With Russia’s invasion of Ukraine, prices of oil, natural gas and some metals soared as Russia is one of the major exporters. Apart from this, equity markets are volatile and there are concerns about economic growth.
“The stabilisation of crude or relatively milder sanctions, in our view, will be the key driver for global equities recovery in the short term,” ICICI Direct said.
ICICI Securities has suggested these 8 stocks to buy and hold for the next three months as it continues to see this correction as an opportunity for investors to add companies with sustainable growth visibility:
| Company | CMP (₹) | Target Price (₹) | Upside (%) |
| Ambuja Cements | 292.15 | 348 | 19.12% |
| SBI | 462.45 | 545 | 17.85% |
| Balkrishna Industries Limited | 1767.35 | 2010 | 13.73% |
| Aditya Birla Fashion and Retail Limited | 261.85 | 305 | 16.48% |
| Grindwell Norton Limited | 1628.00 | 1800 | 10.56% |
| Indian Energy Exchange Limited | 210.55 | 232 | 10.19% |
| Balarampur Chini Mills Limited | 420.00 | 445 | 5.95% |
| Mindtree Limited | 3889.00 | 4148 | 6.66% |
Ambuja Cements
Ambuja Cements is a massive player in the Cement Industry in India. They possess a capacity of 31.5 MT. The company plans to reach a capacity of 50 MT through expansion in the western region along with significant De-bottlenecking.
SBI
SBI is a public sector bank and also the largest bank in India, with a balance sheet size of ₹48 lakh crores. It has a strong liability franchisee with trendsetting abilities. In terms of rates it also has operating metrics in the PSU space. In the most recent quarter, the company has showcased a strong performance in the asset quality front as the GNPA ratio for the bank declined 40 BPS. To add to this the net NPAs were down 18 BPS. The bank as a whole looks positive and has a healthy pipeline to aid business growth.
Balakrishna Industries
Balakrishna Industries is the leader in the niche off-highway tyres segment in the export space that are used in agriculture, mining and other similar activities. Europe and the USA form a combined 71% of sales, whilst India constitutes 18%. The company stands apart from the competition in areas of capital efficiency and strong net debt i.e. 0 net debt.
Aditya Birla Fashion and Retail Limited
Madura and Pantaloons, their leading power brands contribute 60% and 40% of revenue respectively and are aggressively adding stores to the portfolio. In addition, the infusion of equity and strong cash flow have strengthened their balance sheet. It is foraying into the D2C business and plans to become a US $2.8 Billion entity by FY26.
Grindwell Norton Limited
GNL is the market leader in India’s abrasive market with a share of 26%. Ceramics, plastic and IT services contribute 33% and 10% respectively. GNL has seen strong growth in free cash flows over the last decade and has maintained margin ratios >16%. The EBITDA is expected to grow at a CAGR of 18.3% over FY 21-24.
Indian Energy Exchange Limited
The IEX holds a 95% share in the power exchange market of India. Further, reopening of trading of power exchanges in the forward and derivatives market is going to benefit the stock. With zero debt and high cash worth of ₹700 crores, the company is focusing on adding new products to its portfolio.
Balarampur Chini Mills Limited
BCML, the second largest sugar company in the country, is in the process to undertake a distillery Capex of 490 KLD which will increase the ethanol volumes by 2.2x to 35 crore litres by FY24. Their sales are expected to witness a growth of 33.6% CAGR and the revenue at 7% CAGR over FY21-24. It will also reduce the codependency on Co-0238.
Mindtree Limited
Mindtree is a global name and an L&T group company. They deal in the craft of technology consulting services. They enable enterprises across the globe to drive superior competitive advantage. The company has adopted a three-pronged approach to accelerate growth in its core portfolio. The company is confident of maintaining EBITDA Margins at 20% and are looking to invest to increase capabilities.
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