ICICI Direct Picks 9 Stocks For 2023 To Invest, ICICI Direct published a Market Outlook report on December 27, 2022. where the report the brokerage has picked brokerage has named the top stock picks for 2023. These 9 stocks are Kajaria Ceramics, Sterlite Technologies, Maruti Suzuki, Mahindra CIE, IndusInd Bank, HDFC AMC, Nesco Ltd, V Guard Industries, and Reliance Industries. Below are the key takeaways from the stocks:
1. Kajaria Ceramics Limited
Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India with a current annual capacity of 84.5 mn sq meter (MSM).
The stock last traded at Rs 1,131.70/share. The brokerage has assigned a buy on the stock with a target price of Rs 1,340/share. With the given target price, it would give a return of up to 19%. It has given a maximum of 118.32% returns in 3 years.
Key risks: Gas price volatility, demand moderation.
2. Sterlite Technologies Limited
Sterlite Technologies (STL) is a leading telecommunication infrastructure player with offerings in optical fiber and cables, hyper-scale network design, and deployment and network software.
The current market price of the stock on NSE is Rs 173.05/share. The brokerage has assigned a target price of Rs 220/share on the stock. It claims a potential upside of 28% from its current level. It has given the highest returns in 3 years around 51.8%.
Key risks: Volatility in the margin, continued leverage. Join Our Telegram Channel
3. Maruti Suzuki India Limited
Maruti Suzuki (MSIL) is the market leader in the Indian passenger vehicle space, commanding ~43% market share as of FY22.
The brokerage has assigned a target price of Rs 11,200/share for the stock. If you buy the stock at the current market price, it could fetch a gain of up to 33%. The stock last traded at Rs 8,421.05/share on NSE. It has given a maximum of 15.4% returns in 1 year.
Key risks: Covid led slowdown in demand, adverse currency moves i.e. unexpected appreciation of the Yen vs. Rupee.
4. Mahindra CIE Automotive Limited
Mahindra CIE (MCI) is part of the Spain-based CIE Automotive Group. It is a multi-technology, multi-product automotive component supplier.
ICICI Direct assigns buy on the stock with a target price of Rs 410/share. The stock is likely to fetch gains up to 22% considering you buy the stock at the current market price. The current market price of the stock on NSE is Rs 337.70/share. It has given a maximum of 103.43% returns in the 3 years.
Key risks: Slowdown in the global economy and slower than anticipated margin recovery profile.
5. IndusInd Bank
IndusInd Bank is a Hinduja group promoted newer age private sector bank and is the fifth largest private bank in India.
Brokerage recommended ‘buying’ the stock for a target price of Rs 1,387/share. Considering this estimated target price, the stock is likely to give 20%. The current market price of the stock is Rs 1,214.15/share. Over the past 1 year, the stock has given a maximum of 42.4% positive return.
Key risks: The slower pace of liabilities accretion could impact NIM; moderation in earnings momentum led by elevated opex.
6. HDFC Asset Management Company Limited (HDFC AMC)
HDFC AMC is among the largest and most profitable mutual funds with a QAAUM of ~₹ 4.2 lakh crore as on September 2022. Market share as of Q2FY23 was at ~11%.
The brokerage assigns a target price of Rs 2,600/share to the stock. It claims a potential upside of 21% from its current level. The current market price of the stock is Rs 2,154.40/share on NSE. The stock has given maximum returns in 3 months around 15.85%.
Key Risks: Elevated redemption in non-SIP AUM and increase in competitive intensity impacting yields.
7. Nesco Ltd
Nesco Ltd (Nesco) is in the business of development and management of commercial/IT-ITeS real estate, exhibition centers, and food businesses.
The brokerage recommends “Buying” the stock with an estimated target price of Rs 800/share. Considering the current market price and the target price, the stock could fetch a return up 33%. The stock last traded at Rs 604.40/share on NSE. The stock has a maximum of 13.86% returns in 5 years.
Key Risks: a) Any further Covid wave; b) Any exit and failure to release in commercial business. Join Our Instagram Channel
8. V Guard Industries Limited
V-Guard is a well-known FMEG brand in the electrical and electronics space especially in South India, with a presence of over four decades.
The brokerage rated “buy” to the stock with a target price of Rs 310/share. According to the brokerage, with the given target price, it could fetch a return of up to 17%. On the NSE, the stock last traded at Rs 265.35/share. It has given a maximum of 25.17% positive returns in 3 years.
Key Risks: Slow rural demand and reversal in commodity prices may delay margin recovery
9. Reliance Industries Limited
Reliance Retail has been one of the fastest, largest growing retailers in recent times. In FY18 -22, it recorded a staggering 30 % revenue CAGR with sales worth nearly Rs 2 lakh crore in FY22.
With a buy call on the stock for a target price of Rs 3,050/share, the stock is likely to surge up to 20% from its current level. The Current Market Price (CMP) of the stock is Rs 2544.45/share on NSE. It has given a maximum of 175.31% positive returns in the last 5 years.
Key Risks: Lower discretionary spending owing to higher inflation can subdue sales and lower-than-expected refining margins.
Stocks, CMP, Target Price, Upside
| Stocks | CMP (Rs) | Target Price (Rs) | Upside (%) |
|---|---|---|---|
| Kajaria Ceramics | 1131.7 | 1340 | 19 |
| Sterlite Technologies | 173.05 | 220 | 28 |
| Maruti Suzuki | 8421.05 | 11200 | 33 |
| Mahindra CIE | 337.7 | 410 | 22 |
| IndusInd Bank | 1214.15 | 1450 | 20 |
| HDFC AMC | 2154.4 | 2600 | 21 |
| Nesco Ltd | 604.4 | 800 | 33 |
| V Guard Industries | 265.35 | 310 | 17 |
| Reliance Industries | 2544.45 | 3050 | 20 |
Disclaimer
The stocks have been picked from the brokerage report of ICICI Direct. The Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. nhlconsultancy.com advises users to consult with certified experts before making any investment decision.