Stocks to buy: ICICI Securities sees up to 32% upside in Axis Bank, L&T Finance, Dodla Diary and Ramco Cements

Brokerage firm ICICI Securities has maintained buy calls on Axis Bank, Dodla Dairy and Ramco Cements, while upgraded rating from 'add' to 'buy' for L&T Finance Holdings. Of the four, the brokerage firm has set most aggressive target for Axis Bank. It has also cut target price for Ramco Cemnets, but has matiained a buy rating on the share. The brokerage report is based on performance of these commpnies in Q3fy22, their growth potential and expansion plans. 

Axis Bank
ICICI Securities has raised the target price of this private lender in view of strong q3fy22 result. The brokerage revised the target price of Axis Bank to Rs1,050 from Rs992 earlier, saying Bank’s q3fy22 earnings encouragingly surpassed expectations across operating parameters. With this revision in target, the brokerage sees an upside of 32% for Axis Bank on CMP of Rs 705. Key risks for private lender as per the brokerage is lower than anticipated growth which can cap RoE improvement and elevated opex offsetting improving operating performance.

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L&T Finance Holdings
Retaining target price of Rs 97, ICICI Securities upgraded rating of this leading NBFC company from 'add' to 'buy'.  The brokerage is of the view that the stock could surge nearly 25 on CMP of Rs 73 on back of rapid retailisation of portfolio, strengthening existing products 'expertise and customer-centric approach to cross-sell loan products. It said incremental stress in infra and real estate financing will be key to watch out going forward.

Dodla Diary:  
Stating that the company has single-digit growth in milk procurement and it also has market growth and market share expansion potential, the brokerage has given a buy rating to this share and set a target price of Rs 615 on CMP of Rs 521, a 15 per cent jump of the current market price. The report, however, underlined that delay in distribution and procurement expansion, and failure of some of the new products and potentially higher competitive intensity in South India remains key for this company.  

Ramco Cements
The brokerage has cut target price of this cement share from Rs ,1155 to Rs 1,035. On CMP of Rs 897, the revised target price comes out to be around 13 per cent. This is 9 per cent lower against previous target of Rs 22. It said the company face double whammy of higher costs and lower prices. "With input costs likely to peak out and prices slated to improve during the peak construction period of Jan-Jun, we believe worst in terms of margin performance is probably behind," it said while assigning buy rating.