Top 7 Largecap Stocks to Invest: Motilal Oswal picks ICICI Bank, SBI, ITC and others

Domestic brokerage Motilal Oswal in its report titled 'Top investment ideas May 2024' has recommended a few large-cap stocks for investors. Investors can add these stocks to their portfolio for good returns as per the report. 

Here are the top 7 large-cap stocks to invest in: 

Larsen & Toubro (L&T)

One can buy L&T's stock for a target price of Rs 4,400 apiece. The brokerage believes that green shoots are visible and the ordering momentum is expected to gather steam in the post-election period, resulting in valuation re-rating for the entire sector. 

Further, L&T’s growth is expected to be driven by 18 per cent growth in order inflows, led by a strong prospect pipeline. 

State Bank of India (SBI) 

Investors can buy SBI stock for a target of Rs 925 apiece. As per the report, SBI reported a steady quarter with steady growth in revenues, while robust asset quality helped the bank maintain strong control over provisioning expenses. It is well positioned to deliver steady earnings, with FY26E RoA/RoE of 1.1 per cent/18.5 per cent. 

ICICI Bank 

Investors can invest in ICICI Bank for a target price of Rs 1,300 apiece. Analysts expect the bank to sustain a 14 per cent compound annual growth rate (CAGR) in profit after tax (PAT) over FY24-26E and RoA/RoE of 2.26 per cent/18.0 per cent in FY26.

Coal India 

One can buy Coal India stock for a target price of Rs 530 apiece. Coal India remains Motilal Oswal's top pick in the metals and mining sector. With a robust volume outlook, healthy e-auction premiums, and lower costs, the outlook for the company is positive.

Titan 

Investors can invest in Titan for a target price of Rs 4,100 apiece. As per the report, with a current market share of around eight per cent in a sizable Rs 5 trillion market, there is significant headroom for growth. Its healthy growth outlook, favourable industry trends, and strong balance sheet make it a compelling option in the discretionary space. 

ITC 

Investors can buy ITC stock for a target of Rs 500 apiece. The earning CAGR at the Profit Before Tax (PBT) level stood at 8.5 per cent over FY18-23. Motilal Oswal expects ITC to post a seven per cent earnings CAGR over FY24-26. 

HCL Tech 

One can buy HCL Tech stock for a target price of Rs 1,700 apiece. As per analysts at Motilal Oswal, the company's capabilities in the IMS and digital space, along with strategic partnerships and investments in Cloud, HCL Tech may emerge stronger on the back of healthy demand for these services in the medium term. 

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