Make Your Portfolio Strong: In the downfall of the stock market, it is becoming difficult to find such quality stocks, which can give better returns in the future. However, in the meantime, keeping in view the strong outlook and earnings visibility, the veteran brokerage house has improved the rating of some stocks and has also increased their target price. If you are looking for the best stocks for your portfolio, then you can keep an eye on them. These include big stocks like RIL, ITC, ICICI Bank and HCL Tech.
RIL
Brokerage house JP Morgan has rated neutral to overweight on the stock of RIL. A target of Rs 3170 has been given for the share. At the same time, Morgan Stanley has also increased the target to Rs 3253. JP Morgan has increased the target due to better refining environment and strong earnings revision cycle. Earlier the brokerage had set a target of Rs 2575 for the stock. At the same time, Morgan Stanley expects that the company’s profits will be better and it can show its best performance in 20 years. Refining margin is at 2 times mid cycle.
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ICICI Bank
Brokerage house Jefferies has increased the target price while recommending investment in ICICI Bank. The brokerage has increased the target for the stock from Rs 830 to Rs 900. Post Kovid 19 recovery has been better in the banking sector. There has been a rapid improvement in asset quality. The stock is at an attractive valuation in the recent correction.
Star Health
Brokerage house Motilal Oswal has a Nivea advice in the stock of Star Health and has increased the target price from Rs 800 to Rs 840. According to the report of the brokerage, there is strong growth in retail health. The claims ratio has become normal, due to which the earnings growth outlook is strong. By FY22-24, the company’s gross premium can grow at a CAGR of 25 percent. At the same time, the claim ratio can be 64 percent with a combined ratio of 92 percent. The brokerage house has increased the earnings estimates for FY23/FY24 to 6.6 per cent and 5.5 per cent respectively.
ITC
Brokerage house Motilal Oswal, while improving the rating of ITC, has now advised to invest in it. A target of Rs 335 has been given for the share. According to the brokerage, there is a better demand recovery in the cigarette business than expected. In the mid-term, revenue visibility is showing improvement with cigarette volumes. Due to this, the margin outlook looks strong. There is a healthy sales momentum in the FMCG business. ITC has a strong FMCG product portfolio. Recovery is also being seen in the hotel business. ITC’s earnings growth for FY22-24 is likely to be 15% CAGR.
HCL Tech
Brokerage house CLSA has given investment advice in the stock of HCL Tech. The target for the stock has been increased from Rs 1180 to Rs 1320. Right now the share is around Rs 987. Kanvani’s deal pipeline is strong. The benefit of digitization and clouding will also be available. The customer base is strong and the growth guidance is also good going forward.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
