ICICI Bank, ITC, UTI AMC among 9 stocks to buy from BFSI, FMCG and Infra space for return of up to 90% in 12 months

As stock markets continue to remain volatile in the view of ongoing war between Ukraine and Russia, Centrum Broking has identified 9 stocks to buy from Banking, financial services and insurance (BFSI), Fast-moving consumer goods (FMCG) and Infrastructure sectors. Top four trading ideas from BFSI space are ICICI Bank, LIC Housing Finance, UTI AMC and Care Ratings, while ITC and Titan were shortlisted in FMCG space and KNR Constructions (KNR), Container Corporation of India and Adani Ports & SEZ (APSEZ) were shortlisted by the brokerage from infrastructure space. As per target price set by the brokerage, the maximum upside of nearly 93% comes out in UTI AMC on its previous closing price on the BSE  

1. BFSI  

ICICI Bank: TP: Rs940  

Centrum Broking sees a target price of Rs 940 share in the private lender bank in one year, which turns out to be an upside 29% on Friday's closing of Rs 730.45 per share on the BSE.  

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Investment rationale: Asset quality has been on the mend since FY18 with total stress consistently declining. As we are staring at a near-term spike in inflation, ICICI Bank might be well insulated as credit growth has bounced back sharply for ICICI Bank over the last 4 quarters with all segments seeing better credit flow in Q3FY22. 

LIC Housing: TP: Rs575  

At target price of Rs 575 per share, the brokerage sees an upside of 41 % on the public sector housing finance company on Friday's closing of Rs 339.20.  

Investment rationale: Most of the stress has already been recognized and Q3FY22 earnings quality was superior as coverage on stage 1&2 improved while OTR pool was stable QoQ. Impact of daily NPA tagging was 1% which was adequately provided for. 

UTI AMC: TP: Rs1420  

The brokerage sees this stock from other financial services sector trading at Rs 1420 in one year. It is an upside of 93% on Friday's closing price of Rs 733.80 apiece on the BSE.  

Investment rationale: While Q3FY22 saw a pressure on equity yields due to gross flows coming in at lower yields with redemption being higher. Some schemes also merged attracting lower yields. Outlook for yields is better which may mean revert in the next quarter. 

CARE Ratings: TP: Rs700 

CARE Ratings can hit a target price of Rs 700 a share in 12 months as per Centrum Broking. This translates into an upside of 30% on Friday's closing price of Rs 536.05 a share on the BSE.  

Investment rationale: With the economic bounce back in sight, the capex cycle could revive leading to strong systemic credit growth. In times of high inflation, CARE could be a hedge as it runs a ratings heavy business which is largely driven by nominal credit growth. Hence BLR, corporate bond and CP issuances 

2. FMCG 

ITC (ITC): TP: Rs 341 

As per Centrum Broking, in the next 12 months, the FMCG giant can hit a target price of Rs 341 a share, an upside of 59% on Friday's BSE closing price of Rs 214.05 a share.  

Investment rationale: With fading effect of Covid we expect recovery in demand for OOH consumption, Hotels, Paper board, yet agri export remains more opportunist for the company. 

Titan (TITAN): TP: Rs2,898 

The brokerage believes that Rakesh Jhunjhunwala favorite share, which closed at Rs 2467.90 a share on the BSE on Friday, can see a jump of around 17% in one year.  

Investment rationale: Turnaround in eyewear and Caratlane, cost savings to drive margin expansion.  Titan growth strategy revolves around store expansion and focus on the wedding segment, driving market share gains. Omni-channel efforts make it even better placed in the industry. 

3. Infrastructure 

KNR Constructions (KNR): TP: Rs 375 

This stock from construction and engineering space can gain up to nearly 20% in 12 months at Friday's closing price of Rs 313.75 a share.  

Investment rationale: Growth commitments are well supported by operating cashflows of Rs12.2bn over FY22-24; monetization of 3 HAM assets to release capital of Rs4.5bn 

Container Corporation of India (Concor): Buy – Price: Rs593; TP: Rs737 

The shares of this company dealing with transport and logistics can see an upside of 26% on its previous closing of Rs 539 on the BSE.  

Investment rationale: DFC to improve reliability of rail freight transport and help IR gain market share in EXIM cargo; domestic volumes also strengthening. Stronger growth and improved asset utilization to aid rebound in ROE 

Adani Ports & SEZ (APSEZ): TP: Rs920 

Adani Ports & SEZ can surge more than 30 % from its previous closing of Rs 695 a share, as per target price of 920 set by Centrum Broking for this share.  

Investment rationale: Ports as a business has pricing power and stable margins given locational advantages. Port handling costs are a fraction of overall logistics costs. About 55-60% of the cost structure is fixed. Dependency on raw materials is not there and on fuel is very marginal. 

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)