3 Stocks From HDFC & ICICI Group That You Can Buy For Upto 41% Upside

Broking firm Emkay Global has come up with a series of reports, including "buy" calls for stocks from the ICICI and HDFC Group. Here are ICICI and HDFC Group stocks that you can buy.

Buy ICICI BANK stock for 41% upside: Emkay

ICICI Bank remains Emkay's top pick in the banking space, given its superior financial performance, top-management stability/credibility and strong capital/provision buffers. "We retain BUY with a target price of Rs1,250/ per share, valuing the bank at 2.9x Mar-25E and subsidiaries' value at Rs170 pershare," Emkay Global has said in its report.

According to the brokerage the key risks for the stock are slow macro/consumption hampering the bank's growth and asset quality.

Buy HDFC Bank stock for 22% upside: Emkay

On HDFC Bank, Emkay Global has set a price target of Rs 2050, which is about a 22% upside from current levels. "We believe the special dispensation on PSL and insurance subsidiaries' stake is certainly positive for the bank, while grandfathering of liabilities too should be allowed once bank crystalizes the liability around the merger date and re-approaches for the clarity on the same.

Post RBI's clarification and regulatory concerns around the merger's structure should ease and focus should shift to liability/margin management, where we believe the bank has a healthy track record. Post-merger, the in-house mortgage business will help the bank to accelerate growth and deliver higher RoEs, once the regulatory drag is behind. We retain BUY with a target price of Rs 2,050 per share," the brokerage has said.

Buy HDFC Life stock for a target price of Rs 650: Emkay

On HDFC Life, Emkay Global has set a price target of Rs 650. "To reflect the impact of the new synergistic HDFC Bank-HDFC Life relationship, we change our FY24-25 estimates and upgrade the stock to BUY, with our Mar-24E revised target price of Rs 650 per share (implied FY24E P/EV of 2.9x). The relatively clearer outlook for HDFC LIFE - at a time when listed peers are facing certain specific challenges of their own - implies that HDFC LIFE's premium valuation versus peers would sustain, in our view. HDFC LIFE is our top pick in the sector," the brokerage has said.

Disclaimer

The stocks have been picked from the brokerage report of Emkay Global. Greynium Information Technologies, the brokerage firm and the author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision. We have not done any analysis and this is not our "buy" recommendations.