7 stocks ICICI Direct bets on for Samvat 2081 for up to 40% potential upside
Ahead of the Diwali festivities to help you plan your investments, ICICI Direct has suggested 7 stock ideas across sectors, including HDFC AMC and Tata Power among others.
Even as Indian equities continue to tumble on the back of consistent FII outflows and escalated geopolitical unrest, and are down almost 8 per cent from all-time highs, domestic brokerage ICICI Direct has listed two catalysts that position Indian equity as a superior bet:
The two catalysts are
a) robust corporate earnings (likely to grow at 14% CAGR over FY24-26) and
b) Favorable growth-Inflation dynamics of India (~6-7% sustainable GDP growth with comfortable inflation of sub ~5%),
ICICI Direct pegs 1-year forward Nifty target at 27,500, implying double digit-digit gains yet again
Given these positives, ICICI Direct has pegged Nifty's one-year forward target at 27500 (22x FY26 EPS) with a sectoral preference towards Capital Goods/Infra, Private Banks (and AMCs) and select Auto, IT and Pharma pack.
Samvat 2081 Muhurat Picks- Sansera Engineering
ICICI Direct is bullish on the auto components company and iterates that with fresh capital infused, new tie-ups in non-auto space including plans for new greenfield facility, it bakes in 18.5 per cent revenue CAGR over FY24-27E.
Giving a 'buy' rating, the brokerage recommends buying the stock in the range of Rs 1,490-1,590 for a target of Rs 2,000 i.e. 28x PE on FY26-27E avg EPS. At the lower price band, the stock can offer a potential upside of up to 34 per cent.
Samvat 2081 Muhurat Picks- PCBL
For the carbon black manufacturer, the brokerage has pegged the target at Rs 600. The brokerage has given a 'buy' call amid
- profitable organic growth at its base carbon black business
- turnaround in sight at Aquapharm
- big opportunity in sight in Nano Silica.
ICICI Direct expects Sales/PAT at PCBL to grow at a CAGR of 21 per cent/27 per cent over FY24-27E.
Samvat 2081 Muhurat Picks- NCC
For a massive potential upside of 40 per cent, the brokerage has recommended to buy the construction company stock NCC for a target of Rs 400.
"Given the strong order book visibility and improving balance sheet strength, it is poised for healthy growth ahead," added the brokerage.
Samvat 2081 Muhurat Picks- Tech Mahindra
For the IT major, ICICI Direct has set the target at Rs 2,000, implying potential gains of 15 per cent.The brokerage believes, the company’s US$ revenue will grow at CAGR of 6.7% between FY24-27E, but operating profit growth is likely to outpace with EBIT margin improving from 6.1% in FY24 to 14.5% in FY27E, implying a
CAGR of 43.6% over FY24-27E.
Samvat 2081 Muhurat Picks- Tata Power
For the Tata group's utility company, the brokerage has pegged the target at Rs 530, implying 21 per cent potential gains. The brokerage house believes Tata Power offers an attractive opportunity to play the entire power value
chain in India together with its strong renewable capacity addition targets.
Samvat 2081 Muhurat Picks- Natco Pharma
In the pharma space, ICICI Direct is bullish on the smallcap company Natco Pharma with the target pegged at Rs 1,680, implying 25 per cent potential gains. "Our target price is Rs 1680 based on 18x FY26E base business EPS of Rs 87.2 plus Rs 110 NPV for gRevlimid," it noted.
Samvat 2081 Muhurat Picks- HDFC AMC
For the AMC company, the brokerage has set the target at Rs 5,500, implying 24 per cent potential gains. As per the brokerage, the stock remains a play on structural growth in Indian asset management domain with superior operational matrix. Considering relatively higher business growth without any balance sheet siness risk, we remain positive on the stock, added the brokerage.