2 Stocks To Buy With Upside Potential of 17 percent, Says ICICI Direct

Grindwell Norton: Key triggers for future price performance

• With steady penetration of new value added goods, the goal is to preserve market share in abrasives while increasing market share in ceramics and plastics.
• To generate margin expansion (from 16.7 percent in FY20 to 20.6 percent in FY23E), high margin value added items and a solutions-oriented strategy were used.
• Over FY21-23E, we project revenue and EBITDA to expand at a CAGR of 16.7% and 19.2%, respectively.
• Double-digit return ratios, net debt-free b/s, and excellent cash generation.

CMP: Rs 1290

Target: RS 1510

Upside potential: 17%

Target Period: 12 -18 months

Alternate Stock Idea:

Apart from GNL, we also appreciate Elgi Equipment in our coverage.

Gaining inroads in overseas markets would fuel growth among domestic compressor market leaders with good b/s and return ratios. BUY with target price of Rs 260, it said.

TCI Express: Key triggers for future price performance

• TCIEL has remained unaffected by the sector’s rising competitiveness, owing to the company’s relentless focus on building capabilities in the B2B segment through owned branch offices, a focus on MSME and SME clients, and continued investments in IT networks, among other things, which helps the company maintain control over user experience and provide value added services to clients.
• Continuous cost reduction and improved turnaround times through investments in IT, sorting centres, and automation Asset-light business strategy with a predicted RoIC of 25%+ in FY23.

CMP: Rs 1570

Target: | 1850

Upside Potential: 18%

Target Period: 12 months

Alternate Stock Idea

Apart from TCI Express, we remain bullish on BlueDart. BlueDart has benefited from the post-pandemic flight to quality trend, which has resulted in stronger tonnage growth, underpinned by greater digital connectivity with consumers and a focus on servicing larger clients and brands.

The stock has a BUY recommendation from us, with a target price of Rs 6300.

Disclaimer

Stock investing is risky, and investors must exercise caution. Greynium Information Technologies, the author, and the brokerage houses are not liable for any losses caused as a result of decisions based on the article. Investors should take care because the markets have closed at an all-time high