MOFSL on Monday maintained ‘Buy’ score on three shares particularly ICICI Bank Ltd, Coforge Ltd and Kalyan Jewellers India Ltd, with targets suggesting as much as 73 per cent potential upside. Coforge shares are at the moment pricing in an excessive bear-case state of affairs, the brokerage mentioned. It mentioned demand momentum for Kalyan remained robust regardless of a pointy rise in common gold costs in This autumn. It cited ICICI Bank’s asset high quality, low credit score prices and robust provision buffers to recommend ‘Buy’ on the inventory.
ICICI Bank | Target Rs 1,750 | Upside potential: 40%
MOFSL mentioned ICICI Bank is well-positioned to report wholesome working efficiency, led by all-round supply on all key metrics. Growth, it mentioned, is changing into more and more broad-based, led by enterprise banking and bettering company demand, whereas the financial institution continues to deal with strengthening its legal responsibility franchise. Having successfully leveraged margins, the financial institution is now specializing in price revenue enlargement and working leverage as key levers to assist earnings within the subsequent part of progress, even because the financial institution continues to spend money on distribution and expertise, it mentioned.
“Asset quality remains a key strength, with low credit costs (~45-50bps through-cycle) and strong provision buffers, ensuring earnings stability across cycles. With a disciplined, risk-calibrated approach and increasing focus on market share gains, ICICI Bank remains well-positioned to deliver consistent compounding. We, thus, estimate the bank to deliver a PPoP/PAT CAGR of 17.7 per cent/16 per cent over FY26-28E, leading to an RoA/RoE of 2.3 per cent/16.4 per cent,” it mentioned.
Kalyan Jewellers | Target worth Rs 550 | Upside potential: 44%
MOFSL mentioned Kalyan Jewellers is prone to maintain a powerful progress trajectory as India’s jewelry demand for high manufacturers stays robust. Despite a pointy rise in common gold costs (up 80 per cent YoY and 20 per cent QoQ in 4QFY26), the demand momentum remained sturdy via January–March, properly supported by the marriage season, it mentioned.
The profitable scale-up of franchise-led mannequin (50 per cent income contribution) and sturdy traction in non-South markets have strengthened its progress profile, with an bettering studded combine and an asset-light technique aiding money circulate era, deleveraging, and profitability, it mentioned.
Kalyan has delivered a income, Ebitda and adjusted PAT CAGR of 33-54 per cent over FY22-26E.
“We model a CAGR of 21 per cent, 19 per cent and 23 per cent in revenue, Ebitda and PAT over FY26–28E. The stock trades at 24 times/20 times PE on FY27/FY28E and at less than 1 time FY27E sales, offering an attractive risk-reward,” MOFSL mentioned.
Coforge | Target worth: Rs 1,880 | Upside potential: 73%
Despite near-term dangers, Coforge valuations look engaging after the current correction, MOFSL mentioned. Since the US–Iran battle broke out, Coforge Ltd has witnessed a decline of 9-10 per cent (45 per cent from its peak) and underperformed a few of its midcap friends by 2-9 per cent. Coforge appears to have two disadvantages in opposition to friends because it has comparatively increased publicity to the journey vertical and has West Asia publicity.
“We believe the stock is currently pricing in an extreme bear-case scenario. The stock trades at 20 times FY28E P/E, assuming a bear case of 10 per cent organic constant currency growth rate in FY27/FY28E. At current levels, valuations appear attractive, even on our pared estimates,” MOFSL mentioned.
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