4 Large, Mid Cap Stocks Showing Potential To Rally: Motilal Oswal Assigns Buy Call

Leading brokerage firm Motilal Oswal has recommended investors to buy 4 mid cap and large cap stocks namely Vinati Organics, ICICI Bank, Indusind Bank, and Ashok Leyland. These stocks are showing the potential to rally up to 34%. Check key details below:

1. Buy Vinati Organics

Motilal Oswal has recommended investors to buy Vinati Organics with a target price of Rs 2500 apiece. The current market price of the stock is Rs 2061 apiece and if you but Vinati Organics at this price, you will get maximum 21% return.

The stock has given 326% return in last 5-years and 106% return in last 3-years. The mid cap stock has a market capitalisation of Rs 21,186 crore.

According to Motilal Oswal, "Vinati is the largest producer of ATBS in the world, with a global market share of more than 65% and contributing 53% to overall revenue in FY22. The management is confident that a niche product portfolio, expansion in its existing capacities, and foray into new products will enable it to keep the revenue momentum strong."

2. Buy ICICI Bank

The current market price of the large cap bank is Rs 860 apiece. Motilal Oswal has suggested investors to buy ICICI Bank with a target price of Rs 1150 apiece.

If you buy ICICI Bank now, you will get 34% return. The bank has a market capitalisation of Rs 6,00,348.41 crore. It has given 176% return in last 5-years and 59% return in last 3-years. In last 1-year, it has given return of 6%.

According to the brokerage firm, ICICI Bank has been reporting strong growth, led by its digital capabilities and its constant efforts toward simplifying customer journeys and strengthening the trust and brand. The bank is realigning the distribution to capture the opportunities in various markets."

3. Buy Indusind Bank

Motilal Oswal has recommended investors to buy Indusind bank with a target price of Rs 1450 apiece. The current market price of the bank is Rs 1227 apiece. If you buy Indusind Bank now, you will get 18% upside.

It has market capitalisation of Rs 95,186.07 crore. It has given return of 33% in last 1-year and declined 29% in last 5-years.

According to Motilal Oswal, "Healthy provisioning in the MFI portfolio and contingent provisioning buffer of 1.0% of loans will enable a steep decline in credit cost, thus driving a sharp recovery in earnings. IIB's operating performance remains on track led by healthy NII growth and controlled provisions. Asset quality ratios have improved driven by lower slippages in corporate as well as consumer portfolios. Thus, outlook for credit cost remains controlled."

4. Buy Ashok Leyland

Motilal Oswal has assigned buy call to Ashok Leyland with a target price of Rs 180 apiece. The current market price of the stock is Rs 151 apiece. If you buy Ashok Leyland now, you will get 19% return.

The company operating in Auto sector has a market capitalisation of Rs 44,585.09 crore. It has given maximum 86% return in last 3-years and 19% in last 5-years.

According to Motilal Oswal, "2QFY23 witnessed a continued recovery in market share and start of a margin recovery, led by initial gains in commodity prices. Good demand, a stable pricing environment, and softening commodity prices should drive a strong recovery in its financial performance. The company gained market share, led by: a) filling of product gaps; b) astute network management, which aided market share increases in all its geographies; and c) the Avtar range of products, which offers a lower TCO."

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.