Mirae Asset Capital Markets, an asset management company, has unveiled its top 10 stock picks for the upcoming quarter. This selection spotlights a diverse array of companies that have demonstrated robust performance and strong growth potential. It aims at providing investors with opportunities for significant returns, focusing on firms with stable financials and promising outlooks across various industries.
1) Bank of Baroda (BoB)
Mirae Asset Capital Markets has set a target price of ₹300 for Bank of Baroda, projecting a 20 percent return from its current share price of ₹249.85. The bank's positive outlook is supported by growth targets of 12-14 percent for loans and 10-12 percent for deposits, along with a strong capital base that underpins a projected 13 percent loan CAGR over FY24-26E. The stock has gained almost 31 percent in the last one year.
2) ICICI Bank
With a target price of ₹1,400, ICICI Bank offers an expected return of 16 percent from its current share price of ₹1,223.85. The bank’s impressive Q1FY25 results, showcasing an over 14 percent YoY increase in PAT to ₹111 billion, are driven by a strong Return on Assets (RoA) of approximately 2.2 percent, robust Net Interest Margin (NIM), and diversified income streams. The bank is targeting a 17 percent CAGR over FY24-26E. The private sector lender has gained over 26 percent in the past one year.
Jupiter Lifeline Hospitals is targeted at ₹1,502, presenting a 13.5 percent expected return from its current share price of ₹1,322.35. The hospital chain demonstrated a strong Q1FY25 performance with 18 percent YoY revenue growth to ₹2.8 billion. Its expansion plans, including new hospitals in Pune and Indore, are set to drive future growth.
Mrs Bectors Food Specialities has a target price of ₹1,565, offering a muted return from its current share price of ₹1560.45. The company posted a robust Q1FY25 performance, with revenue rising by 17.4 percent YoY to ₹4,394 million, led by a 22.4 percent growth in the biscuit segment.
5) Infosys
Infosys, with a target price of ₹1,960, offers a flat 1 percent expected return from its current share price of ₹1,939.1. The company delivered strong Q1FY25 results, upgrading its revenue growth guidance to 3-4 percent in constant currency YoY. Infosys saw a 3.6 percent QoQ revenue increase, driven by large deals and growth in the BFSI and India sectors. The IT major has jumped over 37 percent in the last one year.
Cholamandalam Investment and Finance Company (CIFC) has a target price of ₹1,575, offering an 8.5 percent expected return from its current share price of ₹1,450.7. CIFC reported mixed Q1FY25 results, with AUM growing by 6.8 percent QoQ, though disbursements and asset quality showed some weakness. NIM improved to 6.8 percent, and the company maintains a disbursement growth guidance of 20-25 percent for FY25. The stock has advanced 32 percent in the last one year.
Varun Beverages is projected to reach a target price of ₹1,734, offering a 13.5 percent expected return from its current share price of ₹1,528. The company reported a 28.7 percent YoY increase in Q2CY24 revenue to ₹73.3 billion, with a 28.1 percent rise in volume. Gross margins improved to 53.7 percent, and EBITDA margins reached 27.2 percent. The stock has rallied 72 percent in the last one year.
8) LTIMindtree
LTIMindtree's target price is ₹5,900, offering an almost 4 percent downside from its current share price of ₹6,127.55. The Q1FY25 results showed stable revenue growth of 2.5 percent QoQ, driven by large deals. The company anticipates continued growth in Q2, supported by BFSI and AI investments, though margin pressures are expected. The stock has added over 19 percent in the last one year.
9) Mphasis
Mphasis has a target price of ₹3,185, offering just a 3 percent expected return from its current share price of ₹3,089.45. Despite a slight revenue decline in Q1FY25, the company’s strong growth pipeline and an 80 percent QoQ surge in new deal TCVs justify the target price. The stock has risen almost 34 percent in the last one year.
Apollo Hospitals reported a robust 15 percent YoY revenue increase to ₹5,085 crore in Q1FY25. With an operating profit surge of 32.6 percent YoY and PAT growth of 31 percent YoY to ₹305 crore, Apollo Hospitals is poised for continued growth, supported by its expansion plans and enhancements in digital services. The stock has surged 39 percent in the last year.
Mirae Asset Capital Markets (India) Private Limited (“MACM”) is one of the leading financial services firm providing investment banking, institutional broking, and retail broking services. Mirae Asset Capital Markets’ top picks for this quarter reflect a diverse range of industries with strong growth prospects and stable financials. Investors should consider these stocks as potential additions to their portfolios, aligning with their investment strategies and risk tolerance.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
