Top stock picks for 2023: RIL and Maruti among 9 stock ideas from … – Economic Times
The brokerage firm believes domestic sectors like retail, real estate, and auto ancillaries (domestic focused) will also provide good opportunities for the medium to long term.
“Kajaria with a net cash balance sheet and superior brand is a solid play on the tiles sector with expanding reach to tier II and III cities. We have a buy with a target price of Rs 1340/share,” it said.
“STL is uniquely positioned to benefit from 5G/FTTH deployment cycle both domestically and globally. We believe that with renewed focus on ramping down/exiting loss-making segment and focusing on improving services segment profitability, STL will likely see improvement earnings momentum ahead,” it said.
“MSIL is well placed to play upon the underpenetrated PV segment domestically. We build 16.6% volume CAGR, 24.7% revenue CAGR and 67.6% PAT CAGR for MSIL over FY22-24E. On the b/s front, MSIL is net debt free with surplus cash amounting to Rs 42,000 crore (FY22). It is capital efficient with RoIC>25%. At CMP, MSIL trades at ~24x P/E on FY25E EPS,” it said.
“Going forward, at MCI, we build 14.7% sales CAGR over CY21-24E along with an uptick in margins to 12.8% by CY24E. At the current market price, it trades at 13x P/E on CY24E EPS with RoCE inching towards the 14% mark,” it said
“Continued investment in physical & digital capabilities to aid healthy business growth while gradual improvement in efficiency to aid earnings. We expect robust growth in earnings at Rs 9652 crore and RoE at ~15% in FY25E, though, focus on distribution capabilities and tech spends to keep opex elevated in the near term. At the CMP, the bank is trading at 1.4x FY25E ABV,” it said.
“Tech investments, business promotion activities, new launches to keep opex elevated in the near term but should reflect in business growth. Likely improvement in market share on the back of healthy scheme performance and superior earnings trajectory makes us positive on the stock. At the CMP, the stock is trading at ~26.7x FY25E EPS,” it said.
“Post a washout 2.5 years for the exhibition business, we expect H2FY23 to witness full recovery to pre-Covid levels in the exhibition business. The IT Park business is also expected to be boosted as occupancies have improved and further improvement over next couple of quarters,” it said.
“PAT is likely to grow at a CAGR of 18% over FY22-25E. V-Guard is likely to have a debt burden on its books in the near term but we believe the same would start easing from FY25 onwards supported by its strong operating cash flow and no major capex over the next two years,” it said.
(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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