGR of 26% over FY22-24, the highest in our LI coverage universe, according to the analyst."

3. Buy Titan Company Ltd

The multibagger stock's last trading price is Rs 2483 apiece with an intraday decline of 1.59%. Motilal Oswal has suggested investors to buy Titan Company Ltd with a target price of Rs 2910 apiece, showing an upside of 17%.

The stock's 52-week high is quoted at Rs 2790 apiece and 52-week low is quoted at Rs 1827 apiece, respectively. The company has a market capitalisation of Rs 2,20,455.06 crore.

In last 5-years, Titan has given 198% return and in last 3-years, the return is 113%.

According to Motilal Oswal, "Aside of our expectation of possibly slower growth in 3QFY23 on a very high base in the Jewelry business, there are no concerns beyond that, especially with the geopolitical situation stabilizing. Expensive valuations in the near term will be burnished by its rapid pace of growth. We maintain our Buy rating with a TP of INR2,910 (60x Sep'24 EPS)."

 

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. 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.