Nifty is trading at a valuation of 19.2 times its 1-year forward earnings per share (EPS), which matches the 15-year average of 19.2 times. Prabhudas Lilladher, a brokerage firm, has set a 12-month Nifty target of 25,816 in its base case, and 27,102 in its optimistic scenario.
The firm recommends being overweight in sectors like Auto, Banks, Capital Goods, Consumer, Healthcare, and Telecom. It suggests being underweight in IT, Metals, Diversified Financials, and Oil & Gas.
Prabhudas Lilladher’s Top Largecap Stock Picks
HDFC Bank | Buy | Target Price: ₹2,000
Prabhudas Lilladher expects HDFC Bank to improve its margins and net profit growth by replacing HDFC’s liabilities over FY24-26. It has set a target price of ₹2,000 for the shares.
ICICI Bank | Buy | Target Price: ₹1,450
The firm has increased the target price for ICICI Bank from ₹1,300 to ₹1,450 and maintains a ‘Buy’ rating.
ITC | Accumulate | Target Price: ₹491
ITC’s cigarette sales grew by 2.1% in Q4FY24. Prabhudas Lilladher forecasts that cigarette sales will continue to drive returns, while the FMCG segment will expand its margins by 80-100 basis points annually. They estimate a 7.3% EPS growth rate for FY24-26. The target price has been raised slightly from ₹488 to ₹491.
Larsen & Toubro | Buy | Target Price: ₹4,047
Larsen & Toubro (L&T) is seen as well-positioned for long-term growth due to strong prospects in the Middle East, a solid domestic pipeline supported by public capital expenditure, and rising private investment. It also benefits from expanding into new areas like green hydrogen and semiconductors. The firm has cut the target price slightly to ₹4,047 from ₹4,071 but maintains a ‘Buy’ rating.
Max Healthcare Institute | Buy | Target Price: ₹925
Max Healthcare Institute had a strong quarter with improved occupancy rates and higher Average Revenue Per Occupied Bed (ARPOB) due to tariff revisions. They plan to have over 3,000 additional beds operational by the end of FY27. Prabhudas Lilladher maintains a ‘Buy’ rating with a target price of ₹925.
Maruti Suzuki | Buy | Target Price: ₹14,432
Maruti Suzuki’s revenue is expected to grow due to increased sales of Utility Vehicles (UVs), better export mix, and a higher proportion of Hybrid and CNG models. The target price has been increased from ₹14,350 to ₹14,432, with a ‘Buy’ rating.
Reliance Industries | Hold | Target Price: ₹2,955
Reliance Industries’ refining segment performed better than expected due to improved margins. Retail EBITDA decreased by 7% quarter-on-quarter, while Jio added 10.9 million subscribers. Prabhudas Lilladher has a ‘Hold’ rating with a revised target price of ₹2,955, up from ₹2,902.
Siemens | Accumulate | Target Price: ₹7,030
The brokerage firm raised the target price for Siemens from ₹4,617 to ₹7,030 and maintains an ‘Accumulate’ rating.
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