Buy 1 Navratna PSU, Hold Large Cap Stock: ICICI Direct Recommends 2 Stocks Showing Upside

ICICI Direct has recommended investors to buy 1 Navratna PSU stock, National Aluminium Company Ltd and hold retail sector stock, Avenue Supermarts Ltd. National Aluminium is a mid-cap company while Avenue Supermarts is a large cap company. Check details below:

1. Buy National Aluminium Company Ltd

ICICI Direct has recommended investors to buy National Aluminium Company Ltd also known as NALCO with a target price of Rs 94 apiece. If you buy National Aluminium Company at current price, you will get 13% return.

The last trading price of the stock is Rs 83.60 apiece with 52-week high at Rs 132.75 apiece and 52-week low at Rs 67.00 apiece, respectively. The company has a market capitalisation of Rs 15,354 crore.

The stock has surged 8% in last 1-month and 20% and declined 26% in last 1-year. ICICI Direct has given a time period of 3-months when the stock will reach the specified target price.

National Aluminium Company Limited (NALCO) is a Schedule 'A' Navratna CPSE established on 7th January, 1981 having its registered office at Bhubaneswar. It is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the Country. At present, Government of India holds 51.28% of paid up equity capital.

2. Hold Avenue Supermarts

ICICI Direct has recommended investors to hold the shares of Avenue Supermarts with a target price of Rs 4000 apiece. The current market price of the stock is Rs 3678.65 apiece with an intraday fall of 4.75%.

Its 52-week high is Rs 4606 apiece and 52-week low is Rs 3185 apiece, respectively. It has a market capitalisation of Rs 2,38,293.64 crore. If you hold Avenue Supermarts, it indicates an upside of 9%.

According to ICICI Direct, "D-Mart continues to remain India's most profitable low cost retailer, a strong play on India's retail growth story and a key beneficiary of unorganised to organised segment shift. We introduce FY25E estimates and bake in earnings CAGR of 22% in FY23-25E (vs. CAGR of 24% witnessed in FY20-23E). We maintain HOLD recommendation on the stock. We value ASL at Rs 4000 i.e. 4x FY25E EV/Sales."

Avenue Supermarts (ASL) operates supermarket chain under the 'D-Mart' brand with core focus on value retailing. D-Mart, through its proven business model, has been able to maintain consistent profitability and remains an exceptional performer in its peer group.

Disclaimer

The stocks have been picked from the brokerage report of ICICI Direct. 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.