Motilal Oswal’s Top Stock Picks for Budget 2024: ICICI Bank, HCL Tech, KEI Industries, and More

After a strong performance in June 2024, the Nifty index rose by 6.6%, thanks to the return of the NDA government and strong economic indicators like 8.2% GDP growth and 5% inflation. With a stable currency and robust corporate earnings, the market is now focused on the upcoming Union Budget.

Motilal Oswal (MOSL) brokerage has released a budget preview report, highlighting their expectations for government spending to boost consumption ahead of key state elections. MOSL maintains a positive long-term view on the market, favoring sectors like Financials, Consumption, Autos, Telecom, Industrials, and Real Estate.

Large-cap Stock Picks:

1. ICICI Bank: Target price ₹1,350, 8.5% upside. ICICI is expected to show healthy loan growth and strong asset quality.
   
2. HCL Tech: Target price ₹1,710, 13% upside. HCL’s strength in digital engineering and outsourcing is expected to drive growth.
   
3. Coal India: Target price ₹550, 12% upside. Positive outlook due to robust volumes and lower costs.
   
4. State Bank of India: Target price ₹1,015, 19.5% upside. Strong profile and growth opportunities with a stable policy environment.
   
5. L&T: Target price ₹4,150, 14% upside. Expected growth from new inflows and project completions.
   
6. M&M: Target price ₹3,300, 21% upside. Strong demand for SUVs and tractors.
   
7. Mankind Pharma: Target price ₹2,650, 23% upside. Strong brand and earnings growth.
   
8. Chola Invest: Target price ₹1,660, 17% upside. Strong AUM growth and low credit costs.

Mid-cap Stock Picks:

1. Godrej Properties: Target price ₹3,725, 12% upside. Positive outlook due to cash flow and profitability improvements.
   
2. Persistent Systems: Target price ₹4,560, slight upside. Strong growth in healthcare sector.
   
3. KEI Industries: Target price ₹5,230, 16% upside. Leading player in cables & wires with margin expansion expected.
   
4. PNB Housing Finance: Target price ₹1,015, 26% upside. Expected healthy loan growth and strong PAT.
   
5. Angel One: Target price ₹3,400, 53% upside. Positioned for growth across key parameters and new segments.
   
6. Kalyan Jewellers: Strong growth potential with an aggressive expansion plan, aiming for long-term revenue growth and higher ROE.

MOSL’s selections reflect confidence in these companies’ ability to capitalize on economic conditions and government policies, making them attractive investment options for the upcoming budget season.