ITC among 6 top stocks to buy ahead of Union Budget 2023

The brokerage firm LKP Securities has a buy call on Power Finance Corporation with a target price of Rs 167, which signals an upside potential of 10% from the current market prices.

"The resolution of legacy portfolios coupled with encouraging asset quality trends make us optimistic about Power Finance Corporation. Enforcement of discipline in the power sector through calibrated penalties on defaults by discoms together with the incentivized clearing of old overdue are in our view positive tailwinds for PFC going forward," it said.

LKP Securities has a buy recommendation on Tata Power with a target price of Rs 270, implying an upside potential of 30% from the current market prices.

"Its de-leveraging & strategic roadmap on the renewables business should in our view bolster the prospects going forward. Capital allocation towards high growth areas of Renewables, Solar Roof-Tops, Solar Water Pumps, and EV charging stations provides a structural growth story," the brokerage said.

LKP Securities has a buy rating on ITC with a target price of Rs 385, indicating an upside potential of 15% from the current market prices.

"ITC is a diversified conglomerate that is seeing strong traction in all its business verticals thereby making the 25% ROE business an attractive proposition. We envisage a moderate tax scenario for Cigarettes and the improving margin profile across its business verticals resulting in robust free cash generation thereby enhancing prospects of a de-merger going forward," it said.

Brokerage firm LKP Securities has a buy call on NTPC with a target price of Rs 200, implying an upside potential of 18% from the current market prices.

"Its low cost of funds and aspirations in growing its RE portfolio would in our view improve its ESG score and boost investor confidence. NTPC with a 25% market share is set to transform itself from conventional energy into an ESG accretive energy company and its recent collaboration with Energy Vault is aimed at accelerating its energy transition goals," the brokerage said.

Brokerage firm LKP Securities has a buy rating on Siemens with a target price of Rs 3,400, implying an upside potential of 11% from the current market prices.

"We pick Siemens to play the upcoming railway capex theme on electrification & signaling. Its strong order pipeline in railways, metros, airports, and infrastructure projects provides clear visibility going forward given its undisputed leadership in technology. The traction was seen across energy, mobility, and smart infrastructure in our view positioning Siemens at the forefront," it said.

LKP Securities has a buy call on Chambal Fertilisers and Chemicals with a target price of Rs 360, indicating an upside potential of 18% from the current market prices.

"The stock price of Chambal has corrected substantially on account of higher subsidies from the GOI which together with the rupee depreciation and the Russia-Ukraine conflict put pressure on its working capital and leverage position. Given the assurance from the Finance Ministry regarding payment of subsidies and the strong positioning of Chambal in both Urea & NPK, we pick Chambal to play the agri theme ahead of the Union Budget," the brokerage said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)