ICICI Bank Ltd.| Target Price Rs. 1081| With a robust Capital Adequacy Ratio of 15.9 percent as of September 2023 and a 5-year CAGR of 36.3 percent in profitability, ICICI Bank is well-prepared for substantial expansion of its loan book, stability in asset quality and growth momentum, SBI Securities analysts have said. The stock currently trading at a reasonable P/BV multiple of 2.8x/2.4x of its FY24E/FY25E book value, with potential risks including increased cost of funds, elevated operating expenses, market volatility, and a potential slowdown in credit demand.
2/10
Maruti Suzuki India Ltd. (MSIL)| Target Price Rs 12,000| India's biggest car manufacturer's extensive product portfolio covers a wide range of price segments with six battery electric vehicles planned for release by the end of FY23. The recent successful launches have also helped the SUV class to reach a market share of 23.3 percent. Trading at an attractive valuation with a price-to-earnings multiple of 27.9x/24.1x for FY24-25, MSIL presents a favorable risk-reward profile, as per the broking firm.
3/10
Ultratech Cement Ltd| Target Price Rs 9,800 | The company's strategic expansion plans harmonise effectively with India's growth prospects, positioning it for medium-term advancement, fortified by a streamlined balance sheet and an impressive operating cash flow. SBI Securities analysts said the stock is currently trading at an appealing valuation with a captivating risk-reward ratio, while potential risks encompass a deceleration in cement demand, escalating fuel costs, and plausible delays in capacity additions.
4/10
Polycab India Ltd.| Target Price Rs. 5877 | As per SBI Securities, Polycab is well-positioned for strong growth in FY23-FY25, with projected CAGR figures of 19.8 percent in sales, 23.4 percent in EBITDA, and 23.8 percent in PAT. It is trading at a P/E multiple of 43.9x/37.8x FY24E/FY25E with potential risks such as input cost pressures, a slowdown in consumption, reduced government infrastructure spending, and heightened competitive intensity towards this stock.
Kalyan Jewellers India Ltd.| Target Price Rs. 364| Analysts are bullish on Kalyan's expansion plans targeting non-South India regions with high profit margins and expansion in the Middle East through a franchise store approach that is light on capital. KJIL's strong financial performance is evident through its net Debt/Equity ratio of 0.7x. The stock is valued at a P/E ratio of 46.8x/35.6x FY24E/FY25E, with significant expected growth in Sales, EBITDA, and PAT at Compound Annual Growth Rates (CAGRs) of 25.1 percent, 23.3 percent, and 38.8 percent respectively.
6/10
Titagarh Rail Systems Limited | Target Price Rs 988| The company maintains a substantial order book worth Rs 28,212 crore, with both Freight Rolling Stocks and Passenger Rolling Stocks making significant contributions, said analysts. With a planned capital expenditure of Rs 600 - 700 crore over the next three years, the stock is well-positioned for growth.
7/10
Praj Industries Ltd.| Target Price Rs 633 | The company holds a 70 percent market share in brewery plants in India, which aligns with the anticipated 8.1 percent compound annual growth rate (CAGR) in the Indian beer market. Praj's focus on future fuels, such as 2G ethanol, enhances its potential for growth. Analysts have pointed the key risks to be order inflow delays and government policy changes for this stock trading at a valuation of 33.4x/29.0x FY24E/FY25E.
8/10
Mrs. Bectors Food Specialities Ltd. (MBFSL)| Target Price Rs 1,358| The company is anticipated to demonstrate strong performance, with sales/EBITDA/PAT projected to achieve a CAGR of 17.8 percent/28.4 percent/36.1 percent reaching Rs 1,891.8 crore, Rs 288.6 crore, and Rs 166.9 crore, respectively, by FY25. MBFSL presents an attractive investment opportunity due to its reasonable valuation, trading at a P/E multiple of 47.9x/39.4x for FY24E/FY25E, as per SBI Securities.
Kolte-Patil Developers Ltd| Target Price Rs 570 | The management has projected pre-sales figures of Rs 2,800 crore for FY24 and Rs 3,500 crore for FY25, indicating a Compound Annual Growth Rate (CAGR) of 25 percent between FY23 and FY25. The company's strategic expansion into Pune, Mumbai, and Bangalore helps mitigate the risks associated with geographical concentration.
10/10
Goodluck India Ltd.| Target Price Rs 1,072| SBI Securities is bullish on the stock, saying the company is poised to attain mid-teens growth in revenue over the next three years, with earnings projected to escalate at a faster pace due to enhanced margins and diminished interest expenses as a result of debt repayment. The stock is trading at an attractive valuation with a good risk-reward ratio, albeit accompanied by potential risks such as the volatility of raw material prices and a moderately leveraged balance sheet.
