Stocks To Hold: 3 Large Cap Stocks Get Hold Call From ICICI Securities, ICICI Direct

Leading brokerages ICICI Securities, ICICI Direct have maintained hold rating to 3 stocks. These stocks are Sundaram Finance, Petronet LNG, and JSW Steel. Check key takeaways below:

1. Sundaram Finance

The last trading price of the stock is Rs 2317 apiece. It has a market capitalisation of Rs 25,753.32 crore. ICICI Securities has assigned hold rating to Sundaram Finance with a target price of Rs 2249 apiece. The large cap stock has given maximum 42% return in last 3-years.

According to ICICI Securities, "Consequently, we cut down our NIM estimates for FY23E/FY24E which we believe will be offset by lower opex to maintain profitability. Maintain HOLD. We believe current valuations (2.8x FY24E derived P/B for lending business) balance riskreward well. We maintain HOLD with target price of Rs2,249 based on 2.5x/3.0x P/B on FY24E book value of NBFC+HFC / insurance business and 15x P/E on AMC's FY24E PAT."

2. Petronet LNG

The last trading price of the stock is Rs 211 apiece. The large cap company has a market capitalisation of Rs 31,770 crore. The stock has declined 22% in last 3-years and 2% in last 1-year.

According to ICICI Securities, "We upgrade the stock to HOLD, with a revised TP of Rs210/sh. (earlier TP of Rs 186/sh) Key upside risks: Stronger utilisation, sharp reduction in LNG prices. Key downside risks: Higher disruption of Russian supplies, slower execution of expansion plans."

The stock has underperformed Sensex by 9% over the past 12 months and valuations are unchallenging, at 9.2 FY24E P/E, 5.4EV/EBITDA coupled with a 6.5% dividend yield (FY24E). While near-term earnings constraints remain, we believe earnings have bottomed out and over the medium term, the combination of stronger volumes and some moderation in LNG prices, along with higher capacity will ensure earning growth.

3. JSW Steel

The last trading price of the stock is Rs 764 apiece. The large cap company has a market capitalisation of Rs 1,84,832.76 crore. The stock has given 188% return in last 5-years and 184% return in last 3-years. In last 1-year, the shares have rallied 19%.

According to ICICI Direct, "JSW Steel's share price has given a return of ~19% over the last one year (from ~Rs 623 in December 2021 to ~Rs 740 in December 2022). We maintain our HOLD rating on the stock."

Disclaimer

The stocks have been picked from the brokerage report of ICICI Direct and ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage Houses 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.