Top Picks For 2023: ICICI Direct Picks 9 Stocks For 2023 To Invest, Recommends Buy

ICICI Direct published a Market Outlook report on December 27, 2022. where the brokerage has named the top stock picks for 2023 to invest. These 9 stocks are Kajaria Ceramics, Sterlite Technologies, Maruti Suzuki, Mahindra CIE, IndusInd Bank, HDFC AMC, Nesco Ltd, V Guard Industries, and Reliance Industries.

1. Kajaria Ceramics Limited

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

The stock last traded at Rs 1,131.70/share. The brokerage has assigned a buy on the stock with a target price of Rs 1,340/share. With the given target price, it would give a return of up to 19%. It has given a maximum 118.32% returns in 3 years. 

Key risks: Gas price volatility, demand moderation.

2. Sterlite Technologies Limited

Sterlite Technologies (STL) is a leading telecommunication infrastructure player with offerings in optical fibre and cables, hyper-scale network design, and deployment and network software.

The current market price of the stock on NSE is Rs 173.05/share. The brokerage has assigned a target price of Rs 220/share on the stock. It claims a potential upside of 28% from its current level. It has given the highest returns in 3 years around 51.8%. 

Key risks: Volatility in margin, continued leverage

3. Maruti Suzuki India Limited

Maruti Suzuki (MSIL) is the market leader in the Indian passenger vehicle space, commanding ~43% market share as of FY22.

The brokerage has assigned a target price of Rs 11,200/share for the stock. If you buy the stock at the current market price, it could fetch a gains in up to 33%. The stock last traded at Rs 8,421.05/share on NSE. It has given maximum 15.4% returns in 1 year.

Key risks: Covid led slowdown in demand, adverse currency move i.e. unexpected appreciation of Yen vs. Rupee.

4. Mahindra CIE Automotive Limited

Mahindra CIE (MCI) is part of the Spain-based CIE Automotive Group. It is a multi-technology, multi-product automotive component supplier.

ICICI Direct assigns buy on the stock with a target price of Rs 410/share. The stock is likely to fetch gains up to 22% considering you buy the stock at the current market price. The current market price of the stock on NSE is Rs 337.70/share. It has given a maximum 103.43% returns in the 3 years.

Key risks: Slowdown in global economy and slower than anticipated margin recovery profile.

5. IndusInd Bank

IndusInd Bank is a Hinduja group promoted newer age private sector bank and is fifth largest private bank in India.

Brokerage recommended 'buy' the stock for a target price of Rs 1,387/share. Considering this estimated target price, the stock is likely to give 20%. The current market price of the stock is Rs 1,214.15/share. Over the past 1 year, the stock has given maximum 42.4% positive return.

Key risks : Slower pace of liabilities accretion could impact NIM; moderation in earnings momentum led by elevated opex.

6. HDFC Asset Management Company Limited (HDFC AMC)

HDFC AMC is among the largest and profitable mutual funds with a QAAUM of ~₹ 4.2 lakh crore as on September 2022. Market share as on Q2FY23 was at ~11%.

The brokerage assigns a target price of Rs 2,600/share to the stock. It claims a potential upside of 21% from its current level. The current market price of the stock is Rs 2,154.40/share on NSE. The stock has given maximum returns in 3 month around 15.85%. 

Key Risks : Elevated redemption in non-SIP AUM and increase in competitive intensity impacting yields.

7. Nesco Ltd

Nesco Ltd (Nesco) is in the business of development and management of commercial/IT-ITeS real estate, exhibition centre and foods business.

The brokerage recommends "Buy" the stock with an estimated target price of Rs 800/share. Considering the current market price and the target price, the stock could fetch a return up 33%. The stock last traded at Rs 604.40/share on NSE. The stock has maximum 13.86% returns in 5 years. 

Key Risks: a) Any further Covid wave; b) Any exit and failure to release in commercial business

8. V Guard Industries Limited

V-Guard is a well-known FMEG brand in the electrical and electronics space especially in South India, with a presence of over four decades.

The brokerage rated "buy" to the stock with a target price of Rs 310/share. According to the brokerage, with the given target price, it could fetch a return of up to 17%. On the NSE, the stock last traded at Rs 265.35/share. It has given maximum 25.17% positive returns in 3 years. 

Key Risks: Slow rural demand and reversal in commodity prices may delay margin recovery

9. Reliance Industries Limited

Reliance Retail has been one of the fastest, largest growing retailers in recent times. In FY18 -22 , it recorded a staggering 30 % revenue CAGR with sales worth nearly Rs 2 lakh crore in FY22.

With a buy call on the stock for a target price of Rs 3,050/share, the stock is likely to surge up to 20% from its current level. The Current Market Price (CMP) of the stock is Rs 2544.45/share on NSE. It has given maximum 175.31% positive returns in the last 5 years.

Key Risks : Lower discretionary spends owing to higher inflation can subdue sales, lower-than-expected refining margins.

Stocks, CMP, Target Price, Upside

Stocks	CMP (Rs)	Target Price (Rs)	Upside (%)
Kajaria Ceramics	1131.7	1340	19
Sterlite Technologies	173.05	220	28
Maruti Suzuki	8421.05	11200	33
Mahindra CIE	337.7	410	22
IndusInd Bank	1214.15	1450	20
HDFC AMC	2154.4	2600	21
Nesco Ltd	604.4	800	33
V Guard Industries	265.35	310	17
Reliance Industries	2544.45	3050	20

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 consult with certified experts before making any investment decision.