Diwali 2023 Picks - Here Are Six Large Cap And Eight Mid, Small Cap Stocks For Samvat 2080 By Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.ICICI Bank Ltd. (Market cap: $76.7 Billion; Current market price: Rs 915; Target price: Rs 1,298; Upside potential: 42%; Rating: Buy)A large asset base of Rs 17.2 trillion and a network of 6248 branches has helped generate not only asset growth for ICICI Bank, but also aided it in building a fee income profile. In the past few years, the bank has focused on granulising its asset and liability profile, the benefits of which are visible in its financials now, with its return on asset reaching a historic high of 2.4% in H1 FY24 (from a low of 0.4% in FY19). The share of retail advances stands higher at 54.3% and share of low cost current account and savings account is also at healthy level of 40.8%. Of the total retail portfolio, nearly half is towards housing loans, which are secured in nature. The bank’s Q2 FY24 credit growth stood at 18.3% YoY driven by healthy double-digit growth across all domestic loan segments.We have a ‘Buy’ rating on ICICI Bank with a target price of Rs 1298 (valued at 2.75 times September 2025E adjusted book value plus subsidiary value per share of Rs 180)..Ambuja Cement Ltd. (Market cap: $9.7 billion; Current market price: Rs 407; Target price: Rs 602; Upside potential: 48%; Rating: Buy)Investment rationaleThe management indicated volume growth of 10-15%. FY24.Ambuja can set industry standards by striking a balance between capacity build-up and cost management by capitalising on the ongoing strong demand potential, premium product portfolio, operational excellence, supply chain management and sales and marketing expertise via the parent company. Cost efficiencies and group synergies to capitalise reduce dependence on external sources and increase reliance on captive coal mines and long-term supply agreements to meet its fuel needs more efficiently..Mold-Tek Packaging Ltd. (Market cap: $0.3 billion; Current market price: Rs 891; Target price: Rs 1,200; Upside potential: 35%; Rating: Buy)Mold-Tek Packaging has demonstrated its strength by consistently improving Ebitda/kg through innovation and expansion of the product basket and backward integration. While the existing segments like paints and food and fmcg are expected to continue their strong growth trajectory on the back of capacity additions and order visibility from clients, we see multiple growth levers like the IBM projects and Pharma Packaging business for Mold-Tek Packaging from a medium-term perspective. All future projects are margin and return ratio accretive, with the possibility of improvement in the working capital cycle over the medium to long term. Over FY23-FY26E, we are building in volume CAGR of ~16% and Ebitda CAGR of ~20%. We maintain 'Buy' on Mold-Tek Packaging with a target price of Rs 1,200; valued at 30 times price-to-earning on September-25E earnings..PNC Infratech Ltd. (Market cap: $1.0 billion; Current market price: Rs 324; Target price: Rs 469; Upside potential: 45%; Rating: Buy)During FY18-FY23, PNC Infra's revenue/Ebitda/adjusted profit after tax expanded at a CAGR of 30.5%/23.5%/18%, resulting in consistent accretion and strengthening of the company's reserves and net worth (which grew at a CAGR of 17% during this time). In the highly competitive construction industry, the company's low debt, lean balance sheet, improved operating ratio, and strong return ratios are indicative of its good long-term success..Click on the attachment for full list of Nirmal Bang's Diwali stock picks:.Diwali 2023 Picks - 10 Fundamental Stocks Listed By Motilal Oswal For Samvat 2080; Raymond, SBI And More.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Diwali 2023 Picks - Here Are Six Large Cap And Eight Mid, Small Cap Stocks For Samvat 2080 By Nirmal Bang

We recommended 6 large cap and 8 mid and small cap stocks that investors can look to buy and get returns of up to 48%

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Diwali 2023 Picks - Here Are Six Large Cap And Eight Mid, Small Cap Stocks For Samvat 2080 By Nirmal Bang

We recommended 6 large cap and 8 mid and small cap stocks that investors can look to buy and get returns of up to 48%

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