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Stocks To Buy: 3 Stocks ICICI Securities Is Suggesting To Buy For Long Term Investors

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Markets are at all-time highs, making it prohibitively expensive at this time. Brokers, on the other hand, are positive on a few equities. In the first half of 2021, India's stock market soared, with both the S&P BSE Sensex and the Nifty 50 indexes setting new highs and boosting investor wealth by about Rs 40 lakh crore. Here are three equities that ICICI securities advise investors to buy for the long run.

 

Mayur Uniquoters

Mayur Uniquoters

Mayur Uniquoters (MUL) is a major operator in the technical textile industry, producing synthetic leather for automotive, footwear, and apparel, among other applications. Based on its research ICICI Securities has placed a "buy" call on the stock with a price target of Rs 625 with the upside of 25%.

"MUL's share price has been a laggard in the past and has just given CAGR returns of ~5% in the last five years. This was amid a delay in setting up of new plant & high gestation period for breaking into premium auto OEMs With new capacities in place and MUL starting to supply to Mercedes Benz (South Africa), we remain positive and retain our BUY rating on the stock Target Price and Valuation: We value MUL at | 625 i.e. 22x P/E on FY23E EPS," the research report said.

Alternate Stock Idea

Apart from MUL, the brokerage also favour JK Tyre in the auto coverage. Walking the talk when it comes to b/s deleveraging, asset sweating, and capital efficiency. It recommends a BUY rating with a target price of Rs 180.

Mayur Uniquoters
 

Mayur Uniquoters

Key triggers for future price-performance:

  • Increasing share of supplies of premium products to global auto OEMs
  • Resumption of healthy double-digit topline and bottom-line growth
  • Sustenance of EBITDA margin profile in upward of ~24%
  • Product profile immune to technology risk, particularly in the auto space.

Market capitalisation Rs 2,228.9 Cr
Total Debt FY21P, Rs 41.1 Cr
EV Rs 2,043.9 Cr
52 week H/L Rs 546 / 209
Equity capital Rs 22.3 Cr
Face value Rs 5

Infosys

Infosys

Infosys Ltd (Infy) is a leading IT company that serves the BFSI, retail, communication, manufacturing, and high-tech industries. Digital technology accounts for more than half of the company's income.

"Infy's share price has grown by ~3x over the past five years (from Rs 586 in July 2016 to Rs 1,577 levels in July 2021). We remain further positive and retain our BUY rating on the stock Target", the ICICI Securities report said.

Based on its research ICICI Securities has placed a "buy" call on the stock with a price target of RS 1,825 i.e. 28x P/E on FY23E EPS.

Alternative Stock Idea

In addition to Infy, we favor TCS in our IT coverage. We rate the company BUY with a target price of Rs 3,800 based on strong organic growth, solid financials, industry-leading margins, and a healthy capital allocation philosophy, it added.

Infosys

Infosys

Key triggers for future price-performance:

  • Infy is a key beneficiary of multi-year growth (15-20%) in digital technologies
  • Increase in outsourcing in Europe, vendor consolidation, and large deal pipeline other key growth drivers
  • Infy to post-industry leading growth in revenues (CAGR of 16% in FY21-23E)
  • Healthy cash generation, robust dividend distribution & buyback.

Market Cap Rs 6,72,585.8 Cr
CC&E Rs 27,056.0 Cr
52 week H/L Rs 1591 / 781
Equity capital 2,124.0
Face value Rs 5
EV Rs 6,45,529.8Cr

Mindtree

Mindtree

Mindtree is a mid-tier IT company with operations in the United States, Europe, and the rest of the world, focusing on BFSI, Communication Media & Technology, Retail, and Travel.

"Mindtree share price has grown by ~4x over the past five years (from Rs 650 in Jul 2016 to Rs 2622 levels in July 2021. We upgrade the stock from HOLD to BUY with Target Price and Valuation at Rs 3065 i.e. 32x P/E on FY23E, the research report stated.

Alternative Stock Idea

In addition to Mindtree, we like LTI in our IT coverage. The ability of Larsen & Toubro Infotech (LTI) to deliver end-to-end solutions is projected to aid in the company's industry-leading growth. We recommend BUY with a target price of Rs 4,580, it added.

Mindtree

Mindtree

Key triggers for future price-performance:

  • Key beneficiary of robust growth in cloud, data, and experience
  • Traction in multi-year deals client mining, scaling up existing clients to US$50 million
  • ell poised to clock industry-leading double-digit growth
  • Well-poised to maintain 20% plus margins

Market Cap Rs 43,183.4 Cr
Cash and Investment Rs 1,281.4Cr
EV Rs 41,902 Cr
52 week H/L 2637/ 936
Equity capital 164.7
Face value Rs 10

Disclaimer

Disclaimer

Views mentioned herein are taken from the brokerage report of ICICI Securities. Neither the author, nor the brokerage nor Greynium Information Technologies would be responsible for losses incurred based on the article. Please consult a professional advisor. Investing in stock markets is risky.

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