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

    Synopsis

    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.

    Hot Stocks: Brokerage view on Can Fin Homes, LIC and Prestige Estate Projects that could give 14-40% returniStock
    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)



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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