Stock To Buy: 3 Major Stocks Recommended By ICICI Securities For More Than 50% Returns

ICICI securities, a renowned brokerage firm, publishes equity research reports on a regular basis with the buy, sell & hold call. In the previous 7 days, the brokerage three equity research report on major companies with a buy call and robust potential upside. Considering their Target price and the Current Market Price (CMP), these 3 stocks have the robust potential to gain more than 50% in 12 months. Here is the list of these 3 major stocks.

Tata Communications

The CMP of Tata Communications is Rs 875 per share. It hit the 52-week at Rs 856.25 per share on 15 June 2022. While the 52-week high is Rs 1,591.95 per share. Currently, the stock is trading just Rs 1.25 above its 52-week low. The P/E ratio is 16.83, while the sector P/E ratio is 22.83, which is add a positive sign for this stock.

Tata Communications' stock price has dropped nearly 32.81% in the last year. It has given negative returns over a short period of investment horizon, notably during the previous 1 year. However, it also gave a stunning 77.29% return on long-term investments of three years, and roughly 18.93% positive returns on investments of five years. With a market capitalization of Rs. 24,953.18 crore.

CMP	Target Price	Potential Gains
Rs 875	Rs 1,600	82.86%

The stock has the potential to gain a massive 82.86% in 12 months, considering the Target Price of Rs 1,600 and the CMP of the stock.

ICICI Securities Views about the Tata Communications

ICICI Securities in its report on Tata Communication said, "Tata Communications organised its annual investor day on 14th June 2022 where it shared certain lead indictors that helped appreciate the company's efforts to drive revenue growth, which was constrained by externalities particularly supply of equipment. It stated the company will continue adding to funnel, and improve conversion which should aid accelerate revenue growth as supply normalises. International market is the key focus area where it sees significant opportunity to drive growth; it would continue with its efforts to cement India market position. Though data services revenue growth was disappointing in FY22, we continue to keep faith as management strategy is anchored at driving faster and durable growth. Our estimates remain unchanged with target price at Rs1,600 (20x FY24E P/E). Maintain BUY."

State Bank of India (SBI)

The CMP of the SBI is Rs 441.60. The recorded 52-week low is Rs 400.50, and the 52-week high is Rs 549. The P/E ratio is 10.90, while the sector P/E ratio is 10.16.

In terms of returns on investment over the last five years, the stock has performed well, and it gave 54.43% of positive returns. It has provided the best returns on investment in the last three years around 28.45%. In one year, the stock moved up nearly 3.67%. The stock has not given any positive returns in short-term investment, fallen nearly 10.38 in 1 year.

CMP	Target Price	Potential Gains
Rs 441.60	Rs 673	52.40%

Given the brokerage's target price of Rs 673 and the CMP of the stock, it has a massive upside potential of about 52.4% in the next 12 months.

ICICI Securities Views about SBI

According to the ICICI Securities, "From 'Enterprising bank, enduring enterprise' in FY20 to 'Resilience, People, Technology' (as pillars of future growth) in FY21, State Bank of India's (SBI) FY22 annual report is themed 'Setting new standard in banking excellence' focusing on productivity, adaptability, sustainability and inclusivity."

Further, the brokerage has stated, "SBI exited FY22 with 13.9% RoE and 0.67% RoA aided by growth build-up, GNPAs at a decadal low, slippages at <1%, credit cost at 55bps and steady margin profile. Improved visibility on asset quality with 'new normal' credit cost of 1%, credit growth of 13%/15% for FY23E/FY24E, asset resolution and stable NIMs will drive RoE to >16% by FY23E/FY24E and valuations to 1.5x Sep'23E book. Maintain BUY with an unchanged target price of Rs 673."

 

JK Cement

The CMP of JK Cement is Rs 2,090.35 per share. The 52-week low is Rs 2,045 recorded on November 7, 2021, and the 52-week high was Rs 3,838 recorded on November 8, 2021. The P/E ratio is 23.51, while the sector P/E ratio is 25.96, as the P/E ratio is low compared sector P/E ratio, it adds a plus point.

When looking at the stock's ROI over the last 1 year, it's clear that the stock has not delivered positive returns. Although the stock has not performed well in the recent year, it has provided solid returns over a three and five-year investment period. In three years, it moved up around 106.66%, and in five years, it moved up 106.21%.

CMP	Target Price	Potential Gains
Rs 2,090.35	Rs 3,170	51.65%

Stock could climb nearly 51.65% in the near future, according to the brokerage's predicted Target Price of Rs 3,170 and the CMP of the stock.

ICICI Securities Views about the JK Cement

ICICI Securities in its report has said, "In our view, JK Cement would emerge as the sixth largest cement group in India with 21mnte grey plus white cement/putty capacity by Q3FY23 with potential to increase the same by >50% via brownfield expansion at ~US$70/te at Panna unit (MP) in medium term. Unlike mid-cap peers, it derives nearly 25% EBITDA (Rs4bn) from white cement/putty portfolio which provides steady-state cashflow to fund its grey cement expansions. The company enjoys better grey cement market mix with no exposure to East and <10% exposure to South markets where prices remain volatile due to oversupply concerns. JK Cement continues to gain market share with 9% volume CAGR over FY13-22E vs <5% for industry and is expected to post 12% volume CAGR over FY22-24E. Its standalone blended EBITDA/te is unlikely to fall below Rs1,000/te even in FY23E vs Rs1,108/te in FY22E despite cost pressures. Hence, we believe, JK Cement may trade at a premium to its long-term historical average once the recent concerns around sharp fuel cost escalation recede. Maintain BUY with an unchanged target price of Rs3,170/share based on 13xFY24E EV/E, implying 50% upside. JK Cement remains our high conviction preferred pick in the sector."

Disclaimer

The stocks have been picked from the brokerage report 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 check with certified experts before taking any investment decision.