3 stocks that ICICI Direct suggests buying for long-term investors
Cochin Shipyard is an Indian government owned entity with the largest shipbuilding and maintenance shipyard. Based on its research, ICICI Direct placed a “buy” call on the stock with a price target of 500, which is a good 20% above the current market price of Rs 411.
“Cochin Shipyard continues to be one of the country’s premier shipyards with sufficient capacity, capacity and order book to support it. A newly integrated vision for 2030, facilities to come and a Strong backlog bodes well for the company Chantier Naval de Cochin at Current market price is trading with a return of 11% on FY21 EPS. We turn to FY23 numbers and We are valuing Cochin Shipyard at 9 times FY 23E EPS to arrive at a target price of Rs 500 per share. We are maintaining our PURCHASE rating on Cochin Shipyard stock. “said ICICI Direct. .
ICICI Direct also has a buy rating on Zenstar Technologies stock. The company has set a target price of Rs 345 on the share in 12 months, compared to the current market price of Rs 299. The company will focus on capacity building. in digital engineering, data, artificial intelligence and machine learning.
“The new CEO tackles the challenges of the past and has identified the main areas of intervention for the company. The company’s focus on transaction dynamics, annuity income, increased investment in sales and talent, leadership and acquisition to build capacity bodes well for long-term earnings. , healthy margins encourage us to be positive on the stock. Therefore, we maintain the PURCHASE rating on the stock with a revised target price of Rs 345 (15 times PE on FY23E EPS, previous target price Rs 315), ”the brokerage said.
The brokerage firm also bought the shares of Somany Ceramics, India’s largest ceramic player. The company believes that growth in mid-teens is possible for 2022 and that investments are in place to meet anticipated demand.
“The working capital management and reduction of Somany’s net debt (from Rs 444 crore in FY20 to Rs 173 crore in FY21) were the main positive elements. given the strong pull in demand, improved margins trajectory and balance sheet repair, we are increasing our multiple P / E target to 22x (vs 17x) We are maintaining the BUY rating with a price target revised from Rs 615 per share (previously Rs 500 per hare)
According to ICICI Direct, management expects all factories to be commissioned by the end of fiscal 22 and expects overall revenues to increase by 15% CAGR in fiscal 21 -23 to reach 2,168 crore rupees, ”the brokerage said.
The opinions mentioned here are taken from the ICICI Direct brokerage report. Neither the author, nor the brokerage company, nor Greynium Information Technologies would be responsible for any losses incurred based on the article. Please consult a professional advisor. Investing in the stock market is risky.