Motilal Oswal Upbeat On 4 Stocks: Assigns Buy Call For Attractive Return

1. Buy IndusInd Bank

Motilal Oswal has assigned buy call to private sector bank, IndusInd Bank with a target price of Rs 1550 apiece. The current market price of the bank is Rs 1193.00 apiece with an intraday decline of 2.41% on BSE at 1:50 pm on January 19, 2023.

If you buy IndusInd Bank at this price, you will likely receive 30% return. The stock's 52-week high is quoted at Rs 1275.25 apiece and 52-week low is quoted at Rs 763.75 apiece, respectively. The banking company has a market capitalisation of Rs 92,518.65 crore.

The stock declined 2% in last 3-months, rallied 33% in last 1-year, and fell 12% in last 3-months.

According to the analyst, "We estimate PAT to report 37% CAGR over FY22-25, leading to an 18% RoE in FY24. We reiterate our BUY rating with a TP of INR1,550 (premised on 1.8x Sep'24E ABV)."

 

2. Buy Varun Beverages

The brokerage firm has given buy rating to Varun Beverages with a target price of Rs 1,550 apiece. The current market price of the stock is Rs 1228.25 apiece on BSE with an intraday gain of 0.94%.

If you buy Varun Beverages now, you will receive potential 26% return. The stock's 52-week high is quoted at Rs 1432.05 apiece and 52-week low is quoted at Rs 557.51 apiece, respectively. It has a market capitalisation of Rs 79780.93 crore.

The large cap FMCG stock declined 13% in last 1-month, rallied 21% in last 3-months, and 95% in last 1-year. In last 3-years, it has surged 267%.

According to Motilal Oswal, "The stock price has corrected ~15% from its recent peak of INR1,432 and is currently trading at ~42x/33x CY23E/CY24E P/E which provides reasonable valuation comfort with strong revenue/EBITDA/PAT CAGR expectation of 16%/18%/27% over CY22E-24E, respectively. We value the stock at 42x CY24E EPS to arrive at our TP of INR1,550. Maintain BUY."

3. Buy ICICI Prudential Life Insurance

Motilal Oswal has assigned buy call to ICICI Prudential Life Insurance with a target price of Rs 570 apiece. Current market price of the stock is Rs 483.70 apiece with an intraday fall of 0.71%. If you buy ICICI Prudential Life Insurance Company Ltd, you will likely receive 18% return. The stock's 52-week high is Rs 608.65 apiece and 52-week low is Rs 430.00 apiece, respectively.

It has a market capitalisation of Rs 69,583.24 crore. The large cap stock has given return of 4% in last 1-week and 7% in last 1-month. It has declined 15% in last 1-year.

According to Motilal Oswal, "We estimate IPRU to deliver an 18% CAGR in VNB over FY22-25. This will be fueled by a combination of premium growth and slight improvement in margins, thereby enabling an operating RoEV of ~16% over FY23-25E. Retain BUY with a TP of INR570 (based on 1.8x Sep'24E EV)."

4. Buy Metro Brands

The analyst has assigned buy call to Metro Brands with a target price of Rs 1050 apiece. The current market price of the stock is Rs 873.90 apiece with intraday surge of 1.13%. If you buy Metro Brands, you will likely receive, 20% return. 

The stock's 52-week high is Rs 980.00 apiece and 52-week low is Rs 446.00 apiece, respectively. It has a market capitalisation of Rs 23,746.41 crore. The stock rose 6% in last 1-month and 43% in last 1-year. It declined 2% in last 3-months.

According to the analyst, "A combination of superior store economics and a strong runway of growth should allow Metro to garner rich valuations going ahead. We value the stock at 52x P/E on FY25E EPS to arrive at a TP of INR1,050. Reiterate our Buy rating on the stock."

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.