Stocks To Buy: 7 Stock Picks For New Year 2023 From Motilal Oswal

Motilal Oswal has selected a few stocks to buy for new year 2023, in its latest report. Among these include several top names. Here are a few stocks where the brokerage has a "buy" call on from the large cap space.

7 stocks to buy for 2023

Among the top picks by the brokerage firm is the stock of IT major Infosys, which had a current market price of Rs 1495. Among the other stocks to buy are those from the banking sector, including names like Axis Bank and State Bank of India. There is no mention of ICICI Bank however. Among the other top largecap stocks that the brokerage has a buy for the new year 2023, including stocks like ITC, Maruti, Titan and Ultratech Cement. The rest of the stocks are from the midcap and small cap space.

Buy Infosys, SBI and ITC for 2023, says Motilal Oswal

According to Motilal Oswal, Infosys continues to see traction in the large deal pipeline, despite an adverse demand environment. It is a long term beneficiary of an acceleration in IT spends, given its capabilities around Cloud and Digital transformation.

For SBI, the brokerage says that it is one of the few large-cap stocks available at reasonable valuation with high growth visibility (expect ~32% PAT CAGR over FY22-24), led by strong Retail loans and pick-up in corporate segment. "Asset quality remains strong, with a continuous improvement, while the restructured book remains
under control at 0.9%. High mix of floating loans, which will benefit from loan re-pricing, will continue," the brokerage has said.

'We are positive on ITC fueled by a: a) better-than-expected demand recovery and a healthy margin outlook in Cigarettes, b) healthy sales momentum in the FMCG business, c) smart recovery from the Hotels business, and d) better capital allocation in recent years," Motilal Oswal has said.

But Axis Bank and L&T, says Motilal Oswal

Axis Bank has been witnessing strong growth in Retail and Mid-corporate segment, which along with MSME, would remain the key growth drivers. it expects cost-to-assets ratio to moderate at ~2% by the end of FY25, which coupled with a benign credit cost would aid RoE expansion. We estimate AXSB to deliver FY24E RoA/RoE of 1.8%/18.1%.

For L&T, Motilal Oswal has has stated that it has a dominant position and market share in most of it operating verticals and is beneficiary of record high order book, improving health of Hyderabad Metro project, and revival in private capex.

Buy Ultratech Cement and Titan

For Ultratech Cement, the brokerage has noted that the company is expanding grinding capacity domestically to 131mtpa/154mtpa by FY23E/FY25-26E which offers strong growth visibility. "Further, Cement demand is expected to pick up post the festive season and volume growth should be in double-digits in FY23/24. We expect sales volume growth of ~9% in FY23/24," it has stated in its report.

 

Disclaimer

Greynium Information Technologies, the Author, and the respective Brokerage house, Motilal Oswal are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.