Hot Stocks: Can Fin Homes, LIC and Prestige Estate Projects can give 14-40% return, suggest brokerages

Brokerage firm Kotak Institutional Equities initiated buy rating on Life Insurance Corporation (LIC), Motilal Oswal recommended a buy call on Prestige Estate Projects and ICICIdirect initiated coverage with a buy rating on CanFin Homes.

We have collated a list of recommendations from top brokerage firms from ETNow and other sources:

Kotak Institutional Equities on LIC: Buy| Target Rs 1000| LTP Rs 709| Upside 41%


Kotak Institutional Equities initiated coverage on LIC with a buy rating and a target price of Rs 1000 which translates into an upside of over 40% from Rs 709 recorded on 2 January 2023.

According to the brokerage, LIC’s dominance is unparalleled in the Indian life insurance sector, with 37% APE market share in FY 2022. The high productivity (15.4 policies/year per agent versus 0.9-4.2 policies/year of its private peers) of over 1.33 mn agents (54% of life insurance agents in India) remain the bedrock of LIC’s market dominance and cost leadership.

“The gradual shift in the product mix in favor of non-par should boost VNB growth, despite moderate APE,” it said.

“Account bifurcation led to a large increase in EV and earnings, even as RoEV was depressed,” it added.

While initiating a buy rating it further said that LIC’s valuations largely ignore its strengths.

ICICIdirect on CanFin Homes: Buy | Target Rs 625 | LTP Rs 546 | Upside 14%

ICICIdirect initiated coverage on CanFin Homes with a buy rating and a target price of Rs 625 which translates into an upside of 14% from the market price Rs 546 recorded on January 2, 2023.

According to the brokerage, consistent business growth with a focus on efficient operations coupled with relatively lower cost and strong underwriting to benefit earnings and return ratios anticipated healthy earnings growth at 17% CAGR in FY22-25E and RoA at ~1.8-1.9% are expected to drive valuations.

The domestic brokerage firm initiated coverage on the stock with a BUY recommendation with a target price of Rs 625.

Motilal Oswal on Prestige Estate: Buy| Target Rs 675| LTP Rs 469| Upside 44%

Motilal Oswal maintained a buy rating on Prestige Estate with a target price of Rs 675 which translates into an upside of over 40% from the market price of Rs 469 recorded on January 2, 2023.

“The stock has not seen any major re-rating despite continued strong performance in its residential business,” it said

“In our opinion, this is likely due to concerns over leverage given a heavy CAPEX cycle ahead of us,” it added.

The brokerage expects CY23 to be a defining year for PEPL as it looks to grow its pre-sales on a strong base, provide growth visibility, and allay concerns of rise in leverage beyond a comfortable level.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)