Blue Chip companies are large and well-recognized companies with an excellent reputation. They are financially sound and have operated for many years. They have dependable earnings and often pay huge dividends to investors. Brokerages are bullish on these blue chip stocks and they see an upside of up to 27%:
ICICI Bank
The shares of ICICI Bank Limited reached a record high of ₹ 886.60 apiece on Thursday’s early deals. The shares were trading at ₹ 860 levels. The bank has posted a robust performance in the latest quarter, led by a strong PPOP, controlled provisions, and steady asset quality. The bank paid a dividend of ₹5 per equity share on August 10, 2022.
Motilal Oswal Financial Services remains the brokerage’s top stock pick in the banking sector. It has maintained a buy rating on the stock, with a SoTP-based target price of ₹ 1050. This indicates an upside of 19.24% as compared to its current share price of 880.55.
It said that strong asset holding loan growth getting broad-based, and margin is likely to improve, aided by the recent RBI rate hikes and this will improve the ROA and ROE.
Jefferies in a note said that the bank is witnessing a strong recovery across key segments such as Retail, SME, and Business Banking. The lender’s asset quality trends remain steady, while the provision coverage ratio (PCR) remains one of the best in the industry.
It has maintained a buy rating on ICICI Bank’s shares with a target price of ₹ 1,100 apiece. This translates to an upside of 24.92%.
Maruti Suzuki
The company has been launching many new products and has been focusing on exports. Further, it has kickstarted electrification through strong hybrids in FY23 and BEV in FY25 and is leveraging multiple means to meet its objective of reducing CO2 emissions.
Brokerage firm Motilal Oswal Financial Services said in its research report that the company’s management is targeting volumes of 2m units in FY 23 and is confident of regaining its 50% market share in the near future.
The brokerage has maintained a buy rating on the shares with a target price of ₹ 11,300.00. This indicates an upside of 26.23% as compared to its current market price of ₹ 8952.00 apiece.
Written by Simran Bafna
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