2 Midcap Stocks To Buy That Could Hold Good Potential In 2023
Markets are likely to end the year 2022 on a good note and in fact at near
As we head into 2023, here are a few stocks that could be
worth buying from the midcap space, according to brokerage firms.
Buy Havells, says ICICI Securities
ICICI Securities has a buy call on Havells India for good returns.
"As Havells has covered 3,000 towns with populations between 10k-50k, it is now planning to expand its distribution network in towns with populations of 50 Utsav outlets as pilot in FY22 and plans to add another 1,000 outlets in FY23.
While Crabtree brand caters to designer and high-end consumers, and Havells and Standard brands to the mass-premium segment, we believe the company is focusing more on REO brand in smaller cities and rural markets.
Havells: Price target of Rs 1150
"We model Havells to report a PAT CAGR of 21.4% and RoE to be upward of
17%, over FY22-FY24E.
We remain positive on the company's business model
due to strong moats and growth opportunities.
Maintain BUY with a DCFbased
target price of Rs 1,550 (implied P/E 55x FY24E)," the brokerage has said.
Buy CreditAccess Grameen
Monarch Networth Capital has a buy on the stock of Buy CreditAccess Grameen with a price target of Rs 1,315.
"Management has guided for credit costs of 2% at the upper end for FY23, while we have built in 2.5% on a conservative basis.
For FY24E, we have factored in credit cost at 1.8%.
Valuations and ratings for CreditAccess Grameen
"With the recent correction in the stock price, CREDAG trades at attractive valuations of 2.5x/2.1x FY24/25 P/BV.
Given its ability to deliver high teens RoE, we believe current valuations provide decent entry point from a risk/reward perspective.
We expect premium valuations to sustain and maintain our target P/BV multiple of 3.3x its Sept'24 BV of Rs.399 and retain our target price of Rs1,315.
By Sunil Fernandes Goodreturns