5 Stocks That Can Rally Up To 15-37% In 2023: Motilal Oswal Assigns Buy Rating

Motilal Oswal has recommended investors to 5 stocks that can rally up to 37% in 2023. These stocks are Poonawalla Fincorp, Can Fin Homes, Axis Bank, IPCA Laboratories, and VRL Logistics. Check key details below:

1. Buy VRL Logistics

The last trading price of the stock is Rs 531 apiece with an intraday gain of 0.47%. Motilal Oswal has suggested investors to buy VRL Logistics with a target price of Rs 730 apiece.

If you buy VRL Logistics now, you can get 37% return. The company has a market capitalisation of Rs 4693 crore.

The stock has given maximum 96% return in last 3-years. In last 5-years, the stock has surged 23% and 23% again in last 1-year.

According to Motilal Oswal, "We believe the sale of the bus segment and the recent price increase in the goods segment are positive for VRL. We expect VRL to clock a 21% volume CAGR over FY22-24 in the goods business, with faster branch additions in untapped regions. We expect a revenue/EBITDA/PAT CAGR of 15%/13%/20% over FY22-24. We maintain our BUY rating with a TP of INR730 (28x FY24E EPS)."

2. Buy Axis Bank

The last trading price of Axis Bank is Rs 935 apiece. Motilal Oswal has recommended investors to buy Axis Bank with a target price of Rs 1130 apiece thus giving investors a return of 21%.

The 52-week high of the stock is Rs 958 apiece and 52-week low is Rs 618 apiece, respectively. The company has a market capitalisation of Rs 2,87,494.91 crore. The stock has surged 29% in just 3-months, 39% in 1-year, and 66% in last 5-years. In last 3-years, the shares of the large cap bank has given 22% return.

According to Motilal Oswal, "While the bank will continue to make investments, it expects to bring down the cost-to-assets ratio to ~2% by FY25- end. Loan growth is likely to remain 4-6% higher than the industry growth over the medium term, with an aim to reach a consolidated RoE of 18%. We estimate AXSB to deliver FY25 RoA/RoE of 1.8%/16.9%. AXSB is our top pick for CY23 with a TP of INR1,130 (2.0x Sep'24E ABV + INR94 for subs)."

3. Buy Can Fin Homes

The last trading price of the stock is Rs 530 apiece. Motilal Oswal has recommended investors to buy Can Fin Homes with a target price of Rs 630 apiece.

If you buy Can Fin Homes at CMP, you will get potential 19% return. The mid cap NBFC stock has given maximum 35% return in last 3-years. It has a market capitalisation of Rs 7059 crore.

According to the analyst, "For a RoA/RoE of 1.9%/17% in FY24E and triggers for valuation re-rating if the new management team (of MD&CEO/CFO/CRO) can gain investor confidence, we reiterate our BUY rating with a TP of INR630 (based on 1.8x Sep'24 P/BV)."

4. Buy IPCA Laboratories

The stock's last trading price is Rs 850 apiece. Motilal Oswal has suggested investors to buy IPCA Laboratories Ltd with a target price of Rs 1000 apiece.

If you buy IPCA Laboratories now, you will get 18% return. The mid cap pharmaceuticals company has a market capitalisation of Rs 21,583 crore. The mid cap stock has given 49% return in last 3-years and 184% return in last 5-years. The stock has declined 20% in last 1-year.

According to Motilal Oswal, "We remain positive on IPCA backed by superior execution leading to a) brand led growth in DF, b) product pipeline/cost minimization in API segment and gradual recovery in exports. Maintain BUY with upside of 18% from current levels."

5. Buy Poonawalla Fincorp

The last trading price of the stock is Rs 305 apiece with an intraday gain of 1.26%. Motilal Oswal has recommended investors to buy Poonawalla Fincorp with a target price of Rs 350 apiece thus giving a return of 15%.

The small cap NBFC stock has surged 15% in just 1-week. The stock has given 489% return in last 3-years and 41% return in last 1-year.

According to Motilal Oswal, "We model an AUM/PAT CAGR of 37%/~65% over FY22-FY25E, respectively. We also model an RoA/RoE of 4.8%/~12% in FY25E. PFL will have more levers from its fee income and operating cost ratios to deliver a further improvement in its RoE profile when it reaches steady-state. Initiate coverage with a BUY and a TP of INR350 (premised on 2.3x FY25 BVPS)."

Disclaimer

The stocks have been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.