Stocks to Buy: Titan, ITC, L&T, Zomato among 10 large cap picks by Motilal Oswal (2024)

Nifty is currently trading at a 3% discount to its own long period average (LPA) with a 12-month ahead P/E (price to equity ratio) of 19.7 times as per MOFSL. Remarkably, over the previous five years, the Earning per share CAGR (compound annual growth) of the Nifty-50, which was 15% in FY24 (to ₹980), has converged with the index's CAGR of about 14%.

For the quarter gone by, Nifty earnings are expected to be driven by HDFC Bank, ONGC, ICICI Bank, Maruti Suzuki, Coal India, and TCS, while SBI, Tata Steel, BPCL, Reliance, and JSW Steel are predicted to drag the same.

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For Nifty constituents during the January-March'2024 quarter, MOFSL anticipates 9%, 9%, and 6% year-on-year (YoY) improvements in sales, Ebitda, and PAT, driven by auto and BFSI (Banking, Financial Services, Insurance) Sales, excluding Metals and Oil & Gas Ebitda, Profit before tax and profit after tax are expected to increase 11%, 13%, and 9% YoY respectively for the quarter.

Ebitda stands for earnings Before interest, tax, depreciation and amortisation .

MOFSL says that it is expected that seventeen Nifty businesses will record net profit increase over 20% YoY. In contrast, it is anticipated that fifteen Nifty companies will record a year on year fall in net profit.

ICICI Bank and SBI as per MOFSL is anticipated to see net profit growth of 16.5%- 22.5%. Though consumption sales growth remains soft, Titan is anticipated to see a decent 9% net profit growth.

L&T (Larsen & Toubro) remains favorite of many analysts, and with strong rise in infrastructure activities largely led by Government led spending in the country, analysts expect good earnings growth for L&T. MOFSL also peg L&T to report net profit of around ₹3700 Crore .

Also Read- Stocks to buy: ICICI Bank, IndusInd Bank and SBI - top stock picks among banks from Motilal Oswal ahead of Q4 results

Zomato has seen strong turnaround in prospects. Zomato is expected to be accruing benefits from acquired quick commerce arm—Blinkit. Zomato share price also scaled fresh 52-week highs on Monday.

For ITC , HCL Technologies , Coal India , M&M, Motilal expects a good earnings growth. During Q4 ITC may post net profits at ₹4900 crore up 12.8% sequentially. Others as HCL Technologies will report good earnings growth of 6.8% year-on-year , Coal India will beat many with more than 22% net profit growth during Q4.

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

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Published: 08 Apr 2024, 01:22 PM IST