Stocks To Buy: ICICI Direct Suggests 2 PSU Banks, NBFC Stock After Robust Q3 Results

ICICI Direct has recommended investors to buy 2 bank stocks and 1 NBFC stock that are expected to soar soon after they delivered robust Q3 performance. These stocks are Bank of Baroda, State Bank of India, and Housing Development Finance Corporation Ltd. Check details pertaining to the stocks below:

1. Buy Bank of Baroda

The last trading price of the stock is Rs 163.65 apiece with an intraday rally of 6.20%. ICICI Direct has given buy rating to BoB with a target price of Rs 200 apiece. If you buy Bank of Baroda shares now, you can expect to receive a return of 23% soon.

It has a market capitalisation of Rs 84,629.34 crore. When it comes to BoB's Q3 result, it announced robust earnings led by steady NIMs and lower opex. It reported its PAT at Rs 3853 crore, up 75.4% YoY.
The stock gave a return of 10% in last 3-months, 35% in last 6-months, and 49% in last 1-year. The stock gave a return of 90% in last 3-years.

According to ICICI Direct, "We retain our BUY rating on the stock. We value the bank at ~0.9x FY25E ABV and revise our target price to Rs 200/share from Rs 220/share earlier."

2. Buy State Bank of India

ICICI Direct has assigned buy call to SBI bank with a target price of Rs 700 apiece. Last trading price of the bank is Rs 544.45 apiece with an intraday gain of 3.12%. If you buy State Bank of India now, you can expect an upside potential of 29%.

It has a market capitalisation of Rs 4,85,900.49 crore.
The bank stock declined 6% in last 1-year and rallied 82% in last 3-years.

When it comes to the bank's Q3 result, its GNPA, NNPA rose 38 bps, 3 bps QoQ, respectively; slippage ratio at 0.72%. Other income saw substantial growth led by write back of MTM losses. Lower provisions & healthy topline resulted in PAT growth of 68.5% YoY at Rs 14206 crore.

According to ICICI Direct, "Thus, we maintain our BUY rating on the stock. We value the bank at ~1.2x FY25E ABV and subsidiaries at ~Rs 172/share to arrive at a revised target price of Rs 700 from Rs 750 earlier as multiples across banks have moderated."

3. Buy Housing Development Finance Corporation Ltd

ICICI Direct has assigned buy call to leading NBFC stock, HDFC Ltd with a target price of Rs 3150 apiece. Last trading price of HDFC Ltd is Rs 2695.00 apiece with an intraday gain of 3.15%.

If you buy HDFC Ltd now, it can soar 17%. The company has a market capitalisation of Rs 4,92,313.07 crore. The stock gave a return of 8% in last 3-months, 13% in last 6-months, and 6% in last 1-year. It rallied 19% in last 3-years.

According to ICICI Direct, "We retain our BUY rating on the stock. We maintain our multiple at ~1.8x FY25E core ABV and Rs 1414 (15% discount) for subsidiaries and revise our TP from Rs 2850 to Rs 3150."

When it comes to Q3 FY23 results, HDFC reported a modest performance.

 

Disclaimer

The stocks have 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.