Top picks! ITC, Ashok Leyland among 10 large & midcap stocks that can rally up to 23%
, ETMarkets.com|
Axis Securities believes that the Indian economy stands at a sweet spot of growth and remains the land of stability against the backdrop of a volatile global economy. It also believes that the current setup is a ‘Buy on Dips’ market. Here's a list of 10 large & midcap stocks that can rally up to 23%, according to Axis Securities:
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"The bank has been outperforming its peers and has been firing on all cylinders. ICICIB has ticked most boxes on growth, margins, and asset quality. We continue to like ICICIB for its strong retail-focused liability franchise, buoyant growth prospects, stable asset quality along with healthy provision cover, adequate capitalization, and potential to deliver robust return ratios," it said.
ETMarkets.com
"The company expects to outpace the industry growth rate led by good order book and new launches (Jimy and Fronx). Strong order book, higher share of premium SUVs, CNG vehicles in the sales mix to improve ASP in FY24/25; further, improved chip suppliesand stable commodity prices to drive the EBITDA growth (higher than earlier estimates) in FY24/25," Axis Securities said.
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"Healthy advances growth supported by demand sustenance, steady margins, improving fee income profile, improving asset quality (which is keeping credit costs muted), strong deposit franchise with healthy CASA Ratio, and adequate capital is key positives for the bank. We expect SBIN to report healthy advances/NII/PAT growth of 13/13/12% CAGR over FY23-25E," it said.
Agencies
"We believe VBL is well-placed under the current market situation as a strong summer season is expected to drive overall beverage sales across regions. Furthermore, the initial report on possible El-Nino (deficit rainfall) could delay the rural recovery which would lead the entire FMCG pack (ex-ITC) under wait-and-watch mode. Hence, in this current volatile market situation, we believe VBL provides better earning visibility than other FMCG peers in the near term," it said.
AP
"We expect overall cigarette volume growth to remain stable. At the industry level, the cigarette volumes have surpassed the pre-Covid levels and ITC is gaining lost market share from its peers. Moreover, the government's stance on stable taxation and crackdown on the illicit cigarette players has been icing on the cake, especially for the ITC which has been grappling with this issue for the last few years," it said.
ETMarkets.com
"We believe the company is well-positioned to grow its revenue and profitability moving forward, supported by increasing cement demand in its key markets in both trade and non-trade segments, cost optimization measures, and increasing premium cement sales aided by capacity expansions," it said.
ETMarkets.com
"Polycab has maintained the leadership position in the organized C&W segment with a market share of 24%+. With a strong distribution network and a strong brand recall, the company continues to gain market share in Wires & Cables and FMEG segments," it said.
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"Federal Bank's key strengths continue to be sustained credit growth, strong liability franchise, improving fee income with the bank looking to deepen the relationship with corporates to improve client wallet share, improving cost ratios, and benign credit costs backed by robust asset quality metrics, " the brokerage firm said.
Agencies
"Ashok Leyland remains well-positioned to benefit from the CV upcycle. On the back of these growth drivers, we forecast Revenue/EBITDA/PAT CAGR of 15%/23%/40% over FY23-25E," it said.
ETMarkets.com
"In Q4FY23, demand for Relaxo was strong on account of price cuts. Furthermore, summer being the peak season for open footwear (~75% of sales) Relaxo is likely to benefit from the same," it said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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