Stocks To Buy: ICICI Direct Bullish On 3 Stocks With Good Return In 15-18 Months

Leading brokerage ICICI Direct has suggested investors to buy the stock of TCI Express, Kajaria Ceramics, and Grindwell Norton. If you buy these stocks now at their current market price, you can get a maxim return of up to 17%.

1. TCI Express Ltd

The current market price of TCI Express is Rs 1799 apiece. ICICI Direct has suggested investors to buy the stock with a target price of Rs 2195 apiece. Buy the stock now to receive 22% potential return. The mid-cap company has a market capitalisation of Rs 6933 crore.
According to ICICI Direct, "Asset light business, with IT enabled owned branches, keeps the business operations at optimum levels and aligned to the company strategy of providing customised express solution to its customers. It makes TCI Express well positioned to maintain and strengthen its leadership position among logistics peers. We remain positive on the stock and maintain our BUY recommendation. We value the stock at Rs 2195 i.e. 41x P/E on FY24E EPS."
TCI Express is a leading asset light B2B (95% of revenues) express logistics company with 28 sorting centres, 800+ owned pan-India centres covering 40000 pick-up and delivery points.

2. Kajaria Ceramics

The current market price of Kajaria Ceramics is Rs 1056 apiece with market capitalisation of Rs 16,823 crore. ICICI Direct has recommended investors to buy the stock with a target price of Rs 1210 apiece. If you buy the stock now, it can give a return of 15%.

According to ICICI Direct, "Kajaria is a solid play on tiles segment with brand leadership reflecting in superior realisations & margins. We believe gas price uncertainty is fully built in and margins will improve from H2FY23. Thus, we maintain BUY. We value Kajaria at Rs 1210/share, at 36x FY24 P/E."

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India with a current annual capacity of 84.5 mn sq metre (MSM).

3. Grindwell Norton

The current market price of Grindwell Norton is Rs 2107 apiece with a market capitalisation of Rs 23,338 crore. ICICI Direct has given buy rating to the stock with a target price of Rs 2460 apiece and a potential return of 17%.

According to ICICI Direct, "Going forward, accelerated growth in performance plastics & ceramics and exports is expected to drive long term incremental growth. We remain long term positive and maintain our BUY rating on the stock. We value GNL at Rs 2460 i.e. 60x P/E on FY24E EPS."

Grindwell Norton (GNL) is the market leader in the India abrasive market with ~26% market share. The segments include abrasives (contributing ~57%), ceramics & plastics (33%) and IT services & others (10%).

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.