Stocks to buy: 2 stocks in which ICICI Securities sees an upside of up to 30% 

Indian benchmark indices opened in the green on Thursday. However, it slipped into the red as bank, pharma and FMCG indices fell. The BSE Sensex was at 59730 levels, down 0.62%, while the NSE Nifty 50 was at 17790 levels, down 0.60%. Here are two stocks that brokerages have recommended for an upside of up to 30%:

Jindal Steel and Power

ICICI Securities (NS: ICCI ) has maintained a buy rating on the stock with a target price of ₹ 750.00 apiece. This translates to an upside of 24.51% as compared to its share price of ₹ 602.35 apiece at 12:42 PM on Thursday.

Jindal Steel and Power is a leading steel producer in India with a significant presence in sectors like mining and power generation. In addition, it has a global presence through its subsidiaries, mainly in Australia, Indonesia, Mauritius, Namibia, South Africa, and more.

The brokerage said that Jindal Steel and Power has been a top performer amongst mainstream ferrous players with a robust return of 45% in the past three months. It envisages further upside in the stock, driven by cost efficiencies as captive coal mines ramp up, logistic advantages from its new conveyor belt and slurry pipeline and upcoming capacity at Angul, which is expected to result in a volume CAGR of 11% through FY25E. In addition, the company has acquired Monnet Power Company’s assets, which is likely to reduce the costs further.

It said that the key risks involved are further compression spreads, sustained losses at overseas subsidiaries and a delay in the commissioning of the new capacity at Angul.

Nuvoco Vistas (NS: NUVO ) Corporation

ICICI Securities has maintained a buy rating on the shares of the company with a target price of ₹ 490. This translates to an upside of 29.23% as compared to its share price of ₹ 379.15 apiece at 12:55 PM on Thursday.

Nuvoco Vista Corporation is one of the largest cement companies and concrete manufacturers in India. It offers a diversified range of products such as cement, Ready-mix Concrete (RMX), and modern building materials i.e. adhesives, wall putty, dry plaster, cover blocks, and more.

The brokerage after its interaction with the management of the company for an update on their business strategy and outlook said that the company plans to consolidate its position as India’s fifth-largest cement company and reach 25 mtpa capacity by FY25. Further, its sales volume is improving through better capacity utilisation and optimising internal levers to be a more cost-efficient cement producer.

ICICI Securities believes that the company is well placed to capture high volumes as the demand in East India is expected to outpace the industry demand for a couple of years. A

robust demand shall pave way for better pricing in operating markets and consequently higher unit profitability. It said that the key risks are lower prices and cost escalation.

Written by Simran Bafna

The post Stocks to buy: 2 stocks in which ICICI Securities sees an upside of up to 30% appeared first on Trade Brains.

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