ICICI Bank among 6 top investment ideas for this month – Top Picks

By Dustin Moskovitz On Nov 6, 2022

ICICI Bank among 6 top investment ideas for this month – Top Picks | The Economic Times

05 Nov 2022, 10:59 AM IST

In the month of October, while Nifty clocked over 5% gains, it underperformed global indices. While markets are expected to remain volatile given the US Fed’s monetary tightening action, here are the top investment ideas suggested by brokerage firm Kotak Securities for November month.

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For the lender, the brokerage has suggested a target price of Rs 1070, suggesting an upside potential of 18%.

The brokerage is bullish given the bank’s solid 40% year-on-year (YoY) earnings growth in the September quarter, 18% operating profit growth, slippages of less than 2% and near negligible credit cost. “Every passing quarter is giving greater comfort to investors,” added the brokerage.

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On the electrical company, the brokerage has maintained an ‘add’ rating for a target price of Rs 415. From the previous session’s closing of Rs 363, the given target price suggests an upside potential of over 14%. The company’s Q2 earnings had been soft and also the company has acknowledged the uncertainty with regard to demand recovery. The brokerage expects earnings per share (EPS) to grow by 40.2% in FY24E and by 21.7% in FY25E.

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On the IT major, the brokerage’s target price of Rs 1250 per share suggests a potential upside of 20%. The company posted strong all-round performance in Q2. The brokerage expects earnings to grow by 7% in FY23E and 11.6% in FY24E and also raised FY23-25 c/c revenue estimates by 30-80 bps, and EPS by 2-3%.

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For the pharma company, the brokerage suggested the target price of Rs 4875, which signals an upside potential of 8%. “gRevlimid drove big beat in Q2FY23; ex-gRevlimid performance was a mixed bag,” noted the brokerage. Kotak Securities reiterates FY23/24E US growth, excluding gRevlimid, remains a challenge. The underlying growth outlook remains healthy in most ex-US segments. Also, the brokerage has raised FY23-25 earnings estimates by 8-11%.

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On the Adani Group company, the brokerage has suggested a target price of Rs 900, which implies possible gains of up to 9%.

The brokerage said the company surprised the Street with the pace of new asset addition in the private sector. Further, it is of the view that the enabling conditions will help the company replicate the similar performance in the government sector too. Kotak Securities expects the earnings to grow by 20.5% in FY24E & by 29.9 % in FY25E.

IANS

For the heavy engineering company, the brokerage has given a buy call with a target price of Rs 500. This means gains of up to 18%. The brokerage said strong execution led to revenue beat, while volatile commodity prices impacted margins. Margins in the second half are expected to improve. Also, the order intake at the company is strong at Rs 981 crore.

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

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