Large, Mid Cap Multibagger Stocks Get Buy Call, ICICI Securities Sees Stocks Rising

ICICI Securities has maintained buy rating for two large cap, mid cap stocks as the analyst anticipates that stocks have rising potential. These 2 stocks are Dalmia Bharat Ltd and Havells India Ltd. If you buy these 2 stocks now, you will get maximum 34% return. Check key details below:

1. Buy Havells India Ltd

The last trading price of the stock is Rs 1155 apiece with an intraday gain of 0.19%. ICICI Securities has assigned buy rating to the stock with a target price of Rs 1550 apiece. If you buy Havells India, you can get potential 34% return.

The stock's 52-week high is Rs 1419 apiece and 52-week low is Rs 1037 apiece, respectively. The large cap company has a market capitalisation of Rs 72,383.80 crore.

It operates in Consumer Durables sector. The stock has given multibagger returns with last 5-years return at 113% and last 3-years return at 77%.

According to ICICI Securities, "We model Havells to report a PAT CAGR of 21.4% and RoE to be upward of 17%, over FY22-FY24E. We remain positive on the company's business model due to strong moats and growth opportunities. Maintain BUY with a DCF based target price of Rs1,550 (implied P/E 55x FY24E)."

We remain structurally positive on Havells due to its competitive advantages and the overall growth opportunity in consumer durables. Rural markets are just 5-6% of Havells Consumer sales. With improving availability of electricity, India's rural markets offer huge growth tailwinds to Havells. In order to tap the opportunity, the company commenced Rural Vistaar project four years ago, said ICICI Securities.

2. Buy Dalmia Bharat Ltd

The last trading price of the mid cap cement stock is Rs 1890 apiece with an intraday gain of 1.91%. ICICI Securities has assigned buy rating with a target price of Rs 2200 apiece.

If you buy Dalmia Bharat at current market price, you can get potential 16% return.

The stock's 52-week high is Rs 2102 apiece and 52-week low is Rs 1212 apiece, respectively. The company has a market capitalisation of Rs 35,447 crore. The stock has given multibagger returns to investors with last 3-years return at 132% and last 5-years return at 67%.

According to ICICI Securities, "We await the completion of the deal before factoring-in the acquired capacity; however, we increase our realisation growth assumption for FY23E/FY24E given the healthy price hikes in East and South India (~90% of DALBHARA's capacity exposure is to these regions) during the current quarter (Q3FY23). We increase our FY23E/FY24E EBITDA estimates by ~5%/6% and raise our target price to Rs2,200/sh (earlier: Rs2,000) based on 11x Dec'24E EV/E on quarterly rollover. Maintain BUY. Key risks: Lower demand/price and higher costs."

 

Disclaimer

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