Stocks to buy: Zomato, LIC, Nykaa among largecap shares with biggest upside potential; 30-40% upside likely

By admin On Mar 13, 2023

UPL, Zomato SBI Life Insurance, Life Insurance Corporation of India (LIC) and FSN E-Commerce (Nykaa) are among stocks with highest upside potential in the largecap space. These stocks can deliver up to 42 per cent upside from hereon, A Motilal Oswal study, based on consensus price targets, suggests. JSW Energy, Shree Cement, ABB and Cummins India, on the other hand, are among stocks with downside potential, the study suggests. For analysis, only the top 100 stocks in terms of market capitalisation were considered.

UPL, which has been mostly flat in the last one year, has an upside potential of 42 per cent, Motilal Oswal Securities suggested. A total of 93 per cent recommendations on the stock are ‘Buy’ calls. Zomato’s consensus target suggests a 39 per cent potential upside. This stock has a ‘Buy’ percentage of 77 per cent. The scrip is down 30 per cent in the last one year.

The third on the list is SBI Life. This stock has 97 per cent ‘Buy’ recommendations. The scrip, which has risen 9 per cent in the last one year, could deliver 38 per cent return, as per consensus estimates. LIC is fourth on the list with 36 per cent potential upside. Post a sharp 31 per cent fall in the last one year, the ‘Buy’ percentage for this stock stands at 80 per cent.

Nykaa (35 per cent), ICICI Prudential Life (35 per cent), Macrotech (34 per cent), Hindalco Industries (31 per cent), Axis Bank (30 per cent) are other stocks with over 30 per cent upside potential. Among these stocks, Hindalco Industries is a consensus buy with 100 per cent ‘Buy’ ratings. Axis Bank also has a high 96 per cent ‘Buy’ calls. Nykaa, on the other hand, has been the worst-hit stock among the top 100 in the last one year, with a 76 per cent drop.

Meanwhile, JSW Energy has been among the top 100 stocks with highest downside potential. The scrip, which has only 9 per cent ‘Buy’ calls, has 23 per cent downside potential, as per consensus estimates. Shree Cement, which has jumped 15 per cent in the last one year, has 10 per cent downside potential. Buy percentage for this stock stands at 28 per cent. ABB, Cummins India, Berger Paints, Polycab India and Siemens have single sigit downside potential, as per consensus. Among these stocks, Cummins India and ABB have delivered solid one-year returns of 78 per cent and 58 per cent, respectively.Siemens has surged 46 per cent while Polycab India has also jumped 38 per cent.

Hindustan Zinc, JSW Steel offer nil upside potential. These two stocks also have a low ‘Buy’ percentage of 19-20 per cent. The Motilal Oswal Securities strategy note was based on March 8 closing price.

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