February stock ideas: ICICI Bank, Praj Industries among top 10 stocks that can rally up to 59%

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    Top Monthly Picks
    1/11

    Top Monthly Picks

    Brokerage Axis Securities has come up with select stocks that can rally up to 59% for the month of February. The stock basket includes picks from various market cap segments but delivered a flattish return in the month of January. Since its inception, Axis Securities' top picks have delivered an impressive return of 148%.

    Here are their top stocks to buy in February.

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    ICICI Bank
    2/11

    ICICI Bank

    ICICI Bank from the largecap segment has the potential to rally up to 36% with a target price of Rs 1,150. Axis Securities said the bank has been outperforming its peers and has ticked most boxes on growth, margins, and asset quality in the third quarter. Higher loan growth, improving operating profits, and a strong provision buffer coupled with a strong deposit franchise will help the bank achieve ROAE/ROAA expansion over FY23-25E. The current market price is Rs 848.

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    Maruti Suzuki
    3/11

    Maruti Suzuki

    The company expects to outpace the industry growth rate with good order booking for newly launched Jimy and Fronx. Strong order book, higher share of premium SUVs in the sales mix will drive the revenue/EBITDA/PAT growth in FY23-25. The brokerage has a target price of Rs 9,760, representing an upside of 11%. The current market price is Rs 8,769.

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    State Bank of India
    4/11

    State Bank of India

    Among PSU banks, SBI remains the best play on the gradual recovery of the Indian economy on account of its healthy PCR, robust capitalization, strong liability franchise, and improved asset quality outlook. Axis Securities believes normalisation in credit costs and improved growth outlook should lead to double-digit ROEs of 16.5% over FY23-25E. The stock has a target price of Rs 740, presenting an upside of 40%. The current market price is Rs 527.

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    Infosys
    5/11

    Infosys

    The management has guided double-digit growth in FY23 in the backdrop of robust deal wins. Additionally, higher offshoring, better utilization, and lower attrition are likely to expand the company’s operating margin moving forward. The company has a target price of Rs 1,800 per share, implying an upside of 16% from the current market price of Rs 1,551.

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    Tech Mahindra
    6/11

    Tech Mahindra

    Axis Securities says Tech Mahindra has a superior services mix and multiple long-term contracts that are well-spread across the verticals, reducing its dependency on any one vertical. The brokerage has assigned a 12x P/E multiple to the company’s FY25E earnings to arrive at a target price of Rs 1,200. This implies an upside of 17% from the CMP of 1,024.

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    Polycab India
    7/11

    Polycab India

    In the mid-cap segment, Polycab continues to maintain its leadership position in the organized C&W market with a share of over 24%. The management has set a revenue target of Rs 20,000 crore by FY26, led by faster and more profitable growth in the B2C segments and industry-leading growth in the B2C business. The brokerage has a target price of Rs 3,300, representing an upside of 10% from the CMP of Rs 2,995.

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    Federal Bank
    8/11

    Federal Bank

    Another midcap stock Federal Bank is among the top picks of Axis Securities for February. Key positives for the lender are increasing retail focus, strong fee income, adequate capitalization, and prudent provisioning. The Bank remains well-poised to deliver a strong RoA/RoE of 1.2%/14-15% over FY24-25E. The brokerage has given a target price of Rs 170, implying an upside of 29%. CMP is Rs 131.

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    Varun Beverages
    9/11

    Varun Beverages

    Varun Beverages has been assigned a target price of Rs 1,450, with a potential upside of 24% from the current market price of Rs 1,173. The rationale being VBL could emerge as a winner in the long term due to the aggressive placement of visi-coolers in acquired territories of South & West and underpenetrated East India, consolidating existing distributors and increasing distribution in underpenetrated regions, according to the brokerage.

    Reuters
    HealthCare Global Enterprises
    10/11

    HealthCare Global Enterprises

    In the smallcap segment, Axis Securities picked HealthCare Global Enterprises which has the potential to rally up to 17% with a target price of Rs 330. The current market price is Rs 282. The brokerage expects HCG to turn around its operating profitability with operating EBITDA margins improving by 680 basis points over FY21-FY24E.


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    Praj Industries
    11/11

    Praj Industries

    Axis Securities believes Praj Industries in the smallcap segment has the potential upside of 59% from the current share price levels of Rs 345. The target price is set at Rs 550. "The company's key growth levers remain strong. Bioenergy in domestic business, the overall demand-supply gap of Ethanol, increased interest in grain-based distilleries and decarbonization impetus is auguring well for Praj," the brokerage 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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