Top Diwali Muhurat picks: ICICI Direct recommends these 10 stocks to buy
- The brokerage continues to advise investors to utilise equities as a key asset class for long term wealth generation
As part of its Diwali Mahurat picks, brokerage firm ICICI Direct has recommended ten stocks that investors look to buy as the brokerage sees reasonable opportunities across the market spectrum with key filter being quality and continues to advise investors to utilise equities as a key asset class for long term wealth generation by investing in quality companies with strong earnings growth and visibility, stable cash flows, RoE and RoCE.
ICICI Direct's top Diwali stock picks -
Axis Bank: “Robust business growth, improving operational efficiency and synergy benefits from the Citi acquisition would reflect positively on the earnings trajectory and price performance. We believe Axis Bank will deliver an RoA, RoE of ~1.5%, ~15%, respectively, over FY22-24E,” the note stated. The brokerage has recommended buy on the stock with a target price of ₹970.
City Union Bank: With healthy CRAR at ~20.5% (tier I at 19.4%), the bank is expected to continue higher business growth in FY22-24E without any significant dilution. The brokerage has target price of ₹215.
Apollo Tyres: ATL is currently focusing upon capital efficiency, sweating of assets, controlled capex spends, healthy FCF generation & deleveraging of balance sheet, ICICI Direct said. (TP: ₹335)
Eicher Motors: "With continued focus on its rebalance strategy, minimal EV risk in near future, shift of consumer preference towards premium motorcycles and healthy response to Hunter 350 we expect sales volumes at RE to grow at a CAGR of 25% in FY22-24E." (TP: ₹4,170)
Coforge: The brokerage bakes in 19.1% revenue CAGR over FY22-24E while 220 bps margin expansion, continued offshoring focus will drive margin expansion. (TP: ₹4,375)
Lemon Tree Hotels: As per the brokerage, the company is well positioned to capture the unorganised market share due to slowdown in the upcoming room supply in the wake of ongoing distress. (TP: ₹110)
Healthcare Global: "It is focused on consolidating existing network through cost optimisation measures to improve margin and ramping up patient’s footfall by engaging in direct-to patient promotion strategies." (TP: ₹345)
Lauras Labs: Laurus has multiple planned capacity expansions in portfolio based on complexity and scale towards strengthening and diversifying business by an increased focus on non-ARV APIs and formulations and high growth CRAMS segments. (TP: ₹675)
Container Corp: The brokerage expects it to be a major beneficiary of the modal shift of freight volume share from road in favour of rail as envisaged in the new National Logistics Policy. (TP: ₹890)
Havells India: “We believe Havells will report strong revenue CAGR of 16% over FY22-24E led by new product launches, dealer expansion.” (TP ₹1,650)
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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